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Resolution No. 9510 (2)EXECUTION VERSION SCHEDULES TO THE CITY OF VERNON PURCHASE AND SALE AGREEMENT Schedule 1.1-FS Facility Site [Separately provided] 1.1-FS-1 EXHIBIT "All A PORTION OF LOT 7, TRACT NUMBER 6452 IN THE CITY OF. VERNON, COUNTY OF LOS ANGELES; STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 94 PAGES 77 AND 78 OF MAPS, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF SAID LOT 7, SAID CORNER ALSO BEING THE BEGINNING OF A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 367.83 FEET, A RADIAL LINE PASSING THROUGH SAID CORNER BEAR SOUTH 58'03'33 WEST; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 59'37'38., AN ARC DISTANCE OF 382.79 FEET; THENCE NORTH 88'25'55 EAST 323.79 FEET ALONG THE NORTHERLY LINE OF SAID LOT 7 TO A POINT ON THE SOUTHERLY LINE OF A PORTION DEEDED FOR THE WIDENING OF THE LOS ANGELES JUNCTION RAILROAD RIGHT-OF-WAY AS SHOWN ON LOS ANGELES COUNTY FIELD MAP NUMBER 10287 PAGE A3, RECORDS OF SAID COUNT, SAID POINT ALSO BEING THE BEGINNING OF A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 006.21 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 4'45'51" AN ARC DISTANCE OF 75.35 FEET TO THE BEGINNING OF A COMPOUND CURVE HAVING A RADIUS OF 294.44 FEET; THENCE EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF. 13'28'39" AN ARC DISTANCE OF 69.26 FEET TO A POINT ON THE EASTERLY LINE OF A PORTION DEEDED FOR THE WIDENING OF SOTO STREET AS SHOWN ON SAID LOS ANGELES COUNTY FIELD MAP.; THENCE SOUTH 1'37'37" EAST 186.27 FEET ALONG SAID EASTERLY LINE; THENCE SOUTH 88'10'26" WEST 33.20 FEET; THENCE NORTH 01'49'34" WEST 6.00 FEET; THENCE SOUTH 88'10'26" WEST 6.00 FEET; THENCE SOUTH 01'49'34" EAST .6.00 FEET; THENCE SOUTH 88'10'26" WEST 439.07 FEET; THENCE NORTH 01'27'57" WEST 115.24 FEET; THENCE SOUTH 89'10'17" WEST 193.60 FEET; THENCE NORTH 02'51'27" WEST 42.65 FEET; THENCE NORTH 87'47'00" EAST 11.55 FEET; THENCE THENCE NORTH 01'54'17" WEST 24.22 FEET; THENCE SOUTH 87'28'16" WEST 10.26 FEET; THENCE NORTH 01'06'15" WEST 13.30 FEET; THENCE SOUTH 88'48'42" WEST 81.59 FEET; THENCE SOUTH 01'26'34" EAST 79.61 FEET; THENCE SOUTH 89'10'17" WEST 37.82 FEET TO A POINT ON THE WESTERLY LINE OF SAID LOT 7: THENCE NORTH 00'09'03" WEST 267.99 FEET ALONG SAID WESTERLY LINE TO THE POINT OF BEGINNING. CONTAINING 3.10 ACRES MORE OR LESS. AS SHOWN ON EXHIBIT "B", ATTACHED HERETO AND BY THIS REFERENCE MADE APART HEREOF. DAVID T. ROSELL P.L.S. 6281 EXP. 9/30/08 0 DAVID T. ROSELL * EXP. 9-30-00 No. 6281 EXHIBIT "B" G�Pp y56 1„_140' 5 dh$O POINT OF BEGINNING MORTH WILY CORNER LOT 7 SOUTHERLY LINE AND WESTERLY LINE OF THE PORTIONS DEEDED FOR THE W Q rn WIDENING OF SOTO STREET AND LOS ANGELES JUNCTION RAILWAY CO.. AS SHOWN ON F.M. 10287/A3 _ Z O w - w ( 3 C� LA JUNCTION RY CO ' w > _ > L c_2 o Lt0 8 - NB8'2555"E 323.79' 'CZ-_ J_ F. o L9 1 W z L6 -' U J W J W W m y 193.60' U2 S89't0'17"W LEASE AREA I > a ,m Q W N PJR-fIJ1�1 CIF L J f! N N� ^ 1 Lir� ACT w)J. �'� ; � �43 JL1 1 o� 1 oo ma 94MI-43 44SSB't0'26"w 439:07' VARIES Cj 20' N U m - EAST 5 0 T H STREET} a (40' WIDE PUBLIC RIGHT-OF-WAY) 20' LINE TABLE LINE LENGTH _ BEARING.. It 33.20 S88'10'26"W L2 6.00 NOl'49'34"W L3 6.00 S88'10'26"W L4 6.00 SOt'49'34"E LS 42.65 S02'S1'27"E L6 1L55 58T47`00"W L7 24.22 SO1'54'17"E L8 10.26 S87'28'16"W L9 13.30 SOt'06'15`E L10 81.59 588'48'42"W ltl 79.61 SOl'26'34"E U2 37.82 589't0'17"W CURVE TABLE CURVE DELTA RADIUS LENGTH C1 59'37'38" 367.83 382.79' C2 4'45'S1" 906.21 75.35' C3 t3'28'39` 29a.aa 69.26' Schedule 1.1-HD Hoover Dam Uprating Project The Hoover Dam Uprating Project consists principally of the uprating of the capacity of 17 generating units at the hydroelectric power plant of the Hoover Dam, located approximately 25 miles from Las Vegas, Nevada. 1.1-PV-1 Schedule U-PE Permitted Encumbrances None. 1.1-TI-I' Schedule 2.1(b) Electrical Interconnection Facilities [Separately provided] 2.1(b)-1 WA -r- Schedule 2.1(c) Pre -Ordered Equipment [Separately provided] 2.1(d) t) v SIEMENS Quotation Wednesday, January 10. 2007 City Of Vernon L 6 P Malburg Generating station. Vernon, CA Attn: Mark Thompson Phone: 323-826-3610 Fax 323-685.5074 subject: Your Inquiry ('a* Inspodon Ports - One Unit) Ouotalion Number 40042.06T-1 fiovisbn 1 for Clty Of Vernon L & P Copy Siemens Demag Delaval Turbomachinsry Inc. is pleased to offer the following for your consideration: Unh Lela'nme Item Oty PM Number Description Serial No. (weeks) ' Unit Price Extended_ Price 001 �o 2423560•C Burner B053/ $37.925.00 Si .00 002 2,ti' 242369" Combustor 50531 $1,616,328.00 00317'�Bi 2423470•C Turbine blade B0531 $11,605.00 $1,jm0;631� 00 u 2,01 ), 770• 0041" 56 2423463-A Guide vane Van* 1 Complete D0531 $19.289.00 S9t34� 1 9 21, i o a •" = 005 qg gV 2422964•A Guide vane Turb.gulde vane2 130531 $12,542.00 $814—%aV01,22-1 11 I.• 008 2 A' 2420018-0 Guide Yane No 2, boroscope BM31 $12.961.00 S7 2,V- = 007 y 7 2423682-A Guide verse No 2, Temp 8=1 $13.263.00 $26,526:00. n-0N.1�- 008 1(6 1CSAt0225.1 Braided paWng B0531 $1.00 Seotf wgsrzx T3907.178 Lock washer e0531 S5.00 $1,380:00 2,7j0- = 010 1 Z',8. 215176p2.197 Washer. 80531 $19.00 $114.00 22B'� 011 9d T3904-178 Loctung washer 80531 $3.00 $1—W.00 -�"}o • ._ 012 tM,-d T3910.185 Lock washer (folded) 80531 $5.00 $)20.00 - If a 013 l [�td T3907-.178 Lock washer B0531 $5.00 W&.(Z- 1'? 0 `= 014 +2' 2423623-2 Sealing ring G-seat 80531 $22100 $99a-ea O z `= 015 Z A 2423623.1 Searing ring C-seal U0531 $470.00 >L420:00 '-♦' 0 016 Z T3712-317 Sheet gasket sec. to EN 00531 $8.00 St8:d0 ? = 017 }� 3 T3712-318 Sheet gasket am. to EN 00531 $16.00 018 X T3712.924 Shoal gasket 130531 $32.00 596:00 019 1'} T3712-222 Sheet gasket arc. to EN e06ml $32.00 $2241TO �y�•"= 020 VX T3712-220 Sheet gasket aoc. to EN 80531 $14.00 SS&W 1) -.- r= Siemens Demag Delaval Turbomachinery Inc. 840 Nottingham Way Tel: 4609) 89C.WW www.pg.slem".com HamlBan, New Jersey 06638 USA Fax: (609) 587.7790 SIEMENS Quotation Quotation 40042.06T-I Continued, page 2 of 9 copy 021 V e 2421466.1 ._ Gasket 80531 $99.00 Spa->f0 -712 .� C22 •2 ]' 2422868-7 3 Gasket Armco 80531 $16.00 II&M 023 Lr f2Z T3907-186 Lock washer 80531 S8.00 s1f8:00 024 71 IZ T3905.186 Lock washer Stainless steel B0531 $9.00 $108.00 025_ 2Y T3711.315 Sheet gasket 80531 $2.00 S2.00 025 A f Z T3711-319 Sheet gasket 80531 S4.00 S8.00 027, ,Z.Y T3711-315 Sheetga3ket 80531 $2.00- S2.00 028 Z Y T3712-222 Sheet gasket acc. to EN M31 SU-00 $32.00 029 'f !f T3711.319 Sheet gasket 80531 $4.00 58.00 030 2 1' T3712-225 Sheet gasket according to EN 80531 $73.00 $73.00 031 621e' T3907.166 Lock washer B0531 $8.00 $128.00 1 1 032 I8 24 T3907-178 Lock washer 80531 $5.00 $120.00 033 2 Y 2422868-3 Gasket Arco 80531 S62.00 $62.00 . 034 If,4' 242286&1 Gasket Arco B0531 W-00 $128.00 035 8 4' 2422e68-2 Gasket Armco 80531 $12.00 S48.00 036, E ,4 T3910473 Lock washer (folded) 80531 $4.00 $16.00 037 g T1253-239 Spill pin 80531 $4.00 $16.00 038 12_,er 2422B8&8 paakelArnco 80531 $22.00 S132.00 039 11,0 2422868-5 Gasket Armco B0531 $21.00 $168.00 . 040 _ 2 Y T3712 3/4 Gasket - B0531 $5.00 $5.00 041, 8 Y' T3905.178 Lock waahet (101dod) 80631 $8.00 S32:00 042 ai 2420212-1 Sealing E-3eeling B0531 $13.739.00 S13.739.00 043 tj2.WT3907-178 Lock washer 00531 $5.00 $80.00 044;2,fV' T3907-186 Lock washer B%31 $8.00 $992.00 045 72A T3907.179 Lock washer Nordlock B0631 $9.00 $144.00 046i� T3906-178 Lock washer (folded) B0531 S8.00 - $400,00 Siemens Demag Delaval Turbomachinery Inc. 840 Noainghain Way Tel: (609)990-5000 www.pg.siemen9.com HemI ton, New Jeney 08638 USA few. I609) 587.7790 SIEMENS Quotation Quotation 40042.06T-1 continuLd, page 3 of 9 Copy 047 A�,2 2421514.2 Gasket 80531 $13.00 $26.00 048 2421614.1 049 2 T3907-165 0502138'T3907.179 051.3z W T3907.186 Gasket Lock washer Lock washer Nordlock Lock washer 00531 80531 00531 130531 $Moo $3.00 $9.00 $8.00 $26.00 $6.00 $1.18t1.00 $120.00 /UyL 052 f Y 2421283-1 Gasket Square gasket B0531 $13.00 $26.00 053 0 21517002-175 Lock washer 90531 $26.00 $208.00 0544 2' 2421284-1 Gasket Square gasket 80531 $15.00 $30.00 055 I 9- 21517002-175 Lock washer B0531 $26.00 S206.00 056 30' "2420792-1 Gasket 80531 $78.00 $2.340.00 057�� T3907-186 Lock washer 80531 $8.00 $1.440.00 058 A Z 2415046.2 Gasket B0531 $39.00 $78.00 059 R2-1d T3907.188 Lock washer 80531 $8.00 $128.00 060 2 'k 2416046-2 Gasket B0531 $39.00 $39.00 061 11. 4- T3907-186 Lock washer 80531 $6.00 WOO.. 1 7) 062 ? 0 1� T3910 185 Lock washer (fatded) BOli31 $6.00 $50.00 �kj/ 063 1�( 3' T3706-133 Gasket metal sheeted B0631 $16.00 $48.00 064 4 3' T3910-204 Lock washer (folded) 00531 $6.00 $18.00 065 Ied 3O 21517002.195 Washer 80531 $11.00 $550.00 086 & 0 20' 2421910.1 . Spacer ring 00531 $13.00 $390.00 067 G030-2421910.2 Spacer ring B0531 $1e.00 $540.00 068 GO 3a-2421910-3 Spacer ring 80531 $19.00 $570.00 069 40 W 2421910-4 Spacer ring 00531 $22.00 $660.00 070(yO 30. 2420792-1 Gasket B0531 378.00 $2,340.00 071 P-T3910.179 Lock washer (folded) 00631 $3.00 $12.00 L1 Q) 072 2 t-T3706-138 Gasket 80531 $71.00 $71.00 Siemens Demag Delaval Turbomachinmy Inc. 840 Nottingham Way Tel; (We) 890.500 www.pg.tiernene.corn Hamilton, New Jersey 08638 USA Fax: (809) 587-7790 SIEMENS Quotation Ouotation 40042.06T.1 continued, page 4 of 9 copy 073 2 / T3712-314 Gasket 80531 $5.00 $5.00 074 40) 26-2420702.1 Lock washer (folded) 00531 538.00 11,140.p0 075 ;50 21' T3910-185 lock washer (folded) 00531 55.00 $125.00 i 0761:11�� T3907-106 Lock washer 8053E $8.00 $660.00 077,5.0 29. 2420476.1 Sealing Outer seal strip' 80531 $25.00 $625.00 0786o 28 2420476.1 Sealing Inner seal strip 80531 $67.00 $1,675.00 079ted W 2420708-1 Lock washer 60531 $12.00 $600.00 080 2.4 4r 13408044.139 Wire round, slalnlese W531. $3.00 $36.00 0811001 50- 2420703-2 Retaining ring Internal 130631 $18.00 $900.00 �.� 082 I,0 W T3905-166 063 5d -25 2420475-1 Lock washer (folded) Sealing Outer seal strip 00531 BM31 $8.00 $25.00 $400.00 $625.00 . 0846025 2420476-1 So" Inner seal elrfp 13053E $67.00 $1,676.00 OBS -OZ 2420477-1 Sealing Seal strip 80531 $67.00 $1,675.00 088 SV 26 2423340.1 Sealing Rear$eal strip 00531 $75.00 $1,875.00- 0871o0 < 2420703-1 Relslningring Internal 130531 $34.00 $1,700.00 088 6b W 2420702.2 Lock washer (folded) 80531 $37.00 $92S.OD. 089 20 4T 2420490-1 Lock nut Of steel 60531 $2.00 $20.00 090 1 8P 2423585 1 Sealing blade 1 B0531 $120.00 $10,440.00 091 (y 3-2424155-1 Seeing B0531 $1.00 $3.00 i 0 (0 2- 2420137-1 Lock plate blade 1 B0531 $629.00 $.1,887.00 093872423582.2 Sealing Bladet � 80531 $38.00 E3,306.00 094 3Ltii' T3906.178 Look weeher (folded) 80531 $8.00 $136.00 095:gitAeT3907.178 Lock washer B0531 $5.00 $740.00 096=yY T3905.178 Lock washer (folded) 80631 $8.00 $88.00 097,2 6- 21517002.162 Lock washer 80531 $18.00 $108.00 W82-o W 2420211.1 Sealing Seal strip 50531 $237.00 $2,3 0.00 Siemens Demag Delaval Turbomachlnery Inc. 840 Nottingham Way Tel: (6091 890.5000 www.pg.3i@RWS.com Mamdlon. New Jersey 08638 USA Fax: 1009) 587.7790 L SIEMENS Quotation Ouotatlon 40042-08T-1 continued, page 5 of 9 099 I s452- 2420534.1 Sealing Outer sealstrip 80531 $74.00 $3.840.00 100 Imler 2423256.1 Sealing Inner seal strip 80531 $75.00 a900.00 101 2-YA1551e60-1 Plastic toil BMI $47.00 S47.00 102 1 Y A0721170-185 Paste lubricant 80631 $137.00 $274.00 103 jo 20- 13408044-139 Wire round. stainless BOS31 $3.00 $60.00 104 cf 2- A0721230-56 Thread sealing Loctits 542 B0531 $61.00 $122.00 i 105 ?Y4-A1551160.14 Tape 80531 $13.00 $52.00 i 108 :Z Y A0721230.62 Threadlocker Loulte 275 W531 $77.00 $77.00 107 y 1Y A0721230-61 Locllte 243 80631 $77.00 $77.00 I i 108 tf02r A1556846.35 Emery cloth, no. 100 B0531 $3.00 360.00 i 109 _0I& A1556646.36 Emerypaper B053t $3.00 $30.00 i I 110 P& W A155084B-37 Emery doth B0531 $3.00 $30.00 111 Aft 28- A349686041 Cleaning cloth 130631 $4.00 $80.00 lwl `2 112 10 b- A1566060.12 Well brush mottler B0531 $2.00 $10.00 U 113 Af 2• A1551160-12 Masking tape 80531 $4.00 $8.00 114 go-34- A8212952-21 Deposit box 80631 $9.00 $135.00 115 %0 36- A8212952-22 Deposit box 80531 $5.00 E176.00 116 0 #5: A8212962-23. Deposit box B0531 $7.00 S105.00 1179(�ArAl&%990.472 Assembly glove B0531 $11.00 $528.00 118 2 .-AIS51178.31 Marking palntSrylmark B0531 $21.00 $21.00 119 0-SA244t176-48 Marking pen Arlline400-XF 90531 $10.00 $50.00 120 2X 13108011-2 Gasket sheet 90531 $612.Do 3812.00 121 1, 2-17108001-143 Gasket sheet B0531 $81.00 $243.00 J-1 �3) 122 E-0 25 At651160•1 t Cleaning Ilssue 80531 $25.00 $625.00 123 afg 2T A1558960.38 Refuse sack 80531 $2.00 $40.00 124 Lp ta- A1554944.3 Battery B0531 $1.00 $10.00 Siemens Demag Delaval Turbomachlnery Inc. 840NonkrghemWay Tel: (609)M-5000 www.pg.liamens.com Hamihon. New Jersey 00638 USA Fes: (609) 587.7790 - - SIEMENS Copy Quotation Ouotation 40042-08T-1 continued, papa 6 of 9 t25 201O�A1554944.8 Battery _ B0531 $-1.00 $10.00 126 2o�WA606E1516082 WIRE BUNGLERS 390X4,7T50L 80531 $1,00 5100.00 127 `t 2- A606E0764113 Electrical tape 80531 $3.00 $6.00 128 jam' T3704.108 - Point gasket 80631 $3.00 $15.00 129 8' T3725.179 Gasket B0531 $2.00 $f6.00 " 130 10 "6102.101 Union nut B0531 $1.00 $5.00 131 i42-T6313.101 Plug for pipe coupling 80531 $2.00 $4.00 1� 132 T8811'r102 Coupling 80531 55:00 $10,00 v = 133 +{ 2- TB815-802 Coupling d 8, 114 npf B0531 $8.00 $12.00 134 Y T8820.102 Pipe ocupling, straight 80531 $11.00 $22.00 135 2 r T6830 101 Union 80531 $7.00 $7.00 136 2fi T6870.101 Tee coupling 80531 $18.D0 $18.00 137 a Al' T7021-101 Fernde B0531 $1.00 $5.00 138k 4 1CSA8136.1 Nut B0531 $90.00 $270.00 139 J X 1CSA8135.t Nipple 80531 $28.00 $84.00. 140 2 A 1CSA8133.1 Coupling 80531 $12.00 $12.00 141" (,.3- 1851523-1 Nipple 80531 $16.00 $48.00 142 8 4- 1852416.1 Adapter M12 x 1,5 -R114' 90531 $31.00 $124.00 143 If r 1852417.1' Nipple W531 $28.00 $56.00 144 If-2 2035928-6 1 Oulck goupling male 80531 $107.00 $214.00 145 2 2WS029-2 Adapter female -male, BSPP-NPT B0531 $29.00 $56.00 146 A f e 70006731-A Pipe connector B0531 $21.00 $42.00 147 q 2 70MI31.8 Pipe connector SM31 $21.00 $42.00 148 2.1- 70008131-C Pipe connector 80531 $21.00 421.00 149 23- 700061131-E Pipe connector 80531 $21.00 $21.00 150 ` AtZ' 70008131-D Pipe connector B0531 519.00 $38.00 Slemens Demag Delaval Turbomachinery Inc. " WNonr am Way TO: (609) 890.6000 www.pp-siemens.com - Hemllton, New Jersey 08638 USA Few: (609) 587-7790 - - SIEMENS Quotation Ouolation 40D42.06T-1 confined, page 7 of 9 151 8 a' 1CSA8259-1 Hose 80531 $6.00 $24.00 152 if. ' 1CSA8263.1 Coupling. B0531 $6.00 $12.00 163 .�2- 1CSA8261-1 Coupling 80531 $5.00 $10:00 154 1 r 1CSA8262.1 Coupling B0531 $4.00 $8.00 155 * 29. 1CSA8130.1 Sleeve 80631 $7.00 $140.00 156 I@ -r 1CSA7988-1 Hose 130531 $6.00 S30.00 157 8 4' 1CSA8267-1 Gasket 80531 $16.00 $64.00 158 �� 8-1CSA8268.1 Gesket 80531 $22.00 $176.00 159 1 p a-2423623-3 Sealing ring C-seal 80531' $165.00 S775.00 160 K T1873.538 28 Hexagon eockethead screw 80531 $42.00 $588.00 large clearance 161 jk�4 T7865-542 Hexagon -head boll B0631 $156.00 $5,304.00 1�) 162 So W T3907.178 Lock washer 80531 $6.00 $200.00 163 124- 2021278-3 Gasket for flange connection 80531 $51.00 $306.00 164 124- 2021276-2 Gasket for flange connection B0531 $29.00 $174.00 166 T2804.126 Hexagon nut 80531 $2.00 $16.00 168 114 0-T1624-695 Screw, steel B0531 S17.00 $136.00 167 1 8- T2804.124 Hexagon nut 80531 S4.00 $32.00 168 .1 (� 8' T1824-641 Hexagon head screw 00531 $9.00 S72.00 169 g -4- T3717.316 Gasket 130531 $86.00 $344.00 170 1 , 4- T1622.630 Hexagon head screw BW31 $3.00 $24.00 171 a 4-T3717.465 Gasket 60531 $99.00 $396.00 ---i 72 , 4 ,8 T 1622.676 Hexagon head screw galvanized 80531 $5.00 $40.00 P� 1 173 2 r A0721170-185 Paste lubricant 80631 $137.00 $137.00 174 2 Y A4431160.63 Teflon band 60631 $2.00 $2.00 175 14 W6861110-3 Wire brush 80531 $4.00 $4.00 176 24-AIS51160.12 Masking lope 80531 Siemens Demag Delaval Turbomechinery Inc. 840 Nottingham Way Tel: (609) 990-5000 m .pg.siomermcom Hamblen. New Jersey 06638 USA Fax: (609) 587-7790 $4.00 $4.00 SIEMENS Quotation Ouctallon 40042.06T-1 continued, page 8 of 9 177 2 _1-A1551160-14 Tape B0531 $13.00 $13.00 178 2 k A606E0754113 Electrical tape 80531 $3.00 S3.00 179 AYT6815-802 Coupling d 8, 1/4 npf B0531 $0.00 $24.00 180 4-1852417.1 Nipple B0531 $26.00 $112.00 181 H 1852416.1 Adapter M12 x 1.5 -Rt/4' U0531 $31.00 $93.00 d- 1 1, 182 �, 8' 2035928.E Ouick goupltng male 80531 $107.00 $321.00 183 `p, 8' 2035929-2 Adapter female-mNe, BSPP-NPT B0531 $29.00 $87.00 184 (x 2-. T372&179 Gasket 80531 $2.00 $6.00 18528-1CSA8386.1 Teflon hose 00531 $5.00 $125.00 186 &0 23- 1CSA8253-1 Spring B0531 $3.00 $75.00 187 Al. W T6102.101 Union nul 80531, $1.00 $20.00 188 I-o 20 70005795-a Adapter 80531 $39.00 $780.00 189 d i-AS831260.4 Bycotest CS Cleaner Dangerous 80531 $26.00 $100.00 Goods 190 V A155117088 Rust oil WD 40 Dangerous B0631 $21.00 $105.00 i(J Goods 191 8 A-A6831260.2 Bycoteet RP20 Peneir. coloured 80531 S25.00 $10D.00 Dangerous 192 A6831280.3 BycotestD30 Developer 00531 $25.00 $100.00 �a 1 Dangerous G JJ 193 2A- A1551170.190 Rust preventive Dangerous G 80531 $19.00 $19.00 Total - Exworka: Flnspong. SE US Dollars $5,670.925.00 Price Is for one unit. Price does not include sales 6 use taxes that may apply to the state of Callfomis. Price does not Include frelght/dury/related charges to ship from Flnspong, SE to the City of Vernon. SDDTI offers to coordinate such activities at our cost plus 10% and then invoice to City of Vemon. This pricing Is at an exchange rate of 6,77 SEK / $1.00 USD. Siemens reserves the right to adjust the pricing should the exchange rate move by more than 5.1E at the time of order. Progress payments (see.cover lehor dated 0111 WD07) otherwise: 409E of order amount to be Invoiced when PO is received. 50% o1 order amount to be invoiced 120 days after recelpt of PO. 10% of order amount to be invoiced upon final shipment. Siemens Demag Delaval Turbomachinery Inc. 8e0 Nohingham Way .Tel: (609) 890-5000 w..w.pp.slemens.ccm Hamilton. New Jersey 08638 USA Fax: (509) 5e7.7790 _ SIEMENS COPY Quotation Ouotafion 40042-06T•1 continued, page 9 of 9 Lead limes for individual One items are shown in weeks Sher receipt of order, subject to prior sale. Prices are firm through shipment and valid 30 days from the date of this letter. Please note that Mare is a $500 minimum order value. Payment will be progress payments (see notes). Siemens Demag 0elaval Turbomactinery Inc. Selling Policy 1200 (dated 511f2005) shah apply to any resultant order. AN purchase orders are to be made out In the name of: Siemens Demag De4aval Turbomachlnery Inc. 840 Nottingham Way Hamilton, Now Jersey086M USA II you have any.Quostions, please feet free to contact me or. Best Regards Scott Hutchinson Customer Service Representative Tei: (281) 85fr4428 Fax: (281) 856-4499 e-m&U:scoft.Wchinwn@3ieme.ns.com i Siemens Demag Delaval Turbomachinery Inc. 840 NonuKyrem Way Tel: (609) 690-5000 www.pg--kmena.com Hamilton. New Jersey 08MO USA Fax: (6W) 587.7790 C1TY•JF VERNON, CALIFORNIA PURCHASE RE SITION . LIGHT & P R LP No. 4996 DEPARTMENT REOUESTOR NAME: DATE: 11 612007— SUGGESTED VENDOR. PHONE NO.: _ VENDOR ADDRESS: nry nec ng -_.()40 NOTTMIGHAM WAY- HAMiL-TON; EW-JER9- FAX I: CONTACT PERSON: S )IT HI 'TrHuRnm REQUIRED DEUVE V OR BIiRVICE DATE_ ^_ DELIVERY OR SERVICE LOCATION S TO ST. ACCOUNT NO ITEMS BUDGETED YES NO �j(rt+ a, 069 y Q.N�'9�01"0`9Ybi"W NDEDAMOTUNRPRIGEEXfEN (Con*%usd hom prrwout MI) $11341612 $11,341,612 0 .00 s 6kh = AW1260. eyootse030 Dttrostlopw DangeMut►G . . $25. $200.00 Z : "OhA18E1170• RUM pnwnbeM Dangerous G $19.0 $38.00 14o 8.25% Sales tax $935702.6 $935,702.63 See attached Quote# 40042-08T-1 Page 20 of 20 SubTota : $12,277,552.63 Ta : Shippin : SCHEDULED DELIVERY DATE: Tots w IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby certify that the above items are necessary for the operation of this Depanmerx� �L i } • �.��`•. �� \�_� Department Head or Authorized Person ISSUED BY DATE FOR PURCHASING DEPARTMENT USE ONLY RECEIVED BY DATE PURCHASE ORDER NUMBER nF:PAPTAAKfUT PI F CITY.OF VERNON, CALIFORNIA PURCHASE RE SITtON LIGHT & P R LP No. 917 DEPARTMENT: REQUESTOR'NAME: CALLAGHAN 11MC DATE: 1/16/2007 SUGGESTED VENDOR: PHONE NO.:( 6091890-5000 VENDOR ADDRESS: FAX r: CONTACT PERSON: SCOTT HUTCHINSON In REQUIRED DELIVERY OR SERVICE DATE: RIJRH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X NO QUIINT?;t uHcraFtesiJE. DESCRIPTION UNIT PRICE ' EXTENDED AMOUNT 60 each 2423560-C BUMdr $37926.00 $2.275,500. 00 2 each 2423699-0 Combustor $U16328.10 $3,632,656. 00 174 each 2423470-C Turbine blade $11605.0 $2,019.270. 00 10D each 2423483-A Guide vane Vane 1 Complete $19289. $1,928,9D0. 00 98 each 2422954-A Guide vane Turb. guide vane2 $12542-0110 $1,229,116. , 00 2 each 2420018-0 Guide vane No. 2 boroscope $12961.00 $25,922.00 4 each 2423682-A Guide vane No. 2 Temp $13263.0 $53,052.00 16 each 1CSA1022 Braided pecking $1.0 $16.00 5-1 552 each T3907-178 Lock Washer $5.01 $2,760.00 12 each 21517002- Washer $19.01 $228.00 197 80 each T3904-178 Locking Washer $3.0 $240.00 Page 1 of 20 (Continued on next page) SubTota $11.167,660.00 To): Shippin SCHEDULED DELIVERY DATE: Tota * IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby cenify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USEONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER :j nrrpaPTA AFArT Ctr C CITY OF VERNON, CALIFORNIA ® PURE GHT & PRITION 9 LP No. #AR DETMENT: - REOUESTOR NAME:Lap 00NA1 DATE: 1/16007 SUGGESTED VENDOR: PHONE NO.- l 60SIEMENS /890-5000 VENDOR ADDRESS: FAX ft: CONTACT PERSON: REQUIRED DELIVERY OR SERVICE DATE: RI ISM DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES _X 1k NO QUANTITY uMt.orwuE DESCAIPTlONN K .� UNrTPRICE. EXTENDEDAMOUK I (Continued from previous page) $11167660 $11,167,660 0 .00 48 each T3910-165 Lock W ashec (tolded) $5. $240.00 26 each T3907-178 Lock Washer $5.0 $130.00 4 each 2423623-2 Sealing ring C-seal $223.0 $892.00 2 each 2423623-1 Seating ring C-seal $470.01 $940.00 4 each T3712-317 Sheet gasket acc. to EN $8. $32.00 6 each T3712-318 Sheet gasket acc. to EN $1ti. $96.00 6 each T3712-224 Sheet gasket $32.0 $192.00 14 each T3712-222 Sheet gasket ace. to EN $32.0) $448.00 8 each T3712-220 Sheet gasket acc. to EN $14.0 $112.00 8 each 2421466-1 Gasket $99.0 $792.00 Page 2 of 20 (Continued on next page) SubTota : $11.171,534.00 Tat Shipping: SCHEDULED DELIVERY DATE: Tota 1, * IF ITEMS ARE NOT BUDGETED; EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. TLia_ 0.41 rA LI I hereby certify that the above items are necessary for the operation of this Department - Department Head or Autharized Person FOR PURCHASING DEPARTMENT USE. ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER CITY•• F VERNON, CALIFORNIAe PURCHASE RE�S1T10N 9 LIGHT & P R LP No. 4979 DEPARTMENT: RE0�IESTOR NAME:DONAL LLAGHAN / IMC DATE: 1/16/2007 SUGGESTED VENDOR: PHONE NO.: ( 609]890_�jQQQ VENDOR ADDRESS: FAX 0: CONTACT PERSON: SCOTT HUTCHINSON 15877790 REQUIRED DELIVERY OR SERVICE DATE: RI ISH DELIVERY OR SERVICE LOCATION: 4963' SOTO ST. ACCOUNT NO.; ITEMS BUDGETED YES �X * NO pUANTtiY titataFisstie .. DESCRIPTION UNITPRICE EXTENDED.ALIOUNT (Confmued from previous page) $11171534 $11,171,53344 1 0 2 each 2422868-7 Gasket Armco $16.0 $32.00 44 each T3907-186 Lock washer $8.0 $352.00 24 each T3905-186 Lock washer Stainless steel $9.0 $216.00 2 each T3711-315 Sheet gasket $2.0 $4.00 4 each T3711-319 Sheet gasket S4.00 $16.00 2 each T3711315 Sheet gasket $2.00 $4.00 2 each T3712-222 Sheet gasket acc. to EN $32.00 $64.00 4 each T3711-319 Sheet gasket $4.0 $16.00 2 each T3712-225 Sheet gasket acc. to EN $73.0 $146.00 32 each T3907-186 Lock Washer $8.0 $256.00 Page 3 of 20 (Continued on next page) SubTota : $11,172,640.00 Ta Shippin : SCHEDULED DELIVERY DATE: Tots * IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. 1 hereby certify that the above items ate necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USEONLY " ISSUED By DATE RECEIVED BY DATE PURCHASE ORDER NUMBER nroarmite MT at C CITY OF VERNON, CALIFORNIA PURCHASE RE SITION ® LIGHT & P(WR LP No. 4980 DEPARTMENT: REOUESTORNAME: L HANlIMC DATE: ' 1/16I2007 SUGGESTED VENDOR: PHONE NO.: (6091990-5000 VENDOR ADDRESS: FAX IF: CONTACT PERSON: SCOTT HUTCHINSON REQUIRED DELIVERY OR SERVICE DATE: El ISH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES _X_ NO QUANTITY tuurOFIssue DESCRIPTION' UNITPRfCE EXTENDED AMOUNT 1 (Continued from pre*us page) $11172640. $11,172,640 00 .00 48 each T3907-178 Lock Washer $5.00 $240.00 2 each 2422868-3 Gasket Amoco $62.00 $124.00 4 each 2422868-1 Gasket Armco $64.00 $256.00 8 each 2422868-2 Gasket Armco $12.00 $96.00 8 each T3910-173 Lock Washer (folded) $4.00 $32.00 8 each T1253-239 Split pin $4.00 $32.00 12 each 2422R68-6 Gasket Armco $22.00 $264.00 16 each 2422868-5 Gasket Armco $21.00 $336.00 2 each T3712-314 Gasket $5.00 $10.00 8 each T3905.178 Lock Washer(fo)ded) $8.00 $64.00 Page 4 of 20 (Continued on next page) SubTotal: $11.174 094.00 Tax: Shipping SCHEDULED DELIVERY DATE: Total �r IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. M I hereby certify that the above items are necessary for the operation of this Doparynenl Department Head or Authorized Person FOR -PURCHASING Dt"',- M . :USE ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUM IER CITY OF YERNON,.CAL(FORNIA PURCHASE RE SITION ® LIGHT & P R LP No. 4981, DEPARTMENT: REQUESTOR NAME: ALLAGHAN I IMC DATE 1/16/2007 SUGGESTED VENDOR: PHONE NO.: ( 6097890-5000 VENDOR ADDRESS: FUSE FAX N: CONTACT PERSON: SCQU UTCHINSON REQUIRED DELIVERY OR SERVICE DATE: RLISH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X_ * NO OUANTUY uwroFtt:stlE DESCRIPTION }_ UNIT PRICE EXTENDED AMOUNT 1 (Continued From previous page) $11174094 $11,174.094 .00 2 each 2420212-1 Sealing E-sealing $13739.00 $27,478.00 32 each T3907-178 Lock washer $5.0 $160.00 248 each T3907-186 Lock Washer $8.0 $1,984.00 32 each T3907-179 Lock washer Nordlock $9.0 $288.00 100 each T3905-176 Lock washer (folded) $B. $800.00 4 each 2421514-2 Gasket $13.0 $52.00 4 each 2421514-1 Gasket $13.01 $52.00 4 each T3907-165 Lock Washer $3. $12.00 264 each T3907-179 Lock Washer Nordbck $9. $2,376.00 32 each T3907-186 Lock Washer $8.0 $256.00 Page 5 of 20 (Continued on next page) SubTota $11,207,552.00 Ta Shippin SCHEDULED DELIVERY DATE: Total �Ir IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby cerlity that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER IIC01197MAChrrEll C CITY OF VERNON, CALIFORNIA* PURCHASE RESITION LIGHT & P R LP No. 4982 DEPARTMENT: REOUESTOR NAME: DATE`. 6 =07 ts SUGGESTED VENDOR: PHONE NO.: .( 609)890-5000 VENDOR ADDRESS: FAX N: CONTACT PERSON: 60 91587-7790 REQUIRED DELIVERY OR SERVICE DATE: RUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.. ITEMS BUDGETED YES X * NO QUANTITY uerroFiSSUE DESGFt{PTION=' UNfT-t'AiCE;. EXTENOEOAMOUNT 1 (Continued from previous page) $11207552 $11,207,552 0 .00 4 each 2421283-1 Gasket Square gasket $13.0 $52.00 16 each 21517002- Lock Washer $26.0 $416.00 175 4 each 2421284-1 Gasket Square gasket $15.0 $60.00 16 each 21517002- Lock Washer $26.0 $416.00 176 60 each 2420792-1 Gasket $78.0 $4,680.00 360 each T3907-186 Lock washer $8.0 $2,880.00 4 each 2415046-2 Gasket $39. $156.00 32 each T3907-186 Lock washer $8.0 $256.00 2 each 2415046-2 Gasket $39:0 $78.00 16 each T3907-186 Lock Washer $8. $128.00 Page 6 of 20 (Continued on next page) SubTota : $11.216,674.00 Taw Shippin SCHEDULED DELIVERY DATE: Tota * IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM: I hereby cer ily that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER nr-n�nT.�r�n•r-on W f CITY OF VERNON, CALIFORNIA PURCHASE RE SITION N LIGHT & PqrR LP o. 4983 DEPARTMENT: REOUESTOR NAME: ___,_. ., , ..n DATE: 1I1RIiIiiI7 SUGGESTED VENDOR: PHONE NO.:( g 890-5000 VENDOR ADDRESS: bIMNS FAX /: CONTACT PERSON: REOUIRED DELIM9 SERVICE DATE: RI ICU DELIVERY OR SERVICE LOCATION; 4963 SOTO ST. ACCOUNT NO.: IITEMS BUDGETED YES _ X _ * NO QUANTITY UKTOPtsaUE DESCRIPTION UNIT PRICE 1-OnE40MAMDUNT (Continued from previous page) $11216674. $11,216,674 0 .00 20 each T3910-185 Lock washer (folded) $5• $100.00 6 each T3706-133 Gasket metal sheeted $116.0C $96.00 6 each T3910-204 Lock washer (folded) $6. $36.00 100 each 21517002- Washer $1 1.0c $1,100.00 195 60 each 2421910-1 Spacer ring S13.0 $780.00 60 each 2421910.2 Spacer ring $18.0 $1,080.00 60 each 2421910-3 Spacerrihg $19.01 $1,140.00 60 each 2421910-4 Spacer ring $22.0 $1,320.00 60 each 2420792-1 Gasket $78. $4,680.00 8 each T3910.179 Lock washer (folded)- $3.0 $24.00 Page 7 of 20 (Continued on ne)d page) SubTota . $11,227.030.00 Ta : Sh(ppin SCHEDULED DELIVERY DATE: Tota it IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REOUEST BELOW, OR SUBMIT MEMORANDUM. ! C► ! I hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE',ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER nGDdgTIIACAIT etr c r CITY -OF VERNON, CALIFORNIA PURCHASE RECI 'gL LIGHT & P R LP No. DEPARTMENT: REOUESTOR NAME: AL O'CALLAGHAN I IMC OON t>7izvv► DATE: a SUGGEST ENDOR: I PHONE NO.: ) VENDOR ADDRESS: N NEW JERSEY 08638 FAX I: CONTACT PERSON: SCOTT HUTCHI NSW REQUIRED O SERVICE DATE: RUSH DELIVERY OR SERVICE LOCATION: ACCOUNT NO.:. ITEMS BUDGETED YES * NO QUANTITY f3suE DESCRIP1TOFt — . UNIT PRICE EXTENDED AMOUNT" $11227030. , (Continued from previous page) 00 .00 1 $71.00 $142.00 2 each T370B-138 Gasket $5.00 $10.00 2 each T3712-314 Gasket $38.00 $2,280.00 60 each 2420702-1 Lock washer (folded) $5.00 $250.00 50 each T3910-185 Lock washer (folded) $8.00 $1.360.00 170 each T3907-186 Lock washer $25.00 $1,250-00 each 2420475-1 Sealing Outer seat strip 50 $67.00 $3. `350.00 50 each 2420476-1 Sealing Inner seal strip $12.00 $1,200.00 100 each 2420708-1 Lock washer $3.00 $72.00 each 134D&A4- Wife round, stainless 24 139 $16.00 $1,800.00 each 2420703-2 Retaining ring internal 100 page 8 of 20 (Continued on next page) SubTotal $11,238,744.00 Tax Shipping SCHEDULED DELIVERY DATE: Total: tk IF ITEMS ARE NOT BUDOEtED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. ,1 r" 1 CJ ' I hereby comfy that the above items are necessary for the operation al this Department Department Head of Authorized Person FOR PURCHASING.pep'; miNT USE ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER CITY OF VERNON, CALIFORNIA PURCHASE RE SITION ® LIGHT & PR LP No. 4985 nCID60TAICUT• - REOUESTORNAME: - _-__.. _..... DATE. - 1/iR171V17 SUGGESTED VENDOR: PHONE NO.: ( 8 0_5000 VENDOR ADDRESS: FAX A: CONTACT PERSON: REQUIRED DELI SERV E DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO STRUSH. ACCOUNT NO.: ITEMS BUDGETED YES �_ * NO QUANTITY' uwrav IssuE DESCRIPTION `� _ �:.. UNIT PRICE E(TE?�EDAMDUNi (Continued from previous page) $11238744. $11,238,744 1 0 .00 100 each T3905-165 Lock washer (folded) $8. $800.00 50 each 2420475-1 Sealing Outer seal strip $25. $1,250.00 50 each 2420476-1 Sealing Inner seal Strip' $67.0 $3,350.00 50 each 2420477-1... Sealing Seal strip $67.00 $3,350.00 50 each 2423340-1 Sealing Rear seal strip $75. $3,750.00 100 each 2420703-1 Relaining ring internal $34. $3.400.00 50 each 2420702.2 Lock washer (folded) $37.01 $1,850.00 20 each 2420490-1 Lock nut of steel $2.0 $40.00 174 each 2423585-1 Sealing blade 1 $120.0 $20,680.00 6 each 2424155-1 Sealing $1.0 $6.00 Page 9 of 20 (Continued on next page) SUbTOtaf $11.277420.00 Ta : Shippin SCHEDULED DELIVERY DATE: Tot. : * IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM � LI I hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE�ONL'Y; - ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER r1r=0A0'nAt:h1T tll C C *.bF VERNON, CALIFORNIA DEPARTMENT: PURCHASE RESITION LIGHT & PJPR LP No. 4986 NAME: DATE: SUGGESTED VENDOR; PHONE NO.. ( VENDOR ADDRESS: FAX 0: CONTACT PERSON: REQUIRED DELI E VI DATE: DELIVERY OR SERVICE LOCATION: RT ACCOUNT NO.: ITEMS BUDGETED YES X_ tk NO QUANTITY uNrr oF tssm DESCRI� T10Nic�h UNIT PRICE EXfEtVOmAMOUNT 1 (Continued from previous page) $11277420 $11,277,420 .00 6 each 2420137-1 Lock plate blade 1 $629.0 $3,774.00 174 each 2423582-2 Seallng Blade 1 $38.0 $6,612.00 34 each T3905-178 Lock washer (folded) $8.0 $272.00 296 each T3907-178 Lock washer $5.0 $1,480.00 22 each T3905-176 Lock washer (fokied) $8.0 $176.00 12 each 21517002- Lock washer $18. $216.00 162 Y0 each 2420211-1 Sealing Seal strip $237.0 $4.740.00 104 each 2420534-1 Sealing Outer sealstrlp $74. $7,696.00 104 each 2423255-1 Sealing Inner seal strip $75. $7,800.00 2 each A1551860- Plastic foil $47.0 MOO 1 1 Page 10 of 20 (Continued on next page) SubTota : $11,310,280.00 Tay: Shippin : SCHEDULED DELIVERY DATE: Toes 1k IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby cenity that the above items are necessary for the operation of this Department Departmeni Head or Authorized Person FOR PURCHASINGREPAR7MENT.USE ONLY L. CITY -OF VERNON, CALIFORNIA& PURCHASE RE SITION LIGHT & PaR LP No. 4967 DEPARTMENT: REOUESTOR NAME: QQNA1AN ! I IC DATE: 1/16/2007 SUGGESTED VENDOR: PHONE NO_: ( 609f690-rj000 VENDOR ADDRESS: FAX 0' CONTACT PERSON: scpTj UTCHINSON REQUIRED DELI ERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X tk NO QUANTITY.- UWOF . _' DESCRIPTION UNIT PRICE FXTER15 DAMOUNT 1 (Continued from prevbUS Page) $11310280. $11,310,280 00 •00 4 each A0721170- Paslelubricanl $137.00 $548.00 185 40 each 13408044- Wire round, stainless $3-00 $120.00 139 4 each A0721230- Thread sealing Loclite 542 $61.00 $244-00 55 $13.00 $104.00 8 each A1551160- Tape 14 A0721230- Threadlocker Loctite 275 $77-00 $154.00 2 each 62 2 each A0721230- Loctite243 $77.00 $154.00 61 40 each A1556846- Emery cloth, no.100 $3. $120.00 35 $3.0. $60.00 20 each A1556846- Emerypaper 36 20 each A1556846- Emerycloth $3.0 $60•00 37 40 each A3496860- Cleaning cloth $4.0 $160.00 41 Page 11 of 20 (Continued on next page) SubTota $11,312,004.00 Tax: Shipping: SCHEDULED DELIVERY DATE: Total: �c IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. � 1 I hereby caddy that the above items are necessary tor the operation of this Department - - Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER nr:DADTl =Krr Ell C CITY OF VERNON, CALIFORNIA* PURCHASE RE Q SITION L I.. _ LIGHT & PC�R P No. 4988 DEPARTMENT: REOUESTOR NAME: DATE:/16/2007 SUGGESTED VENDOR: PHONE NO.: ()90-5000 VENDOR ADDRESS: FAX A: CONTACT PERSON: REQUIRED DEU E VI DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES _X * NO QUANTITY. L"YOf, uE OESCRIPTIOFIa ."` UNIT PRICE EXTENDEDAL40UNT (Continued from previous page) $11312004 $11,312,004 1 p .00 10 each A1556860- Wall brush mottler S2.0 $20.00 12 4 each A1551160- Masking tape $4.0 $16.00 12 30 each A8212962- Deposttbox $9. $270.00 21 .70 each A8212962- Depostt box $5.0 $350.00 22 30 each A8212962- Depostt box $7.0 $210.00 23 98 each A1556990- Assemplyglove $11.00 $1,056.00 . 472 2 each A1551176- Marking paint Stylmark $21.0 $42.00 31 10 each A2441176• Marking pert Arlin 400-XF $10.0 $100.00 48 2 each 13108011- Gasket sheet $612.0 $1,224.00 2 6 each 17108D01- Gasketsheet $81.0 $486.00 143 - Page 12 of 20 (Continued on next page) SubTota : $11.316,778.00 Ta : Shlppin SCHEDULED DELIVERY DATE- Tot h IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. 1-_a O I hereby certify that the above items are necessary for the operation of this Department Department Head or Aufhorized Person FOR PURCHASING.DEPAA7MENT USE ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER tr, CITL OF VERNON, CALIFORNIA PURCHASE RE SITION LIGHT s PCVR LP No. 4989 DEPARTMENTr REQUESTOR NAME:. , , ,, , ,, , ,,," DATE: 111AIX1107 SUGGESTED VENDOR: PHONE NO-:( )890-5000 SIEMENS VENDOR ADDRESS: FAX Y: CONTACT PERSON: REQUIRED DELIVERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES �_ :IrNO h y,' QUAM�T.Y';•.'tAvtt OF t65VE - DESCRIPTION ' UNIT PRICE --. FXT17JbED AfgOtA!If 1 (Continued from previous Page) $11315778. $11,315,778 0 .00 50 each A1551160- Cleaning tissue $25.00 $1,250.00 11 40 each A1556950- Refuse sack $2.00 $80.00 38 20 each A1554944- Battery $1. $20.00 3 20 each A1554944- Battery $1.0 $20.00 8 200 each A606E151 Wire Bundlers 390 x 4,7 T50L $1. $200.00 6082 4 each A6D6E075 Electrical tape $3.0 $12.00 i 4113 10 es T3704-108 Point gasket $3• $� 16 each T3725-179 Gasket $2.04 $32.00 10 each T6102-101 Union nut $1.0 $10.00 4 each T6313-101 Plug for pipe coupling $2.0 $8.00 Page 13 of 20 (Continued on next page) SubTota $11,317,440.00 Taw Shlppin : SCHEDULED DELIVERY DATE: Tota * IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REOUEST BELOW. OR SUBMIT MEMORANDUM. I hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE ONLY. ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER - r1FDppTAA{•�ITCIIC { f CITY OF VERNON, CALIFORNIA PURCHASE. REO SITION LIGHT & PCOR LP No. 4990 DEPARTMENT: REOUESTOR NAME:O'CALLAGHAN GONAL I C DATE: 1/16/2007 SUGGESTED VENDOR: PHONE NO.: ( 609II890-5000 SIEMENS VENDOR ADDRESS: FAX /: CONTACT PERSON: 6091587-7790 REQUIRED DELIVERY OR SERVICE DATE: RUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES _X * NO QUANTITY uNrr or ISSUE DESCHIPTIO UNIT PRICE "EXTENDED AIrlOUw 1 (Continued from previous page) $11317440 $11,317,440 0 .00 4 each T6815-102 Coupling $5. $20.00 4 each T6815-802 Coupling d 8, 114 npt $6.0 $24.00 4 each T6820.102 Pipe coupling, straight $11. $44.00 2 each T6830-101 Union $7. $14.00 2 each T6870-101 Tee coupling $18.0 $36.00 10 each. " T7021-101 Ferrule $1.0 $10.00 6 each 1CSA8136- Nut $90.0 $540.00 1 6 each 1CSA8135- Nipple $28.0 $168.00 1 2 each 1CSA6133- Coupling $12. $24.00 1 j 6 each 1851523.-1 Nipple $16.0 $96.00 Page 14 0120 '(Continued on next page) SubTota : $11,318.416.00 Ta Shippin SCHEDULED DELIVERY DATE: Tota . * IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. J b 1 hereDy'certity that the, above items are necessary for the operation of this Departmerd Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE ONLY i CITY..OF VERNON, CALIFORNIA� PURCHASE RE SITION LIGHT & P R LP No. 4 9 y l DEPARTMENT: REOUESTOR NAME: L ALLAGHAN! 1MC DATE: 1/16/2007 SUGGESTED VENDOR: ' - , PHONE N0.:1 609h890-5000SIEMENS VENDOR ADDRESS: FAX tl: CONTACT PERSON: SCOTT HUTCHINSON 609 REQUIRED DELIVERY OR SERVICE DATE: RUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X * NO WANTTTlf 1 VfatoF tssuF 82 DESCRIPTION . UNIT PRICE MENDED AM IDUNT` (Continued from previous page) $11318416. $11,318,416 1 00 .00 . 8 each 1852416-1 Adapter M12 x 1,5 -RI/4' $31.00 $248.00 4 each 1852417-1 Nippy $28.00 $112.00 4 each 2035928$ Quick goupling male $107.0 $428.00 4 each 2035929-2 Adapter female-male.OSPP-NPT $29.00 $116.00 4 each 70006131- Pipe Connector $21. $84.00 A 4 each 70006131- Pipe Connector $21.0 $84.00 6 2 each 70OD8131- Pipe Connector $21.0 $42.00 C 2 each 70006131- Pipe Connector $21.0 $42.00 E 4 each 70006131- Pipe Connector $19.0 $76.00 D $6.0 $48.00 8 each 1CSA8259= Hose 1 Page 15 of 20 (Continued on next page) Sub7ota : $11,319,696.00 Ta Shippin : SCHEDULED DELIVERY DATE: Tota IF ITEMS ARE NOT BUDGETED, r -A _ i REQUEST BELOW, OR SUBMIT MEMORANDUM. I I hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USE ONLX L ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER TIGPAATAAFAfTCII.0 - CITY AF.VERNON, CALIFORNIA PURCHASE RE SITION LIGHT & P(@R LP No, . 4992, DEPARTMENT. REQUESTOR NAME: -rAT , AnIJAK, , ikir• I DATE'. 1 /1 ROW7 SUGGESTED VENDOR: PHONE NO.: VENDOR ADDRESS: FAX 1: CONTACT PERSON: REQUIRED DELI ERVICE OATS DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED QUANTITY UNnofissue 1 Jf DE$CAIPLION . , .. c r•. 1 (Continued from previous page) q each 1CSA8263- Coupling 1 4 each 1CSA8261- Coupling 1 4 each 1CSA8262- Coupling _ 1 40 each 1CSA8130- Sleeve 1 10 each ICSA7988- Hose 1 8 each ICSA8257- Gasket 1 16 each 1CSA8258- Gasket 1 10 each 2423623-3 Sealing ring C-seal 28 each T1873-538 Hexagon sockethead screw large clearance 68 each T1665-542 Hexagon head boll page 16 of 20 (Continued on next page) YES XNO UNIT PRICE EXTENDED AMOUNT $11319696 $11,319,696 0 .00 $6.0 $24.00 t $5.0 $20.00 $4.0 $16.00 $�. $280.00 $6.01 $60.00 $16.0 $128.00 $22.0 $352.00 $155.0 $1,550.00 $42.00 $1.176.00 $156.OP $10,608.00 SubTotal: $11,333,910.00 I SCHEDULED DELIVERY DATE: I Tota �C IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM_ tity that the above items are necessary for the operation of this DepanmerM Department Head or Authorized Person FOR PURCHASING I; P,.AATMENTUSk ONLY-'` ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER CITY',DF VERNON, CALIFORNIA0 PURL AS $ (�{(SR I . No LP ON 3 pC� 499 DEPARTMENT: " REQUESTOR NAME: N / IMC DATE: 1f 1612007 Lap SUGGESTED VENDOR: PHONE NO.: (609/890-5000 VENDOR ADDRESS: 9-N6iT4P:6i1 AAN-v+IAy--j=iAM FAX A: CONTACT PERSON: SCOTT HUTCHINSON REQUIRED DELIVERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X_ * NO QUANTITY 1xeTOFSSM DESCRIPTION UNIT.PRICE tiF7(TENOEDAMIIUNT 1 (Continued from previous page) $11333910. $11.333,910 00 .00 80 each T3907-178 Lockwasher $5•430 $400.00 12 each 2021278-3 Gasket for flange connection $51.00 $612.00 12 each 2021278-2 Gasket for flange connection $29.00 $348.00 16 each T2804-126 Hexagon nut $2.00 $32.00 16 each T162"95 Screw, steel $17.00 $272.00 16 each T2804-124 Hexagon nut $4.010 $64.00 16 each T1624.644 Hexagon head screw $9.0 $144.00 8 each T3717-316 Gasket $86. $688.00 16 each T1622.630 Hexagon head screw $3. $48.00 6 each T3717-465 Gasket $99.0 $792.00 Page 17 of 20 (Continued on next page) SubTotal $11,337,310.00 Tax Shipping SCHEDULED DELIVERY DATE: Tota * IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. 1 hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT US�LY. - .� .•;�� ; �;�;.:1,;;? ISSUED BY DATE RECEIVED BY , DATE PURCHASE ORDER NUMBER T1t=P�t7T11ACt,ITCJ1 � CITY OF VERNON, CALIFORNIA PURCHASE REO ITION ®' LIGHT POR LP No, 4994 DEPARTMENT: - REOUESTOR NAME: DnNAl DATE' 1/16/2007 SUGGESTED VENDOR: PHONE NO.: 90.5000 VENDOR ADDRESS: FAX k: CONTACT PERSON: REQUIRED DELIVERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SO -TO ST. ACCOUNT NO.: ITEMS BUDGETED YES �— * NO QUANTITY t>HrF oP r9SUE DESCRIP.TI01;1'{ �'- ;. dYTJl UNIT PRICE EK'tENDEO AMOUNT 1 (Continued from previous page) $11337310. $11,337.310 00 .00 16 each T1822-676 Hexagon head screw gaNantred $5.00 $60.00 2 each A0721170- Paste lubricant $137.00 $274.00 185 2 each A4431160- Teflon band $2.00 $4.00 63 2 each W6861110 Wire brush $4.00 $8.00 .3 2 each All 551160• Masking tape $4.00 $8.00 12 2 each A1551160- Tape $13.00 $26.00 14 2 each AW6 075 Electrical tape $3.00 $6.00 4113 8 each T6815-802 Coupling d 8, 1/4 npt $6.00 $48.00 8 each 1852417-1 Nipple $28.00 $224.00 6 each 1852416-1 Adepter M12 x 1,5-111/4' $31-00 $186.00 Page 18 of 20 (Continued on next page) SubTotal: $11,338,174.00 Tax: Shipping: SCHEDULED DELIVERY DATE: Total W IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. tity that the Ab. items are necessary for the, operation of this Department Department Head or Authorized Person FOR PURCHASING DEPART—m- H FUSE ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER J . nr-n�r�r��n.•rn r� CITY OF VERNON, CALIFORNIA PURCHASE RE ITION LIGHT & PCR LP No. 4995 DEPARTMENT: REOUESTOR NAME: nnNAI DATE: 1 /16I2007 -AP SUGGESTED VENDOR: PNONE NO.: ( 609)890-501DO VENDOR ADDRESS: FAX y. CONTACT PERSON: REQUIRED DELIVERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO: ITEMS BUDGETED YES X_ * NO QUANTITY "• um OF ssuE DESCRIPTION , qj'` `;.i a ; - ,,,.1 UNIT PRICE EXTENDED (Continued from previous page) $11338174. $11.338,174 1 00 .00 6 each 2035928-6 Quick goupling male $107.00 $642.00 6 each 2O35929-2 Adapter female -male, BSPP-NPT $29-00 $174.00 6 each T3725-179 Gasket $2. $12.00 50 each 1CSA8386- Teflon hose $5.0 $250.00 1 50 each 1CSAB253- Spring $3.0 $150.00 1 40 each T8102-101 Union nut $1. $40.00 40 each 70005795- Adapter $39.M $1,560-00 B 8 each A6831260- Bycotest C5 Cleaner Dangerous Goods $25.0k 1 $200.00 4 10 each A1551170- Rust all WD 40 Dangerous Goods $21. $210-00 68 8 each A6831260- Bycotest RP20 Penetr, coloured Dangerous $25. $200.00 2 Page 19 of 20 (Continued on next page) SubTota $11,341,612.00 Tax' Shipping SCHEDULED DELIVERY DATE: Total k IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW. OR SUBMIT MEMORANDUM. - f - 1 hereby certify Mat the above items are necessary for the operation of 'lhis Department Department Head or Authorized Person FOR, PURCHASING DEPARTMENT USEONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER f1FDaDTl1ACAIT CII C carry OF VER :.'A Gtl'j &TOW PLEASE INVOICE IN DUP.LIC 124]�Li M 001 iN IA II Av I m A f p 0 7 200? T 0 ATTN: V I I �j:f Lai N D 0: 0 • '?00 FOB VERNON, CALIFORNIA UNLESS OTHEAV.11GE SPECIFIED BE' Oti. "FAREH' uUll-E. CLOS-_513 014 FRIDAYS � DEPARTMENT FlIiOUlSIT;3N TERMSj PLUS ------ ---- - - ----------- - - 'ITEM NO. OuAmm ORDERED tm ASM STOCK NO. DESCRIPTION OTY' OECD TAX uNrl PRICE EXTENDED AMOUNT C., 4 '-4 V ol" A :7 CONFIRMING ORDER: -ACCOUNT NUMBER PROJECT AMOUNT----"" CITY OF VERNON. CALIFORNIA PAYMENT APPROVED DEPT. HEAD OR AUTHORIZED REPRESENTATIVE DATE PURCHASING AGENT / PLEASE INVOICE IN DUPLIC y�G !`- n , (t. 4 E�j.;; ' 4304 5umu 14 Avenue • Vemon, (A 90058 n.• f 1 • �ATI10.2�'-R-f - VlNOORNG;:I - P . , •. i' l�i 0 ATTN: •, V • -- tl I:i � +: I. I-r [.'�.,., ,; KJ r" %c-J. `: (-1�1F.!'''� �iJ' N FOB VERNON. CALIFORNIA UNLESS OTHERWISE SPECIFIED BELO d. VIA REI IOJSE GLO b 1i 01.1 FRIDAYS DEPARTMENT REOUISITION NO. - DELIVERY DATE - TERMS I PLUS FREIOFIT F.O.B. ITEM NO. OVANTITY ORDERED UNIT ISSUE STOCK NO OEBCRMTtpN - Off' REM) TAX UNIT PRICE EXTENDEDAMOUNT iJ: ..:. , fo:.t t .. • !: ��. .... - l.i �:`'�1-� . , _ ram. � ... _'J: CONFIRMING ORDER: - ACCOUNT NUMBER PROJECT AMOUNT CITY OF VERNON, CALIFORNIA PAYMENT APPROVED BY:: GATE DEPT. HEAD OR AUTHORIZED REPRESEN7ATIWk--7.l A PURCHASING A"N1 •' -, PLEASE INVOICE IN DUPUC -- - { �" • ' a ITV 01 JI"R. �4� �y• y' Ir cn I I r(1� rrul a 1I ! Y k. i ( I%0.1 1.1}1{i 1-:I:I:,\IavtiN.W -ua::, _Iir,ir) •�:.i:- 1f30.S St1Ats Fe Awnue * Vernon, (,A 90058 I ". (323).533-Ul1 . 8 t • ... _. _ OA1'II;}21C+151/{I' VlNDORNO.:i 1'_:" P •:... ,. _ _ T •.: _ - O ATTN: V •:_(±;:'ic.:•I'i�-'.'.%`-_i'Ii:FE I}E.i.i•vi;I Y'....F-_ f'� N •(Lt:'�>_tt }I"?F11.+'i1 id!=:Yi :.I: - D• ` ft FOB VERNON, CALIFORNIA UNLES:i OTHERWISE SPECIFIED BELOW. iV ,"FHOUSE C CYSED ON FRIDAYS .DEPARTMENT I REOUISRION NO. I DELIVERY DATE ' : TERMS PLUS FREIGHT i F.O:B. ------ -------_...... — tax ORROE 0 UNIT 18SWE STOOK N0. DESCRIPTION RECD TAX UNIT PRICE EXTENDED AMOUNT 'L'ii .. "1 ... .. ..-_.. + � t]r-�`. .. -- :'I:iI.!i-t �'�..1' '�.:,Y is • �_ .. :1. ,. -:: ('. ` • 1 ?.3 t it :".71._! 4i•:. r.,t lC ;r.r c ir: • 'i .•r,1.i -! <i,c. ! �i �i. F: qIC =[Ii_}•: - . ,.. ....... .._ F it - ..,: +•i\...s,r +•T::._,-il:.t r.a.. t,rfE C- ! Et ! i ,. .. - ... - . . I•:_?.!(';_. 'r-I :+i_ ii}'Ti' , , rill . ,'•I"IJI::,::Ll cF; '11i`f!,: ar:..;:a'.t F±11.f: i !....• :. r1:, _- ,. it � T,�•� .. I::i,.,•-r'r + , CONFIRMING OROER: ' ACCOUNT NUMBER PROJECT AMOUNT CITY OF VERNON, CALIFORNIA DEPT. HEAD OR AUTHORUZED REPRE6EMATN!(- - PURCHASING AGENT p1crr .9: ik. I.Jt;ll l 1'tltGt I1 i;,Lyy°r'I 4.105 Santo Fe Avenue • Vernon, CA 90058 .(:u:Sl tieJ!eNlt OA111!il''rE..:i.' VENDORNO.:, I'•','`. PLEASE INVOICE IN DUPLIC NC IN O ATTN::: R FOB VERNON. CALIFOFNIA UNLESS OTNCR'WISE SPECIFIED EGLOIA' 4^,.i?r!iC=iiSE C�i SF.D C>N FRIDwYS --_..--'-- _..._..-- --.... __......._..-- --------------- -------- ' DEPARTMENT - _ _-- REQUISITIONNO. DELIVERY DATE TERMS PLUS FREIGHT i F.O.B. 1 REM NO. OUANTf . ORDERED UNIT - (UNIT STOCK NO DEBCRIPTON On' - REC'D TAX UNIT PRICE EMNOED AMOUNT i CONFIRMING ORDER: CITY OF VERNON, CALIFORNIA PAYMENTAPPROVED BY:: DATE _ DEPT READ OR AUTHORIZED REPRESENTATIVQ . PUN(,HA91N0 AOliN1.:%a�'�.•,(!G`- RI ..�.. �••.•.•� i, /1 n,/ I. r/+.r a n,-Tr rrl•1 T/, t1r In I�„wl.,.,� •+r�T .. .. �ti-. CTIVY olk IAJ I I n ll()Wlnllt -430 Unts Fc Avcnut o Vernolt. CA 190058 - (323) S93.981 I VENDOR NO.:. PLEASE INVOICE 114 OUPLtC( -T4 p No H P T 0 ATTIC.`. E N FOS VERNON. CALIFORNIA UNLESS OTHERWISE SPECIFIED !.lEL'-IVV. .111:114OLISL �-Lc--iwU J!J 1 Hlli !S DEPARTMENT FlEautsmom NO. DrUVERY DATE TERMS i PLUS FREIGHT j F.O.B. ---- ------ UANT ORDERED Nil ISSUESTOCK NO. DESCRIPTION CRIPTION Q. AETVD C TAx UNIT PRICE EXTENDED AMOUNT -jv Tit. J., f DIE 2Y. I V 1413. pl" IT 2,( 1-Ni, R': j - q P;- CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT ------- I P or m CITY OF VERNON, CALIFORNIA PAYMENT APPROVED BY.: DATE DEPT HEAD OR AUTHORIZED REPRESEII,"! PURCHASING AflF.Nf I .•Z;FrA I ..pry ,1,CT f Ne: 4305 savolk Ile' Avcnuc - Vernon. CA 90058 .(323) SK.1-1191 I v .1: r t- I,!.. PLEASE INVOICE IN OUPLIC H 1311: P T 0 ATTN: FOB VERNON, CALIFORNIA U14 LESS OTHERWISE S-Pr CIFIFD levAREHOU-SE "':!—r 'GEO ON FRIDA"V'S DEPARTMENT REOUtSITIONNO. DELIVERY DATE TERMS I PLUS FREIGKT FOB. ITEM NO.' QUANTITY �ANTITY ORDERED UNrT I ISSUE W STOCK NO. DESCRIPTI ON OTY RC.D TAX UNIT PRICE EMENDED AMOUNT a -7 IV I i -I Ic A L I r.- 411 -2 tit I la A A CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT' d6 7 CITY OF VERNON, CALIFORNIA PAYMENT APPROVED DATE__ OEPT.HEAOORAUTHORIZEOREPFtESENTklr4g: . PURCHASING A0C I r 4",5 &mta FW Avenue • Vernon, CA 90058 FDA" I;12 VENDOR NO.;1 1 PLEASE INVOICE IN OUPUC i RL e —' w 1O i" ,u•:;r}! is , . • i ! i ' P.; ° ATTN: R • J 1 1 FOB VERNON. CALIFORNIA UNLESS OTIF-PWiSE SPECIFIFU :LitSEC OFI ;!t DEPARTMENT I REQUISITION NO '. DELNERY DATE TERMS PLUS FREIGHT F 0 8.� NO. ORDER D II ISSUE. STOC!( NO. DESCRIPTION - REG D TAX UNIT PRICE EXTENDED AMOUNT is •: i _.-;f.'... -. .. il::-Y .. . . 4 .. im .. .. 1 ... CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT CITY OF VERNON, CALIFORNIA PAYMENT APPROVED BY:: DATE DEPT. HEAD OR AUTHORIZED REPRESEN7ADVIE I! DATA ' 1 t PURCHASING AGEN7 �,.� OF ,li s PLEASE INVOICE IN DUPLIC,,, { F'1 `•-D D <; tpp �s t s Is(A r' '• �'}! .4305 Swnta Fe Aveauc a Vcrnun, CA 90058 `��'' to a• t .: (323) 583.BRI1 s 1 N t.r!. '!. r• I 1 CDAF O ATTN: O .Fiiiv: i !_ ! 14 _ !•il-a•1 t:.F: s;!. : p� FOB VERNON. CALIFORNIA UNLESS OTHERWISE SPEC1; iF0 Ecl. W. ':-;ARE-'iGUSF ._Lr_.3ECi 01I FRIDAYS -DEPARTMENT ! REOUISRIONNO. DELIVERY DATE - TERMS ,PLUS FREIGHT 1 F.O.S. i r ITEM NO. OUAMT' ORDERED UNR ISSUE STOCK Na DESCRIPTION RED. TAX UNIT PRICE EXTENDED AMOUNT ... 'v:'v... _... . �'. S•11 fa_ l:�:i='i_li•�Li . ...i: .. _; 'Lfl s }-� L_ _ .. "�!.-. _�I_ • ! ..lt.l j Ijr.j ; , I ,_ _'.:+. - . II !} .,. ... s T:_•.:1�7L: �;�' ... (:!..:;"Itd(a E2 .-. .'�iC£. irr'. 31j. i•l:. .-s7!'-._1-:ri .., _ .. �1.•. :'l.: :J ice'.!_:':'• CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT 1 ✓ �j - U � f CITY OF VERNON, CALIFORNIA PA'/MENT APPROVED BY:: DATE DEPT. HEAD OR AUTHORIZEO REPRESS-N—TW%o It, j;'' 01 y 01 V -c Avenuc •Vernon. M5 Santa I CA 90058 VENDOR NO.: PLEASE INVOICE IN DUPLIC s H P T 0 ATTN: FOB VERNON, CALIFORNIA UNLESS CITHESIXISC- SPE.ClAE-0 SEI-Ow. I— (JiN FFIDAYS ---- ------ ---------------- ---- --- I - - DE�MffiTEI�T REQuiar"ON mo. DELIVERY DATE TERMS PLU,S--iRi Fwif-T - iWos- 3 -- -------- - -- - -- -------------- ITEM NO, OWNTTTV RFO ORDERED UNIT ssue STOCK NO. DESCRIPTION CITY. 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ACeounl Code VMaor1 K M.nuf D Nameine Vendq lMm mu~UnIi UnK of Mown Coll mum Six rder Ow Ouenlhy on Wnd i W.nhouse N.m. 09 Sealy xtuata stock LocaOon NR6 Notal T—bt. 1Y7Nr IremarF) 10083581 A —Sliding sea euuamr nB seWY aduala Gm P.a en t0083581 In9 aeeN adualm 3 311.76 W000912 O-Rino 041i Gn Packs eta 1DODO912 O-Rin $ 26.7% l 0-111h. NLS. l0pDp923 O-Rin QRm Pack a 10000923 QRi IT 1.90 1 O-Ri - NL5d 100009M QRin O-Nln ParA 100o0B39 QRi $ 18.92 1 QRin NL5d ESt1A-0088 - ' r e dire 6-1 adjuslaGe Iravtl clop IOr Pneumaf .dvalor AdUWOr Ito Hwkine 1`—m zl ES IA-aO88 Adu . Ilo - 111f 1,15.00 3 AUYater sb H 121-S 156 B. 1010J01201- mA UNITED ELECTRIC PRESSURE SWITCH PRESSUREONTROLS SNITCH C INC. H121-S1Sfi"010-M201- EUA6 PRESSURE SV.ITCTT 3 589.25 1 PRESSURE SWITCH DL6' H122S13/13- M202-MA96 UMTEO ELECTRIC PRESSURE S%TCHSe1 'IT.SPSI PRESSURE SWITCH CONTROLS VX. H122-SI.B.- M202-MI16 PRESSURE SNITCH 3' 636.So 2 PRESSURE SWITCH DL6- IB1681B1 1/782150 STEM PACKING - PRESSOR SM— ET PACKING GASKET CCI1.186191 Ca 19292160 PACKING GASKET 3 15.00 S 00 10. I PACKING GASKET KL2' KL2' 73228868. SEAT RING SEAT RNG CCI >3228868 EA $T RIG 3 2115.00 1 SEATRNG. KL2' 1332775,1 85027506 STEMPLUGASSEMBLY ACTUATIXi01ARIRAGM AIY19lT ACTUATOR CCI CG 13327754 85027506 - 91TlkRD ACTUATOR S 1,585.M 3 175.00 1 T 9tFMPlO skOMkT ACTUATOR KL2' KL2' 85027522 PACKING CCI a$027522 3 30.0. 3 KL1' 83OS001-2 CEMS 6'SEi 0F7 CISCO 830SM-2 3 259AO 8 2 2 CEMS- 22000019 CEMS 1., L5G0 22000019 3 121AO t OL2e' CEMS 22000036.19 CEM$ CONTRMLOGIK CISCO 22000038-19. 3 WAIT I 1 1. OL2 CEM$ e0000013 CEMS 79VDC. 9.BA - CISCO 40D00013 3 159.00 1 OL3' CEM$ 95000011 450000/2 CEM CEMS $ 120 VAC.1N REIAY,OPoT 2/VOG, l0A Cisco CISCO 45000011 - 45000012 f 3e AO S 20?0 T 1 OL2b• OL2W CEMS CEMS 82000001.1 CEMS VALVE 2.2 LAIN CISGO 82000001.3 S 3M.00 2 OL2d2 CEMS 82000001.7 CEMS 1-IDLMIN CISCO 820OW014 S 308.00 3. 01-2d3' CEMS 82000003-5 C£MS NOVALVE 55 WIN CISCO 820000015 'S 228A0 1 OL2e• CEM$ ]r e1 n 6701000a CEMS .09CV.000IRIFICE CISCO 82010004 3 102,00 1 OL20' CEMS El Schedule 21(d) Spare Parts 1 2 l 1 4 61 6 7 8 9 10 It fi 13 14 1S 16 hmm Number 9 tem ya Item Deacri W, p It.. lyw - Account Cod. mufact a ManuhclVre v Meme Vendor Item Number Unit of Measur Untl Coat mum Scat adn Ow Ouenlity on Nand WereMuss Wme Slxk Location Notaa (Y1811 Tlyl trc arx) 82010019 GEMS 172 ORIFICE. IR'TUBE GISCD 82010019 $ 105.00 1 OL2i CEMS 82020009 CEMS 2/VOC-190RIFICE CISCO 8202009 S 66.90 1 012a' CEMS an20NS CEMS ISMU ORI. SSCV. 24VDC CISCO - 82020048 S 100.m 1 .OL2e' CEMS 81020001 CEMS IASPDT I C15C0 I1020001 S 135.00 1 OL2a' CEMS 81020004 GEMS 0100 PSI. SPOT CISCO $1020004 1 99.70 1 01-2a' GEMS 111020005 GEMS P250 PSI SPD7. C15C0 81020005 S 99.70 1 OL2a' CEMS 820,0026 GEMS .281 ORIFICE. 112 TUBE CISCO 02010026 3 - 101.00 1 OL2e' CEMS 22000311d GEMS ENET IP Comm CISCO- 22000311,1 3 150.00 1 OW GEMS 03000019 - G M SCRUBBER.NH3 CISCO B30DODIS 1 250.00 1 111 6 ORS. ICE 835MOOZ GEMS - 5 N FILTER. 99.99% 0.1 UM OR CISCO - 835DONZ S 5.85 6 l4 66 OL2' CEMS 83500070 .CEMS S ax FILTER HOLDER NEON CISCO 83500070 S 4.ZS 6 20 33 CEMS - 83S00076 CEMS imarya .. 95X REM CISCO B3500076 S - 12.20 6 20 24 OL2' CEMS 03S00076 CEMS PAflTI 99.99%10 CISCO 83500070 $ 5.30 6 20 27- OLM' CEMS 53003014 CEMS gI Ml CLOSE •IOSF CISCO 53003014 $ 27.80 0 2 01-2a' CEMS 111001031-2 CEMS 3400 SERIES CLSCO 81001037.2 1 214.00 1 OL21 CEMS 62000008-3 CEMS LMIN - CISCO 92000006-3 $ 5600 1 OL2h' CEMS 8200WO&5 CEMS LMR CISCD 82000005-5 S 56.00 1 0L2E' ICEMS 954BK43 .004 SNm ato k SS 316 1Tx 10W Shim Stock CARR SUPPLY 9548K43 Shim Slocki S B2.36 1 Shim Stock - 95481444 .005 Shim aloct SS 316 12'a 100' Shim Stock CAM -. SUPPLY 9Se8K44 Shim Stock S 85.62 1 Shim Stock 954SK45 .007 SNm Nock SS 316 ISN. Sloth CARR SUPPLY - -" 9548K45 Shim Stack S 90.66 1 - Shim Stock 9546K46. .010 Shim aloe SS 316 12'a 100' SNm Slack CARR SUPPLY 9548K46 Shim SIOCk S 106.11 1 Shim Stock - ]4 e1n Schedule 2.1(d) Spare Parts + - 2 ] a s e 7 e 9 to is 1 12 17 ie is 16 M. Number System .Item Da.crlptlon Item yW • ncaIFVarpod Accbunl a Manulacluro Vendor Re. Number Unh al UAK Coat un m m rite, 0...thy W—ho— St. Notes Taubla fY1N Code p Nama - Measure SW Wa on Hand Name Location trnmarXl .OtS Shim.lock CARR 9548K47 SS 316 12'. 100' Shim SIOck - SUPPLY 95se1(e7 Shim Stock 3 115.55 + SW. Stock - .020 Shim Nock CARR 9540K4e SS 316 12% 100' Shim Stock. SUPPLY 951OK28 SXbn SIml, 3 130.11 1 SNm Slo k .025 SNm flock - CARR - 95181<49 SS 01612-e too' SNm SIo} ISUPPLY I 95e8K49 StimSuxkI i 158.78 1 1 1 '. SNm SIOY 2112 Gycedn fifled 704 SS MCMASTER, - 40e8K3 with bottom Gauges CARR Gauges G.g.. AB51215 eL` u-fidin s 0.,00 Psi SUPPLY aOa M3 G u 3 - M.65 J G FR2 Prcssi,re relief vent Pres CARR Preu Pre 1095K21 114PFT made relkfsmid SUPPLY IO95K21 relief vent 3 6.32 7 rcfiel vanl FR2 CARR - 1095K71 Steel Gress F80n 111 Frti SUPPLY 1095K31 FiOM 3 6.Se 20 Fittln FR2' ump v ve 6 I pas —9 umP mp OW 150 wubber -tue Mural OVU150 velve i 27a.50 J u t. G1-251A5s Ammon..mut., to -mite, uah.,,:ne1 M&Ram -151"' amide, lralib. 3. 1695.00 1 Irans,rille, ILI J1d-11 - Ammonia CaeGMlon K9 Cafib. Kit Md-Ram a05961 _ i 3 750.00 1 CeSb. M ILI 01-25205MTR CombufiEte Nneder0ar1.m81e, IrannmY - MAR— I -2520SMTR - Ira, M., 3 I.M5.00 - 1 V•nsmkter ILI JIA-20 LLL om u pas caliWlion kitIe Calib. Kit Mil -Ram 1 409255 Celib. Kit 3 400.00 1 Cdib. Kit ILI $5000080 CEMS OXYIMT GE ANALYZER. _ CLSCO 8500oo80 ANALYZER 3 920.00 1 ANALYZER. GEMS 55000110 GEMS ANALYZER. CISCO 650001t0 ANALYZES 3 900.00 1 ANALYZER a GEMS MOM. GEMS 01K/10%PPU ANALYZER CISCO 8500012/ ANALYZEF 3 180.00 I 1 ANALYZER a GEMS 82000008-1 GEMS CUEIE., LAHN TUBE CUBE CISCO - e2000008.7 TUBE CUB 3 56.00 1 TUBE CUBE OL2b• CEMS 9731SXFS ODO PSI DECREASING SVPPLY - 13731S-XFS UP—Litit COMPANY 87315-xrs 3 soi.13 1. HLS• Sodium Ckdodde - 2179S.501b rMF1 501b. SNI Vivion 21795-SM SNl 3 26.00 A 12 11 Sall Mobile Gear 619 flecources i t.19 a00 Chevron Delo 400 SAE30 Resource. - 3 7 da 55 H Schedule 2.1(d) Spare Parts 1 2 3 a 51 6 1 7 e 1 9 10 11 -12 13 se 1 15 16 a nce A.....1 Vsndwl a Unit of mum trier 0Wh1Ny Werehosus Stoct Tsuble Item Nuenbet System Nem OesGriptlon Nem ryP• Code Manufacture VeMor Nem NumWr Meuure Untl Coal S1oc Ow on Nerd Name Locallon Nolss IY112) p - IremarXl Ch.—SRI Grease Resowees S 2095 40 Lev 15700060 Level Comid Conlyd Pac 15700060 Control S 16G.16 1- Control NR5 15000124 $ of sna 1w 0 Switch - PacF v 15000124 smtch S 15.00 1 awi1N NLSG 10"1.30395 Gas com res,, Valve Plante,, N.Me,, PxM 10"1-30395 PI —I 3e Ptm1e,, 1150}30]76 Guide Pins Rin s Pect a 115-03.J037e Ri 9 ide Ru s NRG' e10 M1559T t Motor Jh Swner Flower Notor 7h Reuland cot : M3559T Motor 30 1 M.I. Jn - T T F41 ETHERNET GE FmUC SERIES 9OX1CPU AND 1 AND 1 AND 1 2"M. 0.22135M. 101a ETNERNEI SERIAL 50111Nv1ES1 SERIAL SERIAL IC693CPU36A AND I SERIAL PORT PORT - CONTROLS IC69JCPU36e PORT 1 PORT 28aG3 OY filler dl filer ov6ele w E ir¢er 26oa3i - n0611er .. G dl6her PL1' 2 99 -2 SPEED PICK-UP $iemem 1CSD295396-2 f 2.665.00 1 0L3' STG 3820396-2 PROXIMITY PROBE Srcmens 3e20396.2 S 645.00 1 .' OL2' 3620]96-9 STG PROXIMITY PROBE Siemefi6 3620396-9 3 6P0.00 - 1 OL2' 3020396d STG PRO%IMfTY PROBE Smmens 3820396-s S 690.00 1 OL2' -1 STG RIDGE FILTER Siemens ICS0335582.1 S 2e5.00 2 1 3 -502 STG CPU PW33 Siemem 1CSD202736502 3 6325.00 1 0L2 STO 1 .116 PULSE CARD DP620 Siemens 1CSDM27JLL116 S 5510.00 1 OL3 STG 0292730 •I01 ANALO INOUT CARD A1620 - Siemens ICS0292730-101 3 5.650.00 1 OL] STG -107 DIGITAL INOUT CARD DI650 - Siemem ICSD292730-107 S 2.70500 1 OL] ISTG ICSD292730 -102 A0650 Siemens ICSD292730.102 S 7790.00 1 OLS STG ICSO -l0s DO0630 - Siemens 1CS029273P104 3 2270.00 1 OLJ STG ICSD292730 -Toe ANALOG INPUT CARD A1630 Simmns 1050292730-106 S 36 0.00 1 O1-7 STG t 292 ]1 - - 29 .302 CPU MODULE ACa 10 Siemens -302 5 9e75.00 -1 OL] STG f .11e 1 IPOWER SUPPLY SA167 - Siemens •11C S 2625.00 1 -DR3' STG 39 31 A ]t -103 DSO1f 10 Siemens -10J 1 S 1.2e5.00 1 1 OL6 STG Schedule 2.1(d) Spare Parts . ,(■■1■f■!!��■■®■ME ■ice■® ;,, !■®■ ■ice®�■■1■f■ ■■■mom ■�®■ ■■®��■�■■■■:®■■�■ mom NO ■■■■■■■■��■■�■�■■:■■■�®■ r■®■®■■:�■■■ IN NO EN ■■ ■® ■■■®■■:��■ �■ ■■■■�®■ ■T!�■■�:� ■�!NEW ■!�®■ ■■®■�■®:■■■�■■SOLENOIO ■■■.. i■®�®® VALUE ME ■��■■:®il ON i■■ ■MEN Schedule 2.1(d) Spare Parts 33 M�■■■■�®■■ �■o ■ml�■r Schedule 2.1(d) Spare Parts mm�®�®0 MEN mm ! l NEW ME® m ffim imm ■ssi�Iimm s��a®�■�� mm== isms-■��so��s®s ®ms�� Em �'�ii lI BEN 1 Schedule 2.1(d) Spare Parts sue■® �.::..:,. ... �■i��■e�®�■■a��■ �■�■®��■ems■■®®®■■ Schedule 2.1(d) Spare Parts mom_ _©� ®�- ®r�o Schedule 2.1(d) Spare Parts 1 '2 3 A 51 6 7 3 1 9 f0 11 12 -17 1 SA 16 16 Vendod Taaeble Nem Number Syclem - M. Deecrlpuon on, type Account "U...I — Vender Item Number unspl UnK Coe' mum rd. O-nft W—hpu Sbct Nolee IVINI Code p Name- Maa u Slac Oue odHand Nem.6e Location lmmar F) verpwe . Wale, - PTe792011 RO unit MW6-Function Vat- So ions 792011 3 107.00 6 d1 - R.--il verpure - Wela, P781002059 RO unil Li id End, Com eta S.Idion. 1002059 - $ I45.00 2 .1 RO.nil CONTROLS RKSD Ff., lae, re -lima INC. RKSD 3 156.00 16 Out e CONTROLS-. A - SG855 Ni a xki - INC. SGBSA-5 f 34.00 A out . - CONTROLS. RK-32 Probe re ail kil INC. - RK-32 6 96.00 A ON e 038935 O"oAovAdIh,MuNxal, Blm'r .,0n0 089935. _ 556.00 In— X-750(651 CO. Inc. 556.00 $ 838.20 A Opt Fib., Genius Bus B A K Elegric HIRSCHMAN OZD- 933989.021 - LTG Transceiver wndee.le. GENUS 3 028.18 0 1 1 GL6- NV57125 LP Oran Solenoid Valve Pneumalk3. NV53125 LPOrain -0209D Valve LP d,W. valve 4m9D 3 79.25 1 2 veWe Emid2• - cmlate as - FILMDE A,,D a Element - En inae, FIL26DE 3 108.00 A Air 0 tt PR5' --FIL26CE Air O er Eiemenl ccwate In' E urc FILMGE S Im.00 2 Air O a PR5' G3442 I.,2 51" Air D a Mohler loon En 5165 - $ 85.00 A Air D a PR5 4820.826.4 Air D er Valve A I NC.1 112 Ni : Com !G!x! A820,826 4 S 345.00 A Air Dm,r PR5 4820.827.4 Air D e Valve Arr,nI NC 1 112 NPT Com re,so, 1 4820.827.A $ U5.001 A AwD—r I PR5 - mn'ry n r I e, - - 83500087J CEMS Seal I.Ci— Ci,- 83SON87-3 3 5.90 A - ORL782' mary nslmment ml fftw- - - 83500067-1 CEMS Bowl Cis- Cum 03500087-1 3 22.50 1 ORL3a5' ary n3lrvmml en I te1 635001052 - CEMS xNaet Z Ci— 835001052 S 3.20 A DRL3i7' ary mm,memmr Wr - 87500105-1 CEMS b-d Ci,m Ci,m 83500105-1 $ 15.10 1 ORUaA• 8350D035-5 GEMS Sam Fine FiHe, B Ci,- Ci— 8350DO5-5 .0. 1 er,3 01015003 CEMS .552.5 Cis- - Ci,m 81015003 3 6t1.A0 2 ORUa1• " TSDH1f02 CT Pb.mThermo G't Cuilwrmne TSOH1102 3 92.50 1 Gl5' Schedule 2.1(d) Spare Parts NONE ��ttzta�ts>,.r�d�lttt�tta�tt�ttata.tttsala�tttrr��tttttta to � t� �.. t� Q•3�5.. �.. t>, t;>,.l t�.O.. � !.l - t� � t� ti ®.1 � tl>t� Eov�-o®�_ �l imm MEN MEN . � tt♦t� L�� t>t>, �. t� � t;;;;;i t� tt>a t'a I f t f7. ®®- - Schedule 2.1(d)Spare Parts LINEAR TRANSDUCER It mi�WI �a�■�� Schedule.2.1(d) Spare Parts.. �z�-��•®®®e��®sue®® H Schedule 2.1(d) Spare Parts oe®oo©a■ivo ommm®m�� ®ems®o�■s�®�� ®� tee.®®�-i�iiosUlm�iao � i• � o i t-iftT'�- � i o ®� � � � �®limo■®li0r��©��0 si�loi.��i�©m■moms arm-■-ii�iio®®®ii ■i�� -�i-ieiio�s®.s_i . 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Schedule 2.1(e) Permits Hazardous Materials Business Plan, dated March 2005 (Revised March 2007) Hazardous Materials Management Program South Coast Air Quality Management District RECLAIM]Title V Facility Permit (Facility ID 14502), dated July 1, 2007 [includes only relevant sections; complete facility permit available in version dated July 1, 2006] Monitoring Plan — Gas Turbine/HRSG Units 1 and 2, dated November 1, 2005 Storm Water Pollution Prevention Plan/Monitoring Program, dated June 24, 2003 Flood Control District Permit No. PCFL 200501950, dated September 12, 2005 Industrial Wastewater Discharge Permit No. 16231, dated July 15, 2005 Storm Water Pollution Prevention Plan Updated Drawings, dated 11-3-04 Cooling Water Management Plan, revised July 2005 Storm Water Pollution Prevention Plan Addendum, dated 12-4-03 and 12-22-03 Cultural Resources Inventory Report, dated July 2003 Verification Statements from Responsible Design Engineers Permits to Operate Air Pressure Tank, various dates Construction Storm Water Pollution Prevention Plan, dated June 2003 Letter from City of Vernon to State of California, Department of Industrial Relations re Preliminary Order for Unit I Pressure Vessel, dated February 14, 2007 Revised Industrial Storm Water Pollution Prevention Plan/ Monitoring Program, revised date March 2007 CEC Final Decision for Malburg Generating Station, dated May 2003 Risk Management Plan, dated February 2005 Radio Station Authorization effective as of February 15, 2006 Storm Water Pollution Prevention Plan, revised March 2007 Hazardous Materials Business Plan, revised March 2007 Storm Water Permit (industrial), Receipt of Notice of Intent letter dated March 28, 2002 Noise Measurement Results for CEC Conditions of Certification, revised February 6, 2006 Air Quality Construction Mitigation Plan — Ambient Air Quality Monitoring Plan, dated May 2003 2.1(e)-1 Emissions Rights Any NO, RECLAIM Trading Credits (RTCs) held by the City specifically for the Facility; see Section B of South Coast Air Quality Management District RECLAfM/Title V Facility Permit (Facility ID 14502), dated July 1, 2006. 2. Any S02 Acid Rain Program allowances held by the City specifically for the Facility; see Appendix B, at pages 9 — 13, of South Coast Air Quality Management District RECLAIM/Title V Facility Permit (Facility ID 14502), dated July 1, 2006. 3. Seller will obtain any variance or stipulated order of abatement from the South Coast Air Quality Management District required in connection with the start-up and/or testing of the Facility after the repairs associated with the outage described in Section 5.2(m), 2. 1 (e)-2 Schedule 2.1(g) Assigned Agreements 1. Services Agreement between Vernon and NALCO Company, dated September 5, 2006 2. Services Agreement between Vernon and Thomason Mechanical Corporation, dated March, 2006 3. First Amendment to Services Agreement between Vernon and Thomason Mechanical Corporation, dated July, 2006 4. Second Amendment to Services Agreement between Vernon and Wood Group Field Services, Inc. (FKAThomason Mechanical Corporation), dated October 4, 2006 5. Ammonia Delivery Purchase Contract between Vernon and Hill Brothers'Chemical Company dated December 3, 2004 6. Amendment to Ammonia Delivery Purchase Contract between Vernon and Hill Brothers Chemical Company dated August 28, 2006 7. Services Agreement for the Malburg Generating Station, MP Contract Number I I -COV-06, dated as of September 25, 2007, between Siemens Demag Delaval Turbomachinery, Inc. and the City of Vernon 8. Purchase order for new Module described in Section 7.11 (a) U2. 2.1 (g)- I Schedule-2.10) Miscellaneous Assets 1. New Module described in Section 7.1 1(a)(2). 2.1(1)-1 LI, None. Schedule 2.2(k) Seller Marks 2.2(k)-1 None. Schedule 2.2(m) Rights to Recovery 2.2(m)- I Schedule 2.2(n CITY OF VERNON ASSETS RETAINED AFTER MGS SALE CPUNAME OS CPU TYPE SFRIAL PLJRC14ASF DATF DFPT covin MGS COMPUTERS TO BE TRANSFERRED Covcdelgardlo WIN2000 Gateway 20509140 9/24/2000 MGS Ytaylorl \AnNXP MIDWAY 32528422 7/10/2002 MGS Covrrecanol V\IIN2000 E-3600 25238908 10/25/2001 MGS Covamarkil WINXP OptiPlex 745 6C26JD1 8/24/2007 MGS Covkmoenbl WINXP Latitude D620 F7Z05C1 11/26/2006 MGS Covinogueral WINXP OptiPlex 745 1D26jD1 8/24/2007 MGS Covmthompsonnb2 WINXP Inspiron 600m MGS Eknutsonnbi WINXP Latitude D520 23XFNC1 3/11/2007 MGS ,Mgsccnbl WINXP Gateway 34739548 1/11/2005 MGS 2091 1PRINTERS HP5100 NPl9B9F6A MGS Laser 2600 MONITORS 1 - 17" Monitor 4 - 19" Monitors CITY CELL PHONES Nextel 9600 (Knutson) PHONE SYSTEM Mitel 4025 Voice Over IP Phones to be removed from offices: 2 - Yolanda's office I - M. Thompson's office 1 - S. Delgadillo 1 - A. Marki I - R. Recano 2 - Knutson/Moe 1 - Laura Schedule 2.2(o) Other Excluded Assets I . Any damaged or replaced parts from Unit 1, including the damaged Module from Unit 1. 2.2(o)-1 13 None. Schedule �� Other Assumed Liabilities 2.3(a)-1 Section 2.4(h)(1) Prepaid Expenses [Separately providedl 2.4(b)(l)-I SIEMENS Copy Quotation Wednesday, January 10, 2007 City Of Vernon L & P -4 Malburg; Generating SIation Vern,on. CA Ann: Mark Thompson Phone: 323-826-3610 Fax 323-685-5074 Subject: Your Inquiry (*B'Inspection Parts -One Unit) Cluotation Number 40042-WT-1 Revision I for City Of Vernon L & P Siemens Demag Delaval Tuftmachinery Inc. is pleased to offe(the following for your consideration: Unit Lsed Time ltwn Oty Part Number D"criptbon SMMI No. (Weeks) Unit Pried Eirtanded Prica 001 �&,V 2423560-C Sumer BOS31 $37.925.00 $1 AV. -?WOO 7, IM-. PC 002 2423699-0 Coml�ustor 60531 $1,516.328.00 'Y' 003 17101 2423470-C Turbine blade B0631 $11,605.00 $ I X91Z _00Z 0 to), 77 0 004 j " �56 2423483-A Guide vane Vans I Complete BMI $19,289.00 -2 005 ele W 242295.4-A Guide vane Turb.gulclo vane2 BOS31 $12.542.00 $61 006 -2 Y 2420018-1) Gulde vane No Z boroscope 80531 $12.981.00 S 1 �2""__-M OD7 I Z 2423682-A Guide vane No 2. Temp B0531 $13,263.00 $26,526.,00. W8 IL 'N ICSAI0225-1 Braided pecking B0531 $1.00 MOT 009ATFII� T3907-178 Lock washer B0531 $5.00 $ 1�380-00 2,7� 0 - 010 1 2_,& 21S17002-197 Washer 00531 319.00 $JI4,00 Of I ro 06 T3904-178 Locking washer B0531 $3.00 $!P-00 -zd+O 012 LfqX T3910-185 Lock wasNr (fokled) B0531 S5.DD V20-00 �Zlfa 0137 [-�d T3907 -178 Lock washer 80631 $5.00 014 +2- 2423623-2 Sealing Ong C-seal B0531 $223.00 SA4&OU 2-.'= 015 �7 A 242362-1-1 Sealing ring C-seal 60531 $470.00 t470,09 9-tO 016 ifZ T3712-31-1 Shoat gasket aoc. to EN B0531 $8.00 Us, .00 017 3' T3712-318 Sheet gasket am. to EN B0531 $16.00 $48-W 018 T3712-224 Sheet gasket B0531 $32.00 06,00- 019 T3712-M Sheet gasket ace. to EN B0531 S32.00 $224.110 .9f 020 T3712-220 Sheet gasket aoc. 16 EN B0531 $14.00 $5fiw 12. Siemens Demag Delaval Turbomi3chinery Inc- 840 Nottingham Way Tei: (609) 8MSOOO WAW_Pg.9WnWM.CDM HaM01ork Now Jeaey 066" USA Fax� (Mg) 5117-7790 SIEMENS Quotation Ouolation 40042-06T- I continued. page 2 of 9 COPy 021 V"e 242146&1 Gasket B0531 $99.00 $P� -71 -Z, �O2 2 2- Y 2422868-7 023 1pfUl T3907-186 Lock washer B0531 $8.00 S !Y&W 024 -21fly' T3905-186 Lock washer &sinless steel B0531 $9.00 $108.00 025 2.Y T3711-315 Sheet gasket aml . $2.00 S2,00 026 LP2' T3711-319 Sheet gasket W531, $4.00 S8.00 027 Ze T3711-3`15 Sheet gasket 80531 $2.00 $2.00 028 2 Y T3712-222 Sheet gasket ace. W EN 80531 $32.00 $32.00 029 Xi T3711-319 Sheet gasket 80531 $4.00 $8.00 030 Ir' T3712-22S Shoot gasket according to EN 80531 $73.00 $73.00 031 10 T3907-166 Lock washer B0531 $8-OD $128-00 032 IS 24 T3907-178 Lock washer 80531 $5.010 $120.00 033 2 Y 24228 68-3 Gasket Armco 00631 $62.00 $62.00- 034 AfZ 242286&1 Gasket Armco 005311 WOO $128.00 035 A, 2422868-2 Gasket Arnica 80531 $12.00 $48.00 038 X 73910-173 Lock washer (folcled) 80531 $4.00 $16.00 037 8X T125,3-239 Split pin 1305311 $4.00 Si 6.00 038 I-LX 242286" Gasket Affnco B0531 322.00 $132.00 039 11,0 2422868-5 Gasket Armoo B0531 $21.00 $168.00 040 2 y T3712-314 Gasket B0631 $5.00 S5.00 041 T3905-178 Lock washer (folded) 60531 $8.00 S32.00 1p 042 :2 Y 2420212-1 Sealing E-3eallng 'W531 $13.739.00 113.739.00 043 tjZJ,(t-- T3907-178 Lock washer 00531 $5.00 $80.00 044 -mv T3907-186 Lock washer 30531 S8.00 $992.00 045 32A T3907-179 Lock washer.Nordlock 90631 S9.00 $ 1 ".00 046 )av P T3905.17 6 Lock washer (folded) B0531 S8.00 S400.00 Slemens Demaq Delaval Turbomachinery Inc. B40 Nottingham Way Tel- (609) 890-5000 �.pg.3iemens.corn Hamilton. Now Jersey 08638 USA Fax (609) 567-7790 SIEMENS Qu otation Coply Ouotaflon 40042-OST- I continued. page 3 of 9 D47 4-2 2421514-2 Gasket B0531 $13.00 $26.00 048 JZ 2421514-1 Gasket 80531 $13.00 $26.00 049 4-- T3907-165 Lock washer 80531 $10D $6.00 05026�113907-179 Lock washer Nordlock B0531 S9.00 $1.188.00 051 .31 Wr T3907-186 Lock washer 60531 $8.00 $128.00 062 At 2' 2421283-1 Gasket Square gasket aml $13.00 $26.00 053 K 21517002-175 Lock washer $26.00 $208.00 054 4,2 2421264-1 Gasket Square gasket 80531 $15.00 S30.00 055 1 Lit- M17002-175 Lock washer E10531 $26.00 $200.00 058 �d 30r 2420792-1 Gasket SM31 $70.00 $2.340.00 05-7 VLP6,T3907- 06 Lock washer 80531 S8.00 Si.440.00 058 f Z 2415045-2 Gasket 80531 S39.00 $78.00 059,2.2 14 T3907-168 Lock washer 80531 $8.00 $125.00 060 1 4- 2416046-2 Gasket 13OS31 $39.00 . $39.00 061 -9- T3907-1 66 Lock washei B0531 $8.00 $64.00 .V-., -T) 002 2 T3910-165 Lock washer (loWed) B0631 S5.00 $60.00 Qj 063 T37MI33 Gasket metal sheeted 80631 $16.DD S48.00 064 Y T3910-204 Lock Washer (folded) 00531 $6.00 $18.00 065 �W 2 15 17002-195 Washer 80531 $11.00 $550.00 066 � 0 aC- 242 1910-1 Spacal (in 60531 $13.00 $390.00 067 (K,30-2421910-2 Spacer mg B0531 $18.00 SW.00. 068 6030-724219104 Spacarring 80531 $19.00 $570.00 069 �O W 2421910-4 Specerang B0531 $22.00 $6W.00 070 30' 2420792-1 Gasket B0531 $78.00 $2,340.00 071 S-*-- T39 1 G- 179 Lock washer (Polded) 60531 S3.00 $12.00 072 :Z 4-T3706-138 Gasket B0631 $71.00 $71.00 Si6mens Demag Delaval Turbomachinmy Inc. NO N*ftkVmm Way Tol: (609) 800-6MO W�.pO.9i9men5.COm HamiMon. New Jamey 08638 USA Fax: (609) 567-T790 t SIEMENS Quotation Ouolation 40042-06T- I continued, page 4 of 9 COPY 073 -Z / T3712-314 Gasket 130531 $5.00 $5.00 074 40) W-2420702-1 Lock washer (folded) 130531 $1,140.00 075 Go 2T T3910-185 Lock washer (folded) 8053 t $125.00 0761:7�� T3907-186 Lock washer 80531 $�8.00 $680.00 M2ff 2420476-1 2 Sealing Outer seal strip 80531 $25.00 $625.00 0786z.0 2420478-1 Sealing Inner seal strip 80531 $67.00 S1,675.00 079jad W 2420708-1 Lock waahat B0531 $12.00 36M.00 080 21 4Z 13408044-139 Wire round, staInfessi W531 $3.00 S36.00 081166 5W 2420703-2 FtelaJnlng ring Internal B0631 $18.00 $900.00 082 to W- T3D05- 165 Lock washer (folded) B0531 $8.00 $400.00 083,so-25 2420475-1 Sealing Outer seal strip $25.00 $625.00 084 5-o25 2420476.1 Sealing Inner seal strip 80631 $67.00 $1.675.00 085 6&n 2420477-1 Sealing Seal strip 80531 $67.00 $1,675.00 088 570 IK 2423340-1 Sealing Rear 4eal strip 80531 $75.00 $1,875.00 087100 ST 2420703-1 Relafning ring Internal B0531 $34.()0 $1.700.00 088 6b W.24ZO702-2 Lock washer Volded) 80531 $37.00 $925.00 089 :�70 to' 2420490-1 Lock nut Of steel 80531 $2.00 $20.00 090 Ah- 2423585.1 Sealing blade I B0531 120-00 $10.440.00 091 3-2424155.1 Sealing 60531 $1.00 $3.00 0) C, 4- 2420137.1 Lock plate blade 1 60631 $629.00 S1,887.00 093 1 Tf Or-24123582-2 Sealing Blade 1 B0531 $38.OQ $3,306.00 094.yLtW 73905-178 Lock wissher (folded) 80531 $8.00 $138.00 095 -178 :7_11��T3907 Lock washer 80531 - $5.00 $740.00 0962-z W T3905-378 Lock washer (folded) 80631 $8.00 $88.00 097 12- a- 21517002-102 Lock washer B0531 $18.00 $108.00 098 2,D W 2420211.1 Sealing Seat strip 80531 $237.00 32,3�0.00 Siemens Demag Delaval Turbomachinery Inc. 840 NoWngham Way 701: (6091 no -sow -WW.P9.6i0"Vn3.00M Hamillon. New JMey 08638 USA Fax: (609) 587-T790 SIEMENS Quotation Otiolation 40042-06T- I continued. page 5 of 9 099 104 5-. W0534-1 GOOOSO Wer saalathp 80531 $74.00 $3,848.00 100 JoLr 2423255-1 Sealing Inner seat strip B0631 $75.00 S3,91)0.00 101 ;? -t-AISS1860-1 Plastic foll Oml S47.00 $47.00 102 Af 2-'A0721170-185 Paste lubricant Bmt $137.00 $274.00 103 10 �W- 1340 0 044-139 Wire round. stainless BMI S3.00 S60.00 104 q- -2� A0721230-55 Thread seeling.Locille 542 B0531 $61.00 $122.00 105 ?-A-AI551160-14 Tape 00531 $13.00 $52.00 106 2 Y A0721230-82 Threadlocker Locilte 275 80531 377.00 S77.00 107 2- 1- A0721230-61 Locii1e, 243 Bml $77.00 $77.00 108 902Cr A1556846-3S Emery clolh, no. 100 B0531 $3.00 SOO.DO 109 ZO W A1556046-36 Emerypaper Swill $3.00 $30.00 110 2�&WA155884&37 Emery cloth 80531 $3.00 $30.00 111 -J4 20r A3496860-41 Cleaning cloth BMI S4.00 $80.00 1112 A1556860-12 Wall brush morder B0531 S2.00 S10.00. 113 A1551160-12 Masking tape B0531 S4.00 $8.00 114 80..16-- A8212962-21 Deposit box BOS31 $9.00 $135.00 115 70 W A8212952-22 Deposit box 00531 $5.00 $176.00 116 0 tS A8212062-23 Deposit box OD531 $7.00 $105.00 117 A1556990472 Assembly glove BMI $11.00 $528.00 118 Z .1-A1551176-31 Marking paint Sty1mark 130531 $21.00 $21.00 119 IrA2441176-48 Marking pen Arlfino 400-XF SM11 $10.00 $50.00 120 -24- 13108011-2 Gasket sheet B0531 $612.00 $812.00 121 1, 3,-17108DO1.143 Gasket sheol 130531 $81.00 $243.00 122 E-0 05 AlSW160-111 Cleaning tissue OM1 $25.00 $625.00 123 * 2T Ai556960-38 Refuse sack 13053 1 $2.00 $40.00 124 20 tT At564944-3 Battaty BMI $ 1.00 $10.00 Siemens Demag Delaval Turbomachinery Inc. 840 NotilrNharn Way Tat: (09) OW-5600 www.pg.3fornons.com Hamifton. No. Jersey 08638 USA Fax: (OD9)587-T790 SIEMENS C()P)( Quotation Ouotation 40042-OBT-1 continued, page 6 of 9 125 2_01eA15S4944-8 Battery 80531 $1.00 $10.00 128 1,�W A6ME1516082 WIRE BUNDLERS 39OX4,7 TSOL BOS31 $1.00 $100.00 127 A606E0764113 EleclricaJ tape B0531 $3.00 $6-00 128 jo-Cr T3704-108 Point gasket 130631 $3.00 $15.00 129 0- T3725-179 Gasket B0531 $2.00 $16.00 130 10 �$-T(1102-101 Union nul 80531 -13 1 Z- T6313- 10 1 Plug for POO coupling 13=1 $1.00 $5.00 $2.00 $4.OD 132 2- T68 15, 102 Coupling 80531 $5.00 $10.00 133 2- T6815-802 CouplIng d a, 114 npi 80531 $6.00 $12.00 134 2- T68204102 PIPG COUPI)ng, straight 80531 $ t 1.00 $22.00 136 7 4- T6830-101 Union 80531 $7.00 v.00 136 2_ 4- T6870- 101 Too coupi" B0531 $18.00 sia.00 137 16 jr T7021-101 Ferrule 80531 $1.00 $5.00 138 9 ICSA6136.1 Nut B0531 $90.00 $270.00 139 Y ICSAS 36-1 Nipple 130531 $29.00 140 ICSAB,133-1 Coupling B0531 312.00 $12.00 141 (,.2, 1851523.1 Nipple B0531 $16.00 W.00 142 -4- 1852416-1 Adapleir M12 X 1.5 -R1/4' B0531 $31.00 $124.OD 143 2- 1852417-1 Hipple 60531 $28.DD $56.00- 1" .2 2035928-8 0uICk Soupling male 80531 $107.00 $214.00 145 Z 2035929-2 Adapter lernale-male, BSPP-NPT 80531 $29.00 $58.00 146 e 70006131-A Pipe oonneclof BOS31 $21)00 $42.00 147 -Z 7000,6131.9 Pipe connedor B0531 $21.00 $42.00 148 :Z J- 70006131 -C Pipe connector 130531 $21.00 $21.00 149 70DO6131 -E Pipe connector 00531 $21.00 $21.00 ISO 70006131-D Pipe connector 130531 S19.00 $38.00 Siemens Demag Delaval Turbomachinery Inc. w Nm$n"M Way 'Is?: (09) 890.5m www.pg.sigmeng.com Hernglon, New.)ersey 08638 USA Fax: 1609) 567-T790 M SIEMENS Quotation Qualation 406�12-06T-1 continued, page 7 o(9 Fi-A- k $24.00 151 A- I CSAS259-1 Hose B0531 $6.00 152 1 CSA826.3-1 Coupling B0531 $6.00 $12.00 163 ICSA@261-1 Coupling B0531 $5.00 310.00 +.E- 154 � E' iCSA8262-i Coupling 80531 $4.00 $8.00 155 f, 20- ICSA8130-1 Sleeve 80531, $7.00 $140.00 156 it -rICSA79MI Hose 00531 woo S30.00 157 4- ICSA8257-1 Gasket 80531 $16.001 $64.00 158 1111 1 CSA825a- I Gasket 80531 $22.00 $176.00 159 10 8-2423623-3 Sealing Ong C-seal 80531 $166.00 $775.00 ISO 44- T1873-536 Hexagon eockethead screw B0531 $42.00 $5".00 22 larg6 clearance 181 0,1* T1"S-S42 Hexagon head bolt B0631 SIM00 s5,3G4.00 ��162 %-.. r7) go W T3907-178 Lock washer 00531 $6.00 $200.00 - 163 11,6- 2021278-3 Gasket for Ilan" connection B05311 s5I.00 $306.00 164 12-.0- 20212M2 Gasket for flange connection 80531 $29.00 $ I i4.00 165 8- T2804-120 Hexagon nut B0531 S2.00 $16.00 166 0-TI624-695 Screw, Steel B0531 $17.00 $136.00 167 B, T2804-124 Hexagon nut B0531 $4.00 $32.00 108 a-TI624-6" Hexagon head screw B0531 $0.00 $72.00 Ilia -4- T3717-316 Gasket 80531 $86-00 $344.00 170 Ar T`1622-630 Hexagon head screw B0531 $3.00 $24.00 171 4-T3717-466 Gasket 80531 $99-00 $30.00 T1622-676 Hexagon head screw galvanized B0531 S15-00 $40.00 r'------172 M J, A07211170-185 Paola lubricant 80631 $137.00 $137.00 174 k A4431160-63 Teflon band E10= $2.00 $2.00 175 -24 W6861110-3 Wire brush 00531 $4.00 $4.00 176 2-e A1551160-12 Masking lope 60531 $4.00 $4.00 Siemens Demag Delaval Turbomachinery Inc. SAO NollftVharn Way Tel: (609) ew'sooa Hamillon. New Jersey 0=8 USA Fax: (609) S87-1790 SIEMENS copy Quotation OUOtatlon 40D42-OffT- I continued, page 8 of 9 177 -f-A1551160,-14 Tape $13.00 80531 $13.00 178 k A606EO754113 Electrical tape 80531 S3.00 S3.00 179 A-76816-802 Coupling d 8. 1/4 npf B0531 $6.00 $24.00 180 A-1852417.1 Nipple 130531 S28.00 $112.00 181 Lj 1852416-1 Adapter M12 x 1,5 -RI/4" B0531 $31.00 S93.00 112 �r 203592" Wck ifoupling male 80531 $107.00 S321.00 IM 43-- 2035929-2 Adapter female -male, B$PP-NPT 00531 $29.00 $87.00 184 Z- T3725-179 Gasket 80531 $2.00 30.00 11156o W ICSA83WI Tellon hose $6.00 $1126.00 186 28- ICSA8253-1 Spring 00531 $3.00 $75.00 187 W T6102- 101 Union nut 90531 SI-00 $20.00 158 20 70005795-B Adapter B0531 $39.00 $780.00 189 -4- A6831260-4 Bycotest CS Cleaner Dangerous B0531 $25.00 $100.00 Goods a ISO r A1551170-68 Rust oil WD 40 Dangerous 80631 $21.00 SICS.DO 10 Goods 191 A-A6631260-2 Bycoleat AP20 Pane(r. coloured B0531 $2.5.00 $100.00 Dangerous 192 A' A6831260-3 Sycotell 030 Developer 80631 $25.00 $100-00 Dangerous 0 qj 193 q_A-A166111170-190 Rust preventive Dangefous G 80531 S19.00 S119.00 Total - Exworks: Finspong, SE US Dollars $5,670,925.00 Price Is for one unit. Price does not include sales & use taxes that may apply to the state of California. Price does not Include freight/dury/retaled charges to ship from Finspong, SE to the Ctty of Vernon. SDDTI otters to C00nJin6tO such 80VM83 at our cost plus 10% and then invoice to City of Vernon. This pricing Is at an exchange rate of 6.77 SEK 1$1.00 USD. Siemens reserves the right to adpoA the pricing should the exchange rate move by more than 5% at the timeof order. Progress Paymenia (see cover letter dated 01/10/2007) 9thermse: 40% of order amount to be invoiced when PO is received. 50% of order amount to be invoiced 120 days after receipt of PO. 10% of order amount to be invoiced upon llnal shipment. Siemens Demag Delaval Turbo.machinery Inc. a40 mttr"rn Way Tei; (609) 890-5000 �.pq.siernenS.Com Harnitton. New Jersey 0863a USA Fax: (6091587-T790 SIEMENS COPY Quotation Ouolsj�on 40042-OUT- I continued, page 9 of 9 Lead limes for Indiviclual line iterns are shown in vmeks afler receipt of order, suNed to prim sale. Prices are firm through shipment and valid 30 days from the date of this letter. Please note that there is a $500 minimum order value. Payment Mil be progress Payments isee notes). Sismervs Darnall Delavall Turbomachinery Inc, Selling Policy 1200 (dated SnIM5) shall appl�y to any resultant order. All purchase orders Ewe to be made out In the narne of: Siemens Demag Detaval Turlaornachinery Irr- 840 Nottingham Way Hamilton. New je(sayO8W8 USA A you have anyquedions, please- feel free to oonlact me or. Best Regards, Soott Hutchinson Customer 3ervice Representative Tol:(28l)N6-4428 Fax:(281)856-4499 a-maU:swtLhAchinson@3iemens.corn Siemens Demag Delaval Turbomachinery Inc. M NMkujham Way Tel; (Mg) 890-50DD wYw.pW.5iemen3.corn Hamilton, Now Jersey 08638 USA Fax: (609) 587-7790 I CJTY,bF VERNON, CALIFORNIA& PUVACiiASE REUSITION LP No. LIGHT & KWR 4996 DA DEPARTMENT- R�EOUESTOR NAME: DATE: IIJ612007 T(En 'HONE N D SUGGESTEDVENDOR. ��PHO�NE NO.A r,(jcIIfRq()_S0 — — — ---------- VENDOR ADDRESS' 840 NOTT INGHAM WAY- HAW-TIDN-, EW-JERSPtg� FAXI: CONTACT PERSON. SCOTT III 11CHINSON REQUIRED DELIVEWO'n" 1790 SERVICE DATIL -RUSH )4N OELIVEAY OR SERVIGE LOCATION: 0 ST 03 �OT ___—..4 1 $OTO S�T_ ACCOUNT NO. ITFM8 BUDGETED YES NO_ UNIT PRICE EXT60EDAMOUNT -AOUG (Cwrmuod hom pro Me) $11341612 $11,341,612 0( .00 A6631260- flyooMl D30 Devwpof Dengwoul G $25.00 $200.00 3 2 "ch A11551170- Rust p(~t2t?- DIIIng6f0us G $19.0c $38.00 190 8.25% Sale& tax $935702 .6' $935,702.63 see attached Quote# 40042-06T-1 Page20of2O SubTota $12,277,552,63 Taw ShIppin(: SCHEDULED DELIVERY DATE� Tots IF ITEMS ARE NOT BuoGiTED. EXPLAIN NATURE OF REOUEST BELOW, OR SU13MIT MEMORANDUM. -ij" I heteby certify that the abo�e items awe necessaiy (ot the oNtaiion ol lVis Depwtmem�_ Oepartment Head orAuftrized Peison tt ONLY FOR PURCHASINGDEPARTME U ISSUEO BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER Cl . TY.4 VERNON, CALIFORNIAe PURCHASE RE ITIO -17 LIGHT & P R LP No. 49 DEPARTMENT: IREOUIESTOR NAME: DONALO-CALLAGMAN I IM DATE: 111612007 0-p SUGGESTEDVENDOR: VENDOR ADDRESS: HAD411TOMIJ 84ONGT-TINGIIAMIWAY FAX 0: CONTACT PERSON: SCOTT HUTCHINSON REQUIRED DELIVERY OR SERVICE DATE: RUSH DELIVERY OR SER'JVCE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES x NO— DFSCRIPTiCH UNIT PRICE EXTENDED AVOW 60 each 2423560-C Burner $37925.00 $2,275.500. 00 2 each 2423699-0 Combustor $18165328.0 $3,6532,656. 0 00 174 each 2423470-C Turbine biade 11-1605.00 $2.019,270. 00 100 each 2423483-A Guide vane Vane I CompietO $19289.0c $1.928,900. 00 go each 2422954-A Guide vane Turb. guide vane2 $1254 2.0C $1,229,116. 00 2 each 242DO18-0 Guide vane No. 2 boroscope $12961-OC $25,922.00 4 each 2423682-A Guide vane No. 2 Temp $13263.0( $53,052.00 16 each 1CSAID22 Braidedpacking $1.0( $16.00 552 each T3907-ltg LOCkWaMer $5.0( $2,760.00 12 each 21517002- Washer $19.01 $228.00 197 80 each T3904-178 LockingWasher $10 $240.OD Page I of 20 (Continued on next page) SubTola $11.167,660.00 Tax Shippinj SCHEDULED DELIVERY DATE: Tots IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW. OR SUBMIT MEMORANDUM, Department Head or Authonzed Person FOFt PURCHASING DEPARTMENT'U!k: LY n;:p,&D-nAv&r*r CITY . OF VERNON, CALIFORNIA PURCHASER N LIGHT & P R LP No- .4978 ........... r)ATF- i it jr-W 0 LAi i AGHAN J ME SUGGESTED VENDOR: MENS PHONE NO-: 609Y890-5000 VENDOR ADDRESS: 840 NOTTINGHAM'AAAV WAA411 TQNI- np638 FAX C CONTACT PERSON: SCOTT Ht ICHINSON 6^09"'71790 REQUIRED DELIVERY OR SEI�VtCE DATE: P I I!:J4 DELIVERY OR SERVICE LOCATION: 4963SOTOST. \,ACCOUNT NO.. — — - — .1— . I ITEMS BUDGETED YES NO QUANTITY VMTOF t9suc UNlTM;CiE..'- EXFCNDEDAMOUNT (Continued from pr emous page) $11167660 $11,167,660 0( .00 48 each T3910-185 Lock Washer (folded) $5.0( $240.00 26 each T3907-176 Lock Washer $5.01 $130.00 4 each 2423623-2 Sealing ring C-seal $223.04 $892.00 2 each 2423623-1 Sealing ring C-seal S470.0( $940.00 4 each T3712-317 Sheet gasketacc. to EN $8. $32.00 6 each T3712-316 Sheet gasket acc. to EN $96-00 6 each T3712-224 Sheet gasket $32.0) $192M 14 each T3712-222 Sheet gasket acc. to EN $32.03 $448.00 8 each T3712-220 Sheet gasket acc. to EN $14.01 $112.00 8 each 24214WI Gasket $99.0) $792.00 Page 2 of 20 (Continued on next page) SubTol9j: $li.171,534.00 T. Sh Ippi, SCHEDULED DELIVERY DATE: Ir I I MMO AKt NU I t5VUUtzTEU, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT I hereby certify that the above ilerns are necessary for 1110 Operation of this D9parmmnt Department Head or Autiijrized Person- E FORPURCHASING:16'r 14TIVIENT"'USIE ONLY' ISSUED BY DATE RECEIVED BY DATE PURCHASEORDER -NUMSER L - I CITY--Q� VERNON, CALWORNIA PURCHASE REqaSITION LP No. 4979 411 - LIGHT & PqFR DEPARTMENT;. —JREQUESTOR NAMC DONAL O'CALLAGHAN / IMC TDATE, 1/16r2007 SUGGESTED VENDOR: PHONEN0-!( 6091890-5000 - - SIEMENS VENDOR ADDRESS: ijEw Ir-IRSEY CAR38 FAX 0: CONTACT PERSON: SCQTT HUTCHINSON -.Jur 600. # r 7" REQUIRED DELIVERY OR SERVICE DATE.' WISH DELIVERY OR SERVIC E LOCATION: 4963 SOTO ST. ACCOUNT NO.- ITEMS BUDGETED YES X *NO— C QUANTFrY (WoFI88K 8200 8600 DESCRIPTION UNIT PRICE :EXTENDE.0 AMAG)LW 1 (Continued from previous page) $11171534. $11, 171,534 0C -00 2 each 2422868-7 Gasket Amy-0 $32.00 44 each T3907-186 Lock washer $8.00 $352.00 24 each T3905-186 Lock washer Stainless steel $9.0c $216.00 2 each T3711-315 Sheet gasket $2.0( $ 4.00 4 each T3711-319 Sheet gasket $4, $16.00 2 eac . h T3711-31-5 Sheet gasket $2.0( $4.00 2 each T37`12-222 Sheet gasket acc. to EN $32.01 $64.00 4 each T3711-319 Sheetgaske( S4.00 $16.00 2 each T3712-225 Sheet gasket acc. to EN $73-01) $146.00 32 each T3907-168 Lack Washer $8.01) $256.00 Page 3 of 20 (Continued on next page) SubTota : $11,172,640.00 Ta): Shippin(* SCHEDULED DELIVERY DATE: Tota IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby certify that the above items are necessary for the operation of this Department Department Head or ALgho(ized Person FOR PURCHASING DEPARTMENT.USZ9.NLY .ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER nt:DbmTAAr:P-yTru r CITY OF VERNON, CALIFORNIA PURCHASE REO SIT ON LIGHT St 'All R LP No. pw 4980 --rREQUESTOR (�D�E�PARTMENT: NAME: DONAL 9CALLAGHAN IMC DATE: 1116/2007 L&P SUGGESTED VENDOR: PHONE NO.: (r3091890-5000 SIEMENS VENDOR ADDRESS: EW IERSEY OR63A FAX 1: CONTACT PERSON,. SCOTT HUTCHINSON L,VV, 'jV1 I I y REQUIRED DELIVERY OR SERVICE DATE: PI ISH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X NO_ QUANTITY ji..rro�;��uE --- -- --- DESCRIPi UNIT PRtCE EXTENDED AMOUNT (Continu ad from previous page) $11172640. 00 $11,172,640 .00 48 each T3907-178 Lock Washer $ 5.00 $240.00 2 each 2422868-3 Gasket Armco $62.00 $124.00 4 each 2422868-1 Gasket AM CO $64,00 $256.00 8 each 2422666-2 Gasket Armco $12.00 $96.00 8 -each T39IG-173 Lock Washei (folded) $4.00 $32.00 8 each T 1 2n-239 Split pin $4.00 $32.00 12 each 242286" Gasket Armco $22.00 $264.00 16 each 2422868-5 Gasket Armcci $21.00 $33f5i.00 2 each T3712-314 Gasket $5.00 $10.00 8 each 73905-178 Lock Washer (folded) $8.00 $64.00 Page 4 of 20 (Qonthued on next page) SubTotal: $11,174,094.00 Tax: Shipping: SCHEDULED DELIVERY DATE: Total: W IF ITEMS ARE NOT 13UDGETED. EXPLAIN NATURE OF REQUEST BELOW. OR SUBMIT MFMORAl`4bUw I hereby certify Ittat the above items bra necessary for the operation of this Department DejUrtrnent Head or Authorized Person FOR PURCHASING DEF AIIIENT. USE ONLY ISSUED BY DATE RECEIVED BY 6ATE PURCHASE ORDER NUMBER w] PURCHASE RE S C.ITY OF VERNON, CALIFORNIAID . LIGHT & P R LP No. 4981 DEPARTMENT: IREQUESTOR NAME-. DONAL O'CALLAGHAN) IMC DATE: 1/1612007, SUGGESTED VENDOR: I PHONENO.:i 6097890-5000 VENDOR ADDRE . SS: 84QpIGTT1tIGHAMW" HAWLTON,14BU ERSEY-0863R FAX#: CONTACT PERSON: SCOTT HUTCHINSON — 609687 ?790 REQUIRED DELIVERY OR SERVICE DATE- 01 IqH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.. ITEMS BUDGETED YES X NO �Ifr WANTrrY 051 uwr oF DESCRIPTION UNIT PRICE EXTEND;E0�AMMOOLINT I (Continued fron't previous page) $111740'94. $11,174,094 0C .00 2 each 2420212-1 Sealing E-sealing $13739.00 $27,478.00 32 each 13907-178 Lock washer $5.0c $160.00 248 each 73907-186 Lock Washer $8.0c $1.984.00 32 each T3907-179 Lock washer Nordfock $9.0c $288.00 100 each T3905-178 Lock washer (folded) $8.0( $800.00 4 each 2421514-2 Gasket $13.0( $52.00 4 each 2421514-1 Gasket $13.01 $52.00 4 each T3907-165 LockWasher $3.0(1' $12.00 264 each T3907-179 Lock Washer Nofd lock $9.00 $2,376.bo 32 each T3907-186 Lock Washer $8.01) $256-00 Page 5 of 20 (Continued on next page) su6Totak $11.207,552.00 Tam Shippint SCHE DULED DELIVERY DATE: Tota *IF ITEMS ARE NOT BUDGETEO. EXPLAIN NATURE OF REOUEST BELOW. OR SUBMIT MEMORANDUM. 26 I hereby certify that the above items are necessary for the operation of this Department Deparlment Head of Authorized Person FOR PURCHASING DEPARTMENT 1,1115 4LY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER CITY.OF VERNON, CALIFORNIAG PURCHASE REUSITION LIGHT III PCWR LP N' 4982 (DEPARTMENT: IREQUESTOR NAME: n0NAI 0'rAl I A(-,HAN I IMC tDATE: 1/16/2007 SUGGESTED VENDOR: PHONIENO-( 6()9y890_5p0() VENDOR ADDRESS: SIEMENS —ftP%40N,'!EWjr=R8EY 086538 4.N0T:fINGHAM—"" FAX 0- CONTACT PERSOK Rr OTT HI ITCHINSON 669;115874790 REOUIRED DELIVERY OR SERVICE.DATE: AUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.. 'M8200-8500 ITEMS BUDGETED YES X *NO OUANTITY 055 UNIT OF ISSUE - 11W.EIR) CE. --- -Za;;r EMENDIED I (Continued from previous page) $11207552 $11,207,552 0C .00 4 each 2421283-1 Gasket Square gasket $13.0( $52.00 16 each 21517002- Lock Washer $26.0( $416.00 175 4 each 2421284-1 Gasket Square gasket $15.0( $60.00 16 each 21517002- Lock Washer $26.0( $416.00 175 60 each 2420792-1 Gasket $78.0 $4,680.00 380 each T3907-186 Lock washer $8.00 $2,880.00 4 each 24115046-2 Gasket $39.01) $156.00 32 each T3907-188 Lock washer $B.00 $256.00 2 each 2415046-2 Gasket $39.0) $78.00 16 each T3907-lB6 Lock Washer $8.0) $128.00 Page 6 of 20 (Continued on ne)d page) SubTota : $11,216,674.00 Ta)- Shippin( SCHEDULED DELIVERY DATE; Totar: IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REOUEST BELOW, OR SUOMIT MEMORANDUM. U I hereby cattily that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEEOMITMENT USE ONLY W I PURCHASE REGASITION CITY Of: VERNON, CALIFORNIA LP No LIGHT & PqFR - 4983 DEPARTMENT: �REQUESTOR NAME: rjr)�IAF (),rAl I Ar.WAN I . IM(. DATE-. 11`16/2007 W SUGGESTED VENDOR: 40.:( ffl91890-5000 bit Nb VENDOR ADDRESS: VVAY--f-fAMf11L;--'N1,-,4 1EW j ISFY 08 638 o4v NOTTIN13HAM FAX C CONTA T PERSON: Qrle= 141 IT17HINSON fUU REQUIFtED DELJ%W�R/�EnVtCEDATE: RUSH DELIVERY OR SERVICE LOCATICIN: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X NO_ OUANT" MTbFMSL* DESCRIPTION. UN[T PRICE EXTEK;061D AIAOUNT 1 (Continued from previous page) $11216674. $11,216.674 00 .00 20 each T391 0- 186 Lock washer (folded) $5.00 $100.00 6 each T3706-133 Gasket metal sheeted $16.00 $96.00 6 each T39`10-204 Lock washer (folded) $6.01Z $36.00 100 each� 21517002- Washer $1 1.0c $1,100.00 195 60 each 242191D-1 Spacer ring $13.0( $780.00 60 each 2421910-2 Spacer ring $180 $1.080-00 60 each 2421010-3 Spacer ring $19.01 $1,140.00 60 each 24219104 Spacer ring $22.00 $1,320.00 60 each 2420792-1 Gasket $78.00 $4.680.00 each T3910-179 Lock waShef (folded) $24.00 Page 7 of 20 (Continued on next page) SubTotal: $11,227,030.00 Taw shlippin� SCHEDULED DELIVERY DATE: Tota IF: ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I" I hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT Usk.QkQ ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUM1183ERJ PURCHASE REQ CITY4& VERNON, CALIFORNIA aSITION 1 0 LIGHT& PCWR LP No. 4984 (------------]REOUEST6R NAME: r)()NAL 0 IDATE: t t 161210 0 F ----------- 11� DEPARTMENT. 'CALLAGHANI IMC SUGGESTIMM'ENDOR PHONE NO.: VENDOR ADDRESS: IIANA I-A-1-AX HAM11 T N N JERSEY 08638 l4(yf:Fjt4GI FAX 0: CONTACT PERSON: SCOTT HUTCHI REQUIRED 12MEWSIEUP DELIVERY OR SERVICE LOCATION: 4 ACCOUNT NO.' ITEMS BUDGETED YES� *NO QUANTITY UM V1 DE SCRIPT", UNIT PRICE EXTENDEO AMADUNT (Continued from previous page) $11��7030. 00 $11,221,030 .00 1 $71.00 $142.00 2 each T37WI38 Gasket $5.00 $10.00 2 each T3712-314 Gasket $38.00 $2,260-00 60 each 2420702-1 Lock washer (folded) $5.00 $250-00 50 each T3910-185 Lock washer (folded) $8.00 $1,360.00 170 each T3907-186 Lock washer $25.00 $1,250-00 50 each 242D475-1 Seating Outer seal strip $67.00 $3,350-00 50 each 2420476-1 Seating Inner seal strip $12.00 $1,200-00 each N20700-1 Lock washer $3.00 $72.00 24 each .13408044. Wke round, stainless 139 $18.00 $1,800-00 100 each 2420703-2 Retaining ring internal page 8 of 20 (Continued an next Page) SubTojal $11,238.744-00 Tax Shipping SCHEDULED DELIVERY DATE: Total IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby cenity that the abOye items ace necessary for the operation of this Depadmeni Department Head or Authorized Person FOR PURCHASING-*, *110iff USE ONLY' ISSUED BY DATE REGEIVEDBY DATE PURCHASE ORDER NUMBER CITY-bF VERNON, CALIFORNIAS PURCHASE S TION LP No. LIGHT & R 4985 DEPARTMENT: REQUESTOR NAME: I DONA' O'CAJ I AGHAN I IMC— DATE. — t&F, SUGGESTEDVENDOR: PHONE NO.: ( 609)890-5000 VENDOR ADDRESS: 'EW ERSEY 0863 8 AM,WAy 1 lAmILTAD" FAX 0: CONTACT PERSON: SCr)TT 141 ITCHINSC)N - -1190 REOUIRED DELWIR 6FIVICE DATE: RUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNTNO.: ITEMS BUDGETED YES X NO- ou QUAHM uwr OF WkM 20"500 DESCRIPTION V.1, UNIT PRIGE EXTENDeD.AMOUNT I (Continued from previous page) $11238744. $11,238,744 00 .00 100 each T3905-165 Lock washer (folded) $8.00 $800.00 50 each 2420475-1 Sealing Outer seal strip $25.150 $1,250.00 50 each 2420476-1 Searing inner seal sirip $3,350.00 50 each .2420477-1,, Seallng Seal strip $67.0( $3,350.00 50 each 2423340-1 Sealing Rear seal strip $75.0( $3,750.00 100 each 2420703-1 Retaining ring internal S34.0( $3,400.00 so each 2420702-2 Lock washer (folded) $37.0( $1,850.00 20 each 2420490-1 Lock nut Of Steel $2.00 $40-00 i 174 each 2423585-1 Searing blade 1 $120.01) $20,880.00 6 each 2424155-1 Sealing $1.01) $6.00 Page 9 of 20 (Continued on n&A page) SubTota: $11.277,420.00 - Tom Shippini: SCHEDULED DELIVERY DATE: TOW 'TC IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REOUEST BELOW, OR SU13MIT MEMORANDUM. j . I hereby Certify that the above Items are necessary tof the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USEPW ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER r)r-r3AI7ThAr:MT Cl*bF VERNON, CALIFORNIA e. 1- 0 4.113AFITIINT TREQUESTOR NAME: PURCHASE REQASITION LIGHT & PqPR LP No. 498 DATE: A 1. SUGGESTED VENDOR: PHONE NO.: 6041890-5000 VENDOR ADDRESS: FAX SEY 086.3. CONTACT PERSON: SGOTT HLITGNINSON REQUIRED DELI W&DATE: DELIVERY OR SERVICE LOCATION: 4963 S010 ST ACCOUNT NO.: ITEMS BUDGETED YES NO OUANTITY 055, Lm oF =uF 10"2 5W IDES6 iiPT.*:.NT;t.! UNIT PRICE EXTEM)ED AMOUW I (Continued frorn preAous page) $11277420 0( $11,277,420 .00 6 each 2420137-1 Lock plate blade 1 $829.00 $3.774.00 174 each 2423582-2 Scaling Blade 1 $38.0( $6,612.00 34 each T3905-178 Lock washer (folded) $8.01 $272-00 296 each T3907-178 Lock washer $5.0( $1.480.00 .22 each T3905-178 Lock washer (folded) $8.011 $176.OD 12 each 21517002- Lock washer $18.01) $216.00 162 20 each 2420211-1 Sealing Seal strip $237.0 $4.740.00 104 each 2420534-1 Sealing Outer sealstrip $74.01) $7,696.00 104 each 2423255-1 Sealing Inner seal strip $75.0) $7,800.00 2 each Ai551860- Plastic foll $47.0) $94700 Page 10 of 20 (Con0nued on next page) SubTota : $11,3`10.280.00 Ta)-. Shippin I - SCHEDULED DELIVERY DATE: Tota OMIT MEMORANDUM. I hereby certify that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHAI�IN"60AAT'M'ENT USE ONLY ISSUED BY- DATE RECEIVED BY DATE PURCHASE ORDER NUMBER j- PURCHASEREO CITY 'OF VERNON, CALIFORNIA,* &SITION LP No. LIGHT & KWR 4967 DEPARTMENT. IREQUESTOR NAME: DoNAI Q-CA1 LAGHAN t IM�C JDATE- 1/16/2007 t&F SUGGESTED VENDOR: PHONE NO.: 16091890-50 00 SIEMENS . VENDOR ADDRESS: HAMILTON, JERSEY OW-18 840 NOfTINGI KIAWAY FAX 0: . CONTACT KPISON: SCOTT HUTCHINSON Lq9t58?-77 90 REQUIRED OE I RY OR SERVICE DATE: RI ISH DELIVERY OR SERVICE LOCATION; 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X *NO QUANT.M. uwdFtwx DESCRIPTION UNIT PRICE EXTENDMAW",IT. I (Continued from previous Page) $113`10280- $111,310.280 00 .00 4 each A0721170- Pasle lubricant $137.00 $548.00 185 40 each 13408044- Wire round. stainless $3.00 $1,20.00 139 4 each A0721230- Thread'sealing Loctite 542 $61.00 $244.00 55 8 each A`1551160- Tape $ 13.00 $104.00 14 2 each A0721230- Threadlocker Loctite 275 $77.00 $154.00 62 2 each A0721230- LDctfte 243 $77.00 $154.00 61 40 each A1556846- Emery ckAh, no. 100 $3.0( $120.00 35 20 each . A1556846- Emerypaper $3.0( $60.00 36 20 each A1556646- Emery cloth $3.0( $60.00 37 40 each A3496860- Cleaning cloth $4.01 $160.00 41 Page 11 of 20 (Continued on next page) SubTotal: $11,312.004.00 Tax: Shipping: SCHEDULED DELIVERY DATE: Tota W IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW. 08 SUIBMIT MEMORANDUM. I hereby centity that the above items are necessary for the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMIENT USt ONLY ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER nrDA0TAAC1kt1r CIO C PURCHASE RE SIT I CIMOF VERNON, CALIFORNIA* LIGHT & R LP No. 4988 �'DFPARTMENT. IREQUESTOR NAME: 6owU ti-f-Al I AGHAN t 1hdG I DATE: 1/16/2007 LdP SUGGESTED VENDOR: .5000 VENDOR ADDRESS: SIEMENb jER6E-Y 08638 840NuITINGHAMVWe HAMIETEM, FAX iEW CONTACT PERSOK czro-rT HI ITG 1HINSQN REQUIRED DELIMMARY DATE: RUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X NO_ QUANTITY t.%w oF 1VU-04V"000 UNITYRICE� POEM EO AQUW I (Continued from previous page) $11312004. $11,312,004 00 .00 10 each A1556660- Wag brush mottler $2.10C $20.00 12 4 each A1551160- MaskIng tape $4.0( $16.00 12 30 each A8212962- Deposit box $9.0( $270.00 21 70 each A8212962- Deposit box $5.0( $350.00 22 30 each A8212962- Deposkbox $7.00 $210.00 23 96 each A1556990- Assembly glove $11.00 $1,056.00 472 2 each A1551176- Marking paint Stylmark $42.00 31 110 each A2441176- Marking pen Artfine 400-XF W.00 $100.00 48 2 each 13108011- Gasket sheet $1,224.00 2 6 each 17108001- Gasket sheet $81.03 $486.00 143 Page 12 of 20 (Continued on ne)d page) SubTota : $11,315.7'76.00 Tax: Shippinj SCHEDULED DELIVERY DATE: Tota 1: BMIT MEMORANDUM. 0- I hereby canity that the above items are riacessary for the operationof this Department Department Head ot Authorized Person FOR PURCHASIN&DE 00 ISSUED BY DATE RECEIVED BY, DATE --�URCHASE ORDER NUMBER CIT*f. I OF VERNON, CALIFORNIA PURCHASE REOJLSITION LP No. I LIGHT &Pqrs 4989 . - ...... .... — IDATE; A10111117 ' SUGGESTED VENDOR: PHONE NO-: 1 60090-6000 Z) VENDOR ADnPES EW i ER SEY 066 313 4A FAX CONTACT PERSON: RrjarT H11][CHINSON REQUIRED DELIV RY OR SERVICE DATE: is" DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO..* CO ITEMS BUDGETED YES X NO — QUANTITY.`. LWOFISSUS 100-826"500 OEStRIPT�ON UNIT PRICE 9ffEWWAWVlfr (Continued fmm Previous Page) $11315778. $11,315,778 1 00 .00 50 each A15511 160- Cleaning Ossue $25.00 $1.25 . 6.00 40 each A1556950- Refuse sack $2.00 $80.00 3B 20 each A1554944- Battery $i-OC $20.00 3 20 each Ai 554W- Battery $20.00 200 each A6o6E151 Wire Bundlers 390 x 4,7 TS I OL $200.00 6082 4 each A606EO75 Electrtcai tape $3.0( $12.00 4113 10 each T3704-108 PoInI gasket $3.0( $ 30.00 16 each T3725-179 Gasket $2.00 $32.00 10 each T6102-101 Union nut $10.00 4 each T6313-101 plug for pipe coupling $2.01) $8.00 page 13 of 20 (Continued on next page) SubTota . $`11,317,440.00 Taw ShIppinj: SCHEDULED DELIVERY DATE: Tots IF ITEMS ARE NOT suoGETEb, EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. J. 0 I hereby ce%tty thal the above itams are necessary tor the operation of this Department Department! Head or Authorized Poison FOR PURCHASINGIDEPARTMENT USE -ONLY 1��LlEo BY DATE RECEIVED By DATE PURCHASE OADES NUMBER 111=13ADTAArkirr Lli C CITY OF VERNON, CALIFORNIA* PURCHASE REOI&SITION LP No. UGHT & P(WR 4990 '/'DEPARTMENT: IREOLIESTOR NAME: noNm 0'rALLAGHAN / IMC DATE. 1/16/2007 P�L SUGGESTED VENDOR: IPHONENOA 6og/890-5000 VENDOR ADDRESS: IMIN HAMIL40N. 4rW JERSEY 08638 640 -OTTINGHAM FAX CONTACT PERSON: SGOTT HLITrHINSON 609/587 7790 REQUIRED DELIVERY OR SERVICE DATE: RUSH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: ITEMS BUDGETED YES X NO- QUANTITY 055,400 UNIT OF ISSUE 8200 8600 DESCRIPTIOAP�-; UNIT PRlCe, EKrENDED AMOUNNT, (Continued from previous P390) $11317440 $11,317,440 .00 4 each T6815-102 Coup" $5.04, $20.00 4 each T6815-802 Coupling d 8, 114 npt $6.00 $24.00 4 each T6820-102 Pipe coupling, straight $11.00 $44.00 2 each T6830-101 Union $7.00 $14.00 2 eEch T6870-101 Tee coupling $18.0 .$36.00 10 each. T7021-101 Ferrule $1.01) $10.00 6 each ICSA813(3- Nut $90.0) S540.00 1 ro each ICSA8135- Nipple $168.00 2 each ICSA8133- Coupting $12.0) $2.4.00 6 each 1851523-1 Nipple $16.0) $96.00 Page 14 of 20 (Continued on next page) SubTota: $11,318.416.00 Ta): ShIppint : SCHEDULED DELIVERY DATE: Tots : IF ITEMS ARE NOT BUDGETED. EXPLAIN MATURE OF REQUEST BELOW. OR SU13MIT MEMORANDUM. I hefebyCertify that the above Aems ate necessaiy lot the operafton of Itfis DepantrIerd Depanment Head or Authorized Person ONLY FOR PURCHASING'IDEPARTMENT U ISSUED BY DATE RECEIVED By DATE P1 RCHASE ORDER NUMBER CITYJDF VERNON, CALIFORNIA* PURCHASE RE SITION LP No. LIGHT & P*R 49S1 'DEPARTMENT: IREQUESTOR NAME: nnuAl JDATT 11181217107 SUGGESTED ZL)OR- JPHONF NO.:( 609h89O-5000 SIEMENS VENDOR ADDRESS: NOT-T-INGHAM WAY 1,10411 TON EVV IFIRSFY tISSIR —840 V FAX 0: ��90 CONTACT PERSON: SCOTT HUTCHINSON 609, �JU'Z ' - REQUIRED DELIVERY OR SERVIC�E DATE: R I IS DELIVERY 08 SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: 8200 8590 ITEMS BUDGETED YES X *NO QUANT"... UWOF�af� DESCRIPTION UNITPRICE.... 12XTE�M"&D��- I (Continued from previous page) $11318416, $11,318,416 00 .00 8 each 1852416-1 Adapter M12 x 1,5 -RI/4' $31.00 $248.00. 4 each 1852417-1 Nipple $28.00 $112.00 4 each 203592" Quick goupling male S107.01] $428.00 each 2035929-2 Adapter female -male. BSPP-NPT $29.00 $116.00. 4 each 700061311- pipe Connector $21.0( $84.00 A 4 each 700061131- pipe Connector $21.0( $84-00 2 each 70006131- Pipe Connector $21.0( $42.00 C 2 each 70006131- Pipe Connector $211.00 $42.00 E 4 each 70006131- Pipe Connector $19.00 $76.00 0 8 each iCSA8259- Hose -$6.00 $46.00 1 Page 15 of 20 (Continued on next page) SubTotal.- $11,319,696.00 Ta Shippin SCHEDULED DELIVERY DATE: Total: IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE O—F REQUEST BELOW. OR SUBMIT MEMORANDUM. I hereby certity that the above items are necessary lor the operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT UWONL�Y.- ISSUED BY DATE RECEIVED BY DATE PUR�CIHASE ORDER NUMBER n9:PAI7nA9:krr M1 C CITY bF,VERNON, CALIFORNIA PURCHASE RE" 'ITION LP No. LIGHT & Flit, —, R 4992 IDATE. DEPARTMENT: REGUESTOR NAME: imr%mm SUGGESTED VENDOR: VENDOR ADDRESS: SIEWNS "EW JERSE�Y 08638 1340 N)0T-flN0HAM WAY 1 AMILT-01", FAX 9: CONTACT PERSON: HI Ijr8IN'C'()N REOUIREDDELINIMERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.: I ITEMS BUDGETED YES X NO QUANTITY �3_ Un uNrr or issue TM-82Mnee- - - � -.; . - - :,t UNIT PRICE . EXTE;ND;Ei0AM0UW 1 (Continued from Previous Page) $11319696. $11,319,696 0C .00 4 each 1CSA8263- Coupling $60 $24.00 4 each ICSA8261- Coupling $5.0( $20.00 1 4 each ICSA8262- Coupling $4.0( $16.00 40 eacni ICSA81130-Steeve $7.0( MOM I 10 each ICSA7988- Hose $6.00 $60.00 8 each ICSA8257- Gasket $16.00 $128.00 16 each 1CSA82W Gasket $22.01 $352.00 I 10 each 2423623-3 Sealing ring C-seal $155.0). $1,550.00 28 each T1673-538 Hexagon sockethead screw large clearance $42.0) $1,176.00 68 each TIW-542 Hexagonheadbok $156.0) $10,608.00 Page 16 of 20 (Continued on next page) SubTiota : $11,333,910-00 SCHEDULED DELIV ERY DATE: IF ITEMS ARE NOT BUDGETED, EXPLAIN NATURE OF REQUEST BELOW. OR SUBMIT MEMORANDUM. I heLb�lfertity that the above items are necessary for the operationof this Department Department Head or Authorized Person FOR PURCHASiNG O&Afl�ENT �USE- ONLY ISSUED BY DATE RECEIVED iY DATE P1 FICHASE ORDER NUMBER CITY.-DF . VERNON, CALIFORNIA16 PURCHASE REOASMON LP No LIGHT & PWR 4993 DEPARTMENT: IREOUESTOR NAME� C)c)NAL O'CALLAGHAN / IM -F DATE 1/16/2007 SUGGESTED VENDOR: PHONE INO-� ( 609/890-5000 VENDOR ADDRESS: NGIIAMOM FAX If: CONTACT PERSON: SCQTT HUTCHINSON 91587-7719vo. REQUIRED DELIVERY OR SERVICE DATE: RI ISH DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.- ITEMS BUDGETED YES X NO QUANYTrY - 055-1 IjMT0FfSSUE:" DESCRIPTION UNIT PRICE : .. �.. . . 1 11 (Continued frorn previous page) $11333910. $11,333.910 1 00 .00 80 each T3907-176 Lock washer $5.00 $400.00 12 each 2021278-3 Gasket for flange connection $51.00 $6 . 12.00 1 . 2 each 2021276.2 Gasket for Range connection $29.00 $348.00 16 each T2804-126 Hexagon nut $2.00 $32.00 16 each T1624-895 Screw. steel $17.00 $272-00 16 each T2804-124 Hexagon nut $4.00 $&4.00 16 each T1624-644 Hexagon head screw $9.01 $144.00 8 each T37W-316 Gasket $86.0( $688.00 16 each T1622-630 Hexagon head screw $3.0( $48.00 8 each T3717-465 Gasket $99.0( $792.00 Page 17 of 20 (Continued on next page) SubTotal $11.337.310-00 Tax Shipping SCHEDULED DELIVERY DATE: Total IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW. 08 SU13MIT MEMORANDUM. I hereb�" It% - at the ai�ove items are necessary for the Operation of this Department Department Head or Authorized Person FOR PURCHASING DEPARTMENT USi" ii ISSUED BY DATE RECEIVED BY DATE PURCHASE ORDER NUMBER n;ZPAI7-rhArKI1r F:11 c CITY 6F VERNON, CALIFORNIA PURCHASEREG I ON LP No. LIGHT& P �DEPARTMENT: —IREOUESTOR NAME: DATE: SUGGES7ED VENDOR: —Tp—HoNE No-:!6o9i8qo-5000 — - ---7StEMENS- VENDOR ADDRESS: 38 - - 840 H.OffING! !AM' FAX 0: CONTACT PERSON: Rr ()TT HIITrHINqQN 609687-77919 REQUIRED DELIVERY OR SERVICE DATE 171 DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. �,ACCOUNT NO.: ITEMS BUDGETED YES X NO_ QUANTITY j,.10'F0C&'Ur DESCRIPTION:,, UNIT PRICE EXTENDED AMOUNT 1 (Continued from previous page) $11337310. 00 $11.337,310 .00 16 each T1622-676 Hexagon head screw galvanized WOO $80.00 2 each A0721170- Paste lubricant $1137.00 $274.00 185 2 each A44311W Teflon band $2.00 $4.00 63 2 each W68611 10 Wire brush $4.00 $8.00 -3 2 each AlW1M Masking tape $4.00 $8.00 12 2 each A1551160- Tape $13.00 $26.00 14 2 each A606EO75 ELec�l tape $3.00 $6;00 4113 8 each T681"02 Coupling d 8, 1/4 npt $6.00 $48.00 each 1852417-1 Nipple $28.00 $224.00 6 each 18524165--1 Adapter M12 x 1.5-RI/4' $31.00 $186.00 Page 18 of 20 (Continued on next page) SubTotal: $11,336,174.00 Tax: Shipping: SCHEDULED DELIVERY DATE: Totall W IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW. OR SUBMIT MEMORANDUM. �Ej iereby 66rtily Thal the above items are necessary tat the operation oI this Department Department Head or Authorized Person' FOR PURCHASING DEPART"EINT USE ONLY ISSUED BY DATE RECEIVED BY DATE P�LIRCHASE bOADER NUMBER 6 co, bF VERNON, CALIFORNIA PURCHASE REQUISITION LIGHT & PVR LP NO- 4995 DEPARTMENT: REQUESTOR NAME: nnNAI LC; DATE: 1/16/2007 SUGGESTED VENDOR: PHONE NO.: SIEMENS VENDOR ADDRESS: ; 8638 E)fTINGHAMWArY 11AMILTOPI-IlEWiERSEY FAXO: CONTACT PERSON: SCOTT HUTCHINSON REQUIRED DELIVERY OR SERVICE DATE: DELIVERY OR SERVICE LOCATION: 4963 SOTO ST. ACCOUNT NO.- ITEMS BUDGETED YES X NO DESCRIPTION UNITP E Ric EXTENDED A�� (Continued from previous page) $111338174. $11,338,174 00 .00 6 each 2035928-8 Quick goupling male $1107.0C $642.00 6 each 2035920-2 Adapter female-m3te, BSPP-NPT $29.00 $174.00 6 each T3725-179 Gasket $2.010 $12.00 50 each ICSA8386- Teflon hose $5.01] $250.00 50 each JCSA8253- Spring $3.0( $150.00 40 each T6102-101 Union nut $1.D( $40.00 40 each 70005795- Adapter $39.0( $1,560-00 8 each A6031260- Bycotest C5 Cleaner Dangerous Goods $25.0( $200.00 4 10 each A155117G- Rust oil WD 40 Dangerous Goods $21.0( $210.00 68 8 each A6831260- Bycolest RP20 Penetr, colDured Dangerous $25.0( $200.00 2 Page 19 of 20 (Continued on next page) SubTotal: $11,341,612.00 Tan Shipping: SCHEDULED DELIVERY DATE: Total: IF ITEMS ARE NOT BUDGETED. EXPLAIN NATURE OF REQUEST BELOW, OR SUBMIT MEMORANDUM. I hereby cm�e"" that thee '�ove items are necessary for the operalion of this Departfnent Department Head or Authorized Person FOR PURCHASING DEPARTMENT USIE-.' ISSUED 13Y DATE RECEIVED BY DATE PURCHASE ORDER NUMBER mparmArwir vii c . V:o CITY F v k, N Ll('1,1'1'& POWER W. wt 49 By — I PLEASE INVOICE IN DUPLIC i I'll III vi IU - II(ol"i....I.0" 1, 1. 0" N. IN IA I I- ANA r; I !I A'I 1,1,%'i IN. CA 'AIW-Ii (_p N r.T.TTIT IP -B 0 7 200 T 0 ATTN: V D CJ FOG VERNON, CALIFORNIA UNLESS OTHERWISE SPECIFIED BELOW WAREHOUSE CLOSED ON FRIDAYS —RIDIGHT Fox. TERMS:� SF DiPAWMFINIT i ASOLmTtONNO. DELIVER(DATE p ITEM NO. OUANTTTY UNIT IS" STOCK NO. DESCRIPTION GTy' Reco TAX UNIT PACIE WENOW AMOUNT 1 -'7 'J' 'A. :io il�- 1 7, f- !C 1.� 'Je-. m -7; 17 :? :2v j 1, jz f C. F. r.'P -V. '4 C. '21 j7 t r '7; L: .It C. 7 j� l.f w! mm CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT BY', CITY OF VERNON, CALIFORNIA PAYMENT APPWWED DEPT. HEAD OR AUTHORIZED REPRESENTATIVE PURCHASING AGENT DAT I. 0 5 PLEASE INVOICE IN DUP C L F I'Al F 1 11 , i I i W.:!:., I i Q 11MVPM Ibm- "—:i;-.;;': VENOORN0.0 P T 0 ATTN: v 1.7 E N 0 0 R F013 W�RNON, CALIFORNIA UNLF�-S OTHERWISE GPECIF;tal WAREIIG']`�k: i C-ST'D ON FHIL'AYS RECUtSMON M DENEFfi 6A�' T PLUS FREIGHT F.O.B. 15CPM�eW ------ --- --------- - - --------- - - 'ITEM OUANnTY UNIII No. ORDERED ISSUE STOCK NO. DACRIPTION RECO TA)C UNIT PRICE EXTENDED AMOUMT 7:: A., t 1! A j"i- T f. - d: :..?.:!( j�. L%-v CONFIRMING ORDER: CITY OF VERNON, CALIFORNIA PAYMENT APPROVED DEPT HEAD OR AUTHORIZED C -r-Y F VERON _51; 1 4305 Samis Fe Avenuc 9 Vemon, CA 90059 (�ij) sum I I DATIf 1./ 06 0 VENDOR NO.:; V N o I0 Ml -1 0 It PLEASE INVOICE IN DUPLIC El-Ml, v i VI-IVNI iNk.A "OBiN P T 0 ATTwi- FOB VERNON, CALIFORNIA UNLESS OTHERWISE SPECIFIED BELOW. 'Wc,REH0U%E C1.0SED ON FRIDAYS DEPARTMENT REWISITIO NO. a VELIVEHY DAI L lt;HN%b "L'J'� ....... . ... ----------- (IT—EM Na OtJANTiTY ORDERED UNIT ISSuE STOCK NO. 0ACnIPTION CITY' ftEC'O TAX UNIT PRICE EXTENDEDAMOUNT J. -j y T L, T. .171Q.,:.. t-;A. t it7, I:; L 47W! k% j ".4 J. I �i!3 C A- 14. to". CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUWT ec� CITY OF VERNON, CALIFORNIA PAYMENT AFFF4NFO DEPT. HEAD OR AUTHORIZED REPREKWAD". db DATi PURCHASING AaEN1 El �-Nl & 4 305 %"is For Avcnuc Virrsion, CA 9ODSH DAT402,'470-'i I.' VENDOR NO.:: I V E N H U.-A-l"! 0 PLEASE INVOICE IN DUPLIC 1, -'7 H P P T 0 FOS VERNON. CALIFORNIA UNLESS DTHCRWISF, SPE CIFIFV OEL-11,1) -66—ARTMEPiT - -------- K- -0U-lS-M-ONN0--.' T D'—EU- V-EI --------- ------ ------- - ------- - (i�� I NO. OUANTITY ORDERED UNIT ISSUE s STOCK NO. OESCRIPTtON OTY. FrEcla TAX UNIT PRICE EXTENDEDAMOUNT t t i; Vj�j I :+ J 13 71 A ra, ;f-) "Jj:. 41 -j CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT CITY OF VERNON, CALIFORNIA 06 11 PAYMENT APPROVED by:: DATE DEPT. HEAO OR AUTHORIZED REPRESENTiTrwac PURCHASINGAMPOr: ji 2' C i TY 0 F Vil R I ;N 4305.Ums Fe Avenuc Vemon, (A 90058 .4:1 E 0 w j f� w-%c R ---, --- i ; =. i: PLEASE INVOICE IN OUPLIC i I vi RN4 IN - 1. L p rl (I m H I P T 0 ATTN: FOB VERNON, CALIFORNIA UNLESS OTHERWISE SPECIFIED BEL' IW. DEPARTMENT ---Av(-U-lS-rn0—N N-0. D-E,,U---V-E-fl-Y, -0-A-T-E-- TE�im'sl, v 41, ehEm Na. ommTrry ORDERED UNIT issue STOCK NO. DACRISMON ary. REC'D TAX UNIT PRICE EXTENDED AMOUNT L V. A A '2 I IA J N�. ic, y:' V.1 Sis 21 ?-ji Lf;t'i I I' F—.'. t� 4 li 1': 3 R" CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT CITY OF VERNON, CALIFORNIA PAYMENT APPROVED BY.: DATE DEFT. HEAD OR AUTHORIZED REPRE6ENTAIM PURCHASING ACIEN1 In !Iov. - Vcrnoa. (A 90058 Seats Be Avcnuc (323) 5113-0111 CU7U.-) 7-2,, T-,.- -7 Fl E �.00 R -0. 1 v -,� I � 1!�7,i �� E t4 D N!.i; 0 R PLEASE INVOICE IN DUPLUAmMon. s H p T 0 ATTN: F06 VERNON. CALIFORNIA UNLESS 0TIIERI%ISE 11, Eo:F!FD BF�lli)lov� DEPARTMENT REQUISITION!"O. DELIVERY DATE I TERMS PLUS FREIGHT - ----- --- . ..... . ...... - ------- (I'TEM 1 OUANTITY ORDERED ISUMT sue STCr No' DESCRIPTION OTY. AEC .0 TAX UNIT PRICE EX'rENDEDAMOUNT 17 m i:T F-1 r.. V i%'J f qj I ti- lj �J.. %! E. (7. J.-J� �t.,'. f if. CONFIRMING ORDER: CITY OF VERNON, CALIFORNIA PAYMENT APPROVED BY:: DATE OEPT HEAD OR AUTHORIZED REPRESENTATIVE PV.CHASWO AGENT OF Vi"RON PLEASE INVOICE IN OU PLI—I 4"5 Uses N Avcnuc Vemon, CA 9005H ob) $83-8411 m --rl Cu v F ENDOR NO.: I P T 0 ATTN: V I. a 1: E N 0 -k 4 -J-i I I i'l 31- R FOS VERNON. CALIFORNIA UNLESS OTH.-IRMSE SPECIFIE0 DEPiiiWEWT PLUS FREIGHT 1 ;041 rm;� OUANTITY IINIT CITY. ----------- No. CIFIDERED ISSUE STOCK NO. DESCRIPTION FIECD TAX UNIT PRICE WENDED AmouNT Ij .,it A d. 1 �N. CONFIRMING ORDER: CITY OF VERNON, CALIFORNIA PAYMENT APPROVED DATE DEPT READ OR AUTHORIZED REPAESENIATIVII 13AT PURCHASING ADM ITY OF'VEW& PLEASE INVOICE IN DU LIC 7 p LICAIT& POWFIZ "N't 4- .4301 Sent& Fe Avenue - Vernon, CA 90058 1323) 583-8811 s H 0 ArrN' V E lUti N D .: o -mr�a,:; I— c�i;, R FOS VERNON, CALIFORNIA UNLFSS OTHERWISC SPEC] FIED BE I OW. _66w TFRMS ___ 6; i PLUS FOS. fir moN No. CFELI E :F - - - ------ ----- ....... 'ITEM 0uwnTY T OTY. NO. ORDERED ISSUE STOCK NO. DESCRIPTION REVO TAX UNIT PRICE EXTENDED AMOUNT .1w F T "'JIL :j ?4 f- 'D 2; E1!_-'I.Dt,1 1;."r 1. 5( Pit.; 0 CONFIRMING ORDER: ACCOUNTNUMBER PROJECT AMOUNT CITY OF VERNON, CALIFORNIA PAYMENT APPROVED DEPT HEAD OR AUTHORIZED REPRESE14141Wt. w T PURCHASING AOINT�' c rry 17, 1.1(al I & vowil, d305 Santa Fc Avcnue - Vernon, CA 90058 (J23).583.8811 (ny- I I �11- I v j% E 5 N 0 W 1: I.jf:: �i PLEASE INVOICE IN DUPLIC 7 V "A", v, I FAVI- L I.. 1:1INLIN. f.A �nh;;: LF, !,-lc�� s H p T 1 0 ATTN: FOB VERNON, CALIFORNIA UNLESS OTHERWISE "'m i:roms -D-iF;;-VifMEIW REOWSITION NO. IVEAY DATE TEAMS '.PLUS FREI HT F.O.B. I 13P i- f� - ------ ------ ...... ITEM NO, �OUANTIT�YUNIT I ORDERED I ISSUE STOCK NO. DESCRIFITION QTy- Arclo TAX UNIT PRICE �T j CONFIRMING ORDER: ACCOUNT NUMBER PROJECT AMOUNT CITY OF VERNON. CALIFOfINIA PAYMENTAPPROVED BY:: DEPT HEAD OR AUTHORIZED REPRESENTATIVE DATE PURCHASINGAOENT "I Schedulej.jf�j Purchaser Required Governmental Approvals I Authorization by the FERC pursuant to Section 203 of the Federal Power Act of Purchaser's acquisition of the Malburg Generating Station. 2. Authorization from the FERC pursuant to Section 205 of the Federal Power Act to sell capacity, energy and ancillary services at market -based rates. 3. Issuance by the South Coast Air Quality Management District of a South Coast Air Quality Management District RECLAIM/Title V Facility Permit — Facility ID 14502 to/in the name of Purchaser for Malburg Generating Station air emissions equipment. 4. Approval by the FCC of Purchaser's application(s) to transfer Radio Station Authorization effective as of February 15, 2006. 5. Approval from the California Energy Commission ("CEC") to transfer ownership of the Malburg Generating Station to Purchaser, pursuant to the CEC's May 2003 Certification of the Malburg Generating Station and Section 1769(b) of the CEC's Power Plant Site Certificate Regulations. I In addition to Purchaser Required Governmental Approvals, Purchaser is required to provide notice with respect to the following permits: I Industrial Wastewater Discharge Permit No. 16237. 2. Notice of Intent (NOI) for coverage under General Permit No. CAS000001 (Discharges of Storm Water Associated with Industrial Activities Excluding Construction Activities). The approval from the CEC to transfer ownership of the Malburg Generating Station to Purchaser may be obtained post closing. 3. 1 (a) Schedule 3.1(b) Required Consents MALBURG GENERATING STATION Applicable Agreement Consenting Party Vernon Agreement between City of Vernon and NALCO Company, dated NALCO Company September 5, 2006 Ammonia Delivery Purchase Contract between Vernon and Hill Brothers Chemical Company dated December 3, 2004 Hill Brothers Chemical Company Amendment to Ammonia Delivery Purchase Contract between Vernon and Hill Brothers Chemical Company dated August 28, 2006 __j 3. 1 (b)- I Schedule Mfk) Performance Criteria NOTE: When using this table, the results should be adjusted to reflect the expected performance degradation of the Facility based upon the Equivalent Operating Hours (as that term is defined in the LTSA) as of the PTC 46 test date. The Corrected net power values shall be within 98% + 1 %/-2% and adjusted to the Siemens new and clean guarantee conditions as set forth in the performance guarantee test procedures. Parameter Average Corrected Net Power with Uncertainty Applied 134 MW (duct firing) Corrected Net Power with Uncertainty Applied. 120 MW (base) 3. 1 (k)- I Sebedule 4.1(c) Seller Required Governmental Approvals - L City Approval 2. Issuance by the South Coast Air Quality Management District of a South Coast Air Quality Management District RECLAIM/Title V Facility Permit — Facility ID 14502 to/in the name of Purchaser for City of Vernon air emissions equipment. In addition to Seller Required Govenunental Approvals, Seller is required to provide notice with respect to the following permit: 1. Notice of Intent (NOI) for coverage under General Permit No. CASOOOOOI (Discharges of Storm Water Associated with Industrial Activities Excluding Construction Activities). 5.1(c)-1 None. Schedule Violations and Required Filings 5. 1 (c)- I Schedulefl(41 Seller Required Other Consents, Approvals and Notices Seller to provide notice to Thomason Mechanical Corporation Services of assignment to Purchaser of Agreement between Vernon and Thomason Mechanical Corporation, dated March, 2006, as amended by First Amendment to Services Agreement between Vernon and Thomason Mechanical Corporation, dated July, 2006 and Second Amendment to Services Agreement between Vernon and Wood Group Field Services, Inc. (FKA Thomason Mechanical Corporation), dated October 4, 2006. 5. 1 (d)- I Schedule 5.1(e) Financial Statements [Separately provided] 5. 1 CITY OF VERNON, CALIFORNIA Annual Financial Report Fiscal Year Ended June 30, 2006 5�� VI; CITY OF VERNON For the Fiscal Year Ended June 30, 2006 Table of Contents Pagp(s) FINANCIAL SECTION: IndependentAuditor's Report .................................................................................................................. 1 Management's Discussion and Analysis (Required Supplementary Information -Unaudited) .................... 2 Basic Financial Statements: Govemment-wide Financial Statements - Statementof Net Assets ............................................ ............................................................ 13 Statement of Activities ................................................ ......................................................... 14 Fund Financial Statements: Governmental Funds: BalanceSheet ..................................................................................................................... 15 Reconciliation of the Governmental Funds Balance Sheet to the Government -wide Statement of Net Assets-Governmenial Activities ........... w ......... 16 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................ 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -wide Statement of Activities - Governmental Activities .................................................................................................. 18 Proprietary Funds: Statement of Fund Net Assets (Deficit) .............................................. ..................... I .......... 19 Statement of Revenues, Expenses, and Changes in Fund Net Assets (Deficit) ..................... 20 Statementof Cash Flows .................................................................................................... 21 Notes to the Basic Financial Statements ............................................................................... 22-58 Required Supplementary Information (Other than Management's Discussion and Analysis- Unaudited): General Fund Budgetary Comparison Schedule ......................................................................... 59 Notes to General Fund Budgetary Comparison Schedule ........................................................... 60 MACIA5 GIN] O'CONNELLLLP CE.RnFIED PUE)LIC ACCOUNUNTS & -AGEMENT CONSUL7ANT5 INDEPENDENT AUDITOR'S REPORT City Council City of Vernon, California 3ODD S Street Sulte 300 Sa--nto. CA 9SS16 16 . 920.466D 2175 N. California Soul—rd. SUiEe MS, Walnut Creek. CA 94S96 v?5 174,01911 5 15 S. Figueroa Street. Suite US Los Mgzl.. CA "071 296.640 0 402 We,, Bd—y. Suite 400 San Diego, CA 92 1 01 573.1 12 I We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Venion, California (City) as of and for the fiscal year ended June 30, 2006, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standard& require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for out opinions. In our cl pinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2006, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America. 'Me management's discussion and analysis and budgetary comparison information on pages 3 through 15 and 61 through 62, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Certified Public Accountants Los Angeles, California December 15, 2006 -w—mliotpa.com A� Ind.p..d.- M.-b.f f ch. BDO S.ldnio" Alliance 2 CITY OF VERNON, CALIFORNIA Management's Discussion and Analysis For the Fiscal Year Ended June 30, 2006 (Unaudited) As management of the City of Vernon ("the City"), we offer readers of the financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2006. Financial Highlights The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $309,809,955 (net assets). Of this amount, $61,260,285 (unrestricted net assets) may be used to meet the City's ongoing obligations to citizens and creditors. The City's total net assets decreased by $26,923,957. This decrease is attributable to the governmental activities generating a, decrease. in net assets before transfers of $12,300,323 and the business -type activities generating a decrease in net assets before transfers of S 14,523,634. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $59,741,236, a decrease of $4,554,758 in comparison with the prior year. Approximately 21% of the governmental funds balances, $12,808,623, are available for spending at the City's discretion (unreservedfind balances). overview of the Financial Statements This discussion and analysis are intended to. serve as an introduction to the City's basic financial statements. The City's basic financial statement$ comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safely, public works, and health services. The business -type activities of the City include the Light and Power Department, Gas Department and Water Department. The government -wide financial statements can be found on pages 13-14 of this report. Fund financial statements. Afund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and -2- local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. Governmentalfunds. Governmentalfunds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and ou�flows of spendable resources, as well as on balances ofspendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental _funds with similar information presented for governmental activities in the government -wide firlancial statements. By doing so, readers may better understand the long-term impact of the government's near -term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmentalfunds and governmental activities. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. The basic governmental ftinds financial statements can be found on pages 15-18 of this report. Proprietary Junds. The City maintains two different types of proprietary funds. Enterprise)unds are used to report the same functions presented as business -type activities in the govenunent-wide financial statements. The City uses enterprise funds to account for its Light and Power Department, Water Department, Gas Department and Fiber Optic Department. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet of vehicles, insurance, and retirement. Because these services predominantly benefit goverrimenial rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Light and Power Fund and the Gas Fund, which are considered to be major funds of the City. Conversely, the internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. The basic proprietary fund financial statements can be found on pages 19-21 of this report. Government -wide Financial Analysis As noted earl ier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $308,808,855 at the close of the most recent fiscal year. - 3 - City's Net Assets Nt the end of the current fiscal year, the City is able to report positive balances in all categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. The category of the City's net assets with the largest balance totaling $213,975,958 (69%) represents resources that are invested in capital assets, net of related debt. The second largest category of net assets, $61,260,285 (20%) represents unrestricted net assets that can be used to meet the City's ongoing obligations to, its citizens and creditors. The last remaining category of net assets, totaling $33,572,612 (11%) represents the City's restricted ,assets, which is restricted for special purposes and payment of long-term debt. Changes in Net Assets Governmental activities' net assets decreased by $33,745,927 and business -type activities' net assets increased by $6,921,970 for a net decrease of S26,823,957 for the City. The decrease in the governmental activities was caused by the governmental activities reporting a $12,300,323 decrease in rie . t asset before transfers and a $21,445,604 operating transfer out to the business -type activities. The increase in the business -type activities was caused by the $21,445,604 of operating transfer in from the governmental activities less the $14,523,634 of decrease in net asset reported by the busincss-type activities. City of Vernon Net Assets June 30, 2006 and 2005 Assets; Current and other assets Resificted assets Capital assets Total assets Liabilities Current liabilities Long-rcm liabilities Total ]WbililiCS - Nei Assets: Invested in capital assets. net of related debt Restricted Unrestricted Total net assets Gowrnmental Activities Business -type Activities Totals . 20(% 2005 2006 2DO5 2006 2005 S 51,354,912 S 40.015,669 89,343,037 81,468,279 398,508 74,614,172 S 561,097.165 47,550,737 316.293,591 S 123,914,496 73,744.545 282,137.513 $ 612,452,077 S 87.566,406 405,636,628 205,382,775 74.133,053 356,751,685 180,713,618 156,470,959 924,941,493 479,796,554 1,105,655,111 636,267,513 13.378,105 55.183,416 7,244,297 3,328,638 29,528,656 ISM756,079 23,916,473 266,145,293 42,906,761 753,939,495 31,160,770 269,473,931 68 561,521 10,572,935 728,284,735 290,061,766 796,846,256 300.634,701 %9,899,751 3,296,017 18,965,429 74,614,172 338,664 70.945.188 124,0116,207 30,275,695 42,294,856 114.353,358 42,935,885 32,445,545 213,975,958 33,572.612 61,260,285 188,967,530 43,274,549 103,390,733 S 112.152,097 S 145.898 024 S 196,656,758 S 189,734,788 1 S 308.808,855 S 335,632, 12 I -4- Revenues: Program Revenues: Charges for services Operating grants and contributions Gcncral Revenues: Taxes State allocations Investment income Gain on sale of propcny Other revenues Total revenues Program Expenses Govemnicrital activities General government Public safety' Public works Health services Interest on long-term debt Busincss-typc activities Light and Power Gas Other Total expenses Increase (decrease) in net assets bcforc transfers Transfers Increase (decrease) in net assets Net assets- beginning ofycar NCLaSSetS- end ofycar City of Vermont Changes in Net Assets Fiscal Year Ended June 30, 2006 and 2005 Governmental Activities GusincSs-typc Activities Totals 2006 1 2005 2006 2005 2006 2005 S 10,850,093 S 10,691,792 $ 175,611,547 S 116,681,653 S 186,461,640 S 127,373,445 290,414 192,335 - - 290,414 192,335 17,021.021 . 17,093,349 17.021,021 17,093,349 4,685,752 4,835,991 4,685,752 4,835,991 2,624,478 902,085 2..254,436 4,771,013 4,878,914 5,673.098 43.985 1,659,870 43,985 1,659,870 406,334 � 738,463 406,334 738,463 35.922,077 36.113,885 177,865,983 121,452,666 213,788,060 157,566,551 19,944,193 13,667,855 19,944,193 13,667,855 (9,613,951 20,240,186 19,613,951 20,240,186 5,542,660 4,857,135 5,542,660 4,857.135 1.397,093 1,311.479 1,397,093 1,311,479 1,724,51.3 373,879 1.724,513 373.879 - 149,424,972 97,683,923 149,424,972 97.683,923 36,953,697 - 36,953,697 6,010,948 5,845,618 6,010.948 5,845,618 48,222,400 40,450,534 192,389,617 103,529,541 240,612,017 143,980,075 (12,300.323) (4,336,649) (14,523,634) 17,923,125 (26,823,957) 13.586,476 (21,445,604) 72,515,570 21,445.604 (72,515,570) - (33,745.927) 68,178,921 6.921,970 (54,592.445) (26,823,957) 13.586.476 145,898,024 77,719,103 189,734,788 244,327,233 . 335,632,812 322,046,336 145,898,024 IS 196,656,758 S I R9,73 4.7aa I S 308,808,853 S 335,632,8 J12 Governmental ictivi ties. Governmental activities decreased the City's net assets by $33,745,927. This is a decrease of $101,924,848 from the prior year. The key reasons for this decrease and change in net assets are as follows: • In the prior year, the Light and Power Fund transferred $66,846,257 of its 2004 Taxable Series D Bond proceeds to the General Fund to reimburse the General Fund for costs incurred in connection with the City's Electric System since inception (1934). • In the current year, the governmental funds transferred a net of $21,445,604 to the enterprise funds. The main reason for this transfer was to complete the construction of the Malburg Generating Station and to upgrade the City's electric transmission and distribution systems. • In the current year, decrease in net assets before transfers increased $7,963,674 from the prior year. The main reasons for this increase are as follows: -5- o In the current year, program expenses of the general govemment increased $6,276,338 from the prior year. The key components of the increases were as follows: • Administration costs increased S),050,749 from the prior year due to an administrative reorganization, legal and consultant fees and the installation of 9- 11 security measures, including personnel, at the City's new power plant facility. • Finance costs increased $1,058,715 from the prior year due to the additional consulting cost related with the implementation of a new finance system. • Insurance costs increased $956,965 from the prior year due to additional property being insured. • Legal costs increased $1,001,828 from the prior year due to various legal matters of the City, • Personnel costs related to the City Clerk, Elections, Treasurer, and Personnel incrmed in total $1,068,848 from the prior year due management. reorganization and various legal matters of the City. The City earned a higher return on its investments as compared to the prior year due to additional debt proceeds invested in the current year. However, this higher return was offset with the higher interest expense associated with the debt. Expenses and Program Revenues — Governmental ACtiViLieS r- *k. V;-.1 V- P�A-4 T-A IA WMA -A WIAI $20,000,000 $16,000,000 $12,000.000 $8,000,000 $4,000,000 t Y4. f.Z, A n M 0� Cl.> C3 N 919 �\ Q� el -6- 0 2006 Program Revenues @2006 Expenses 0 2005 Program Revenues 02005 xpenses Revenues by Source — Goverranentat Activities For the Fiscal Years Ended June 30, 2006 and 2005 2006 Governmental Activities Revenues Olher Taxes & Revenues Franchise Taxes 13% Parcel Taxe 19% Sales and Use 1 13% - 7 - Propeny Taxes 20% Charges for Services 31% 2005 Governmental Activities Revenues Transfers 67% charges for Sarvi es I V/6 other Taxes & R—nues Omperly Taxes 4% 7% Frar.hise Taxes Sates and Use Tax" 1% 4% Parcel :- Taxes 7% Busi ness- type. activities. Business -type activities decreased the City's net assets by $14,523,634 before transfers. The key reasons for this decrease and change in net assets are as follows: • Light and Power's operating revenue was $132,565,018 for the current year which is $22,080,123 higher than the previous year. This increase in revenue was mainly due to the Malburg Generating Station becoming operational on October 17, 2005. However, the cost of sales was $127,551,769 which is $38,959,701 higher than the previous year. The increase in cost of sales was mainly due to the unfavorable cost of fuel and wholesale energy market. • Light and Power's depreciation expense was $7,203,894 for the current year which is $2,972,874 higher than the previous year. This increase was due to the Malburg Generating Station becoming operational on October 17, 2005. • Light and Power's interest expense was S9,179,326 for the current year which is $7,868,491 higher than the previous year. The main reason for this increase is that tile interest expense related to the Light and Power 2004 Taxable Series A, Series B, and Series C Bonds are no longer being capitalized since October 17, 2005 when Malburg Generating Station became operational. • Light and Power's net legal settlement loss was $5,257,580 for the current year. In July 2006, Light and Power settled a dispute over wholesale power purchase contracts with Mirant Americas Energy Marketing, LP for incurring a loss of $15,000,000, and in November 2006, Light and Power settled a dispute over contract obligations with its former electric distribution system maintenance provider, Resource Management International, Inc., for a gain of S7,400,000. • The Gas Fund became operational in the current year with its main customer being the Light and Power Fund. The Gas Fund generated operating revenue of $36,509,697 with a cost of sales of 536,671,275. Services were provided primarily to the Light & Power fund. , -a- Expenses and Program Revenues — Business -type Activities For the Fiscal Years Ended June 30, 2006 and 2005 ,P I W.Uuu,� $140.000,000 $120,000,000 $100.600.000 $80,000,000 $60,ODO.000 $40.000,000 $20.0W.000 $0 A N. Light and Gas Other Power Revenues by Source — Business -type Activitie's For the Fiscal Years Ended June 30, 2006 and-2005 2006 Business- type Activities Revenues Investment Earnings 1% Program Revenues 99% 2005 Business -type Activities Revenues Investment Earnings 4% Program Revenues 96% Financial Analysis of the Governmental Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Goverrimentalfunds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved find balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. 9- L-1- At of the end of the current fiscal year, the City's g6ernmental funds reported combined ending fund balances of $59,741,236, a decrease of S4,554,758 in comparison with the prior year. Approximately 21 % of total fund balance amount, $12,808,623, constitutes unreservedfund halance, which is available for spending at the City's discretion. The remainder of fund balance, S46,932,613, is reserved to indicate that it is not available for new spending because it has already been committed 1) to liquidate contracts and purchase orders of the current period (S 1,8 12,002), 2) advances and loans receivable in the event of a default by other funds (S4,975,646), 3) to be used for debt service ($2,984,715), 4) to be used for special purpose (S36,007,050), and 5) for a.variety of other purposes ($1,153,200). The General Fund is the operating fund of the City. At the end of the current fiscal year, the total fund balance was $20,960,762 of which $14,019,385 (67%6)'is unreserved. Proprietary funds. The City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net assets for the Light and Power Fund at the end of the year amounted to $69,763,390. Unrestricted net assets of the Gas Fund at the end of the year amounted to a deficit of $27,725,222. Unrestricted net assets of the non -major enterprise funds (Water and Fiber Optic Funds) amounted to a deficit of $477,760. This deficit balance in unrestricted net assets for the Gas Fund is primarily due to the Gas Fund heavily invested in capital assets for which it has not yet recovered the cost of capital invested. The natural gas lines are currently operational and the Gas Fund expects to eliminate this deficit balance through increased revenues from customers on future gas sales, including the Light & Power fund. Total increase(decrease) in net assets for the Light and Power Fund, Gas Fund, and the non -major enterprise funds was $7,027,023, (S444,000), and $338,947, respectively. Other factors concerning the finances of these funds have already been addressed in the discussion of the City's business -type activities. Governmental Funds Budgetary Highlights For the current year, the City's original and final budget for general fund expenditures was $46,456,421. The General Fund's total variance between the final budgeted amount and actual amount was S6,530,042. The key reason for this variance was excess expenditures over appropriations for capital outlay expenditures of $7,274,739 incurred by the City in its current industrial development programs. The excess expenditures over appropriations in the general government were S6,338,061. However, these excess expenditures over appropriations were offset by the under expenditures of $3,615,057 in public safety and $3,205,155 in public works. Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business -type activities as of June 30, 2006, amounts to $405,636,628 (net of accumulated depreciation). This investment in capital assets includes land, buildings, utilities system improvements, machinery and equipment, and infrastructure such as roads. The total increase in the City's investment in capital assets for the current fiscal year was $48,884,943 (net of depreciation). Major capital asset events do ring the current fiscal year included the following: Construction on the Malburg Generating Station and City's electric system; construction in progress costs for the fiscal year were $17,836,594. On October 17, 2005, the Malburg Generating Station _10- became operational and its entire construction cost of '$208,352,126 was reclassified from construction in progress to a utility plant in service. Construction in progress costs related to a variety of constniction projects were $36,339,669. In the current year, the Redevelopment Agency Fund has elected to reclassify $8,401,673 of its land to land held for resale. As of June 30, 2006, there were no significant construction commitments outstanding. Additional inforination on the City's capital assets can be found in Note 5 on pages 35-37 of this report. Outstanding Debt During the fiscal year 2006, the City issued a total of S480,265,600 in long-term obligations consisting of the following: $49,420,000 Redevelopment Agency of the City of Vernon Industrial Redevelopment Project Tax Allocation Bonds, 2005 Series $200,000,000 Vernon Gas Project Variable Rate Revenue Bonds, 2006 Series A $115,440,000 Vernon Gas Project Variable Rate Revenue Bonds, 2006 Series B, and St 15,405,000 Vernon Gas Project Variable Rate Revenue Bonds, 2006 Series C The Industrial Redevelopment Project Tax Allocation Bonds, Series 2005 were issued to provide funds to (i) finance various redevelopment projects in or benefiting the Agency's Industrial Redevelopment Project area, (ii) fund the reserve requirement for the Series 2005 Bonds, and (iii) pay the costs of issuance related to (he Series 2005 Bonds. On April 1, 2006, the City and the RDA created the Vernon Natural Gas Financing Authority (Authority) pursuant to the Joint Powers Agreement, for the express purpose of undertaking projects and programs that promote economic development within the City. Such projects and programs include assisting the City in procuring natural gas for use as fuel for electric generating units that are part of the City's Electric System, which is accounted for in (he City's Light and Power fund. During the year ended June 30i 2006, the Authority issued $430,845,000 in variable rate bonds and subsequently purchased natural gas in accordance with the Natural Gas Agreement between the Authority and the City. As a result of this financing arrangement, the debt and related asset (prepaid natural gas) associated with the Authority have been blended with the City's Light and Power fund for financial reporting purposes. Bonds outstanding at June 30, 2006 and issued in the prior year consist of $90,150,000, 2004 Series A, $83,575,000, 2004 Series B, S39,875,000, 2004 Series C, and $61,825,000, 2004 Series D, Electric System Revenue Bonds. The 2004 Bonds were issued to provide funds (i) to refund $162,610,000 of outstanding Electric System Revenue Bonds of the City; (ii) to finance the costs of improvements to the City's substation and distribution facilities and certain costs of completion of the City's Malburg Generating Station; (iii) to finance the reimbursement to the City of certain costs incurred in connection with the City's electric system facilities-, (iv) to fund a deposit to the Debt Service Reserve Fund; and (v) to pay the costs of issuance of the 2004 Bonds. As of June 30, 2006, all bonds issued by the City, Vernon Redevelopment Agency, and Authority had a rating of "Aaa" by Moody's. Additional information on the City's long-term debt can be found in Notes 6 and 7 on pages 38-50 of this report. Economic Factorsand Next Year's Budgets and Rates These factors were considered in preparing the City's budget for the 2007 fiscal year. • The unemployment rate for the City and adjacent communities is currently 2.2%. This compares favorably to the state's average unerriployment rate of 4.9% and the national average rate of 4.6%. • The occupancy rate of the City's central business district has remained at 98% for the current year. 0 Inflationary trends in the region compare favorably to national indices. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report of requests for additional financial information should be addressed to the Office of the Finance Director, 4305 Santa Fe Avenue, Vernon, California 90058. - 12- CITV OF VERNON, CALIFORNIA Staiement of Nei Assets June 30, 2006 Govet-rimc.t.1 Bu5iness-typc Activities Activities rolat ASSETS: Cash and invesimenis S 55.722,859 5 50,806,818 S 106.529.677 Receivables, net ofallowances of$ 1,400,000 4X7,781 13,852,228 f8.170,OD9 Legal settlement receivable 7,400,000 7,400,000 Accrued unbilled rc�crnie 7,737.303 7.737,303 Acc.cd interest receivable 226,988 1,431.950 1,659.938 Inventories 773,684 81.480 955,164 Internal balances (21,212,306) 21,212,306 Prepaid natural gas 423,374.475 423,374.475 Deposits and prepaid v.penses 612,gi5 411.69% 1.144.513 Restricled cash and invesimenis 40,015,669 47.350,737 87,566,406 Note receivable 4.113.931 4,113,951 Bond issuance costs 2,451.418 13,836.974 16,298,392 Other assets - 16,777,982 16,777,982 Land held for .salc 8,401,673 8,401,673 Capital asiiets: Nondepreciable 65,422.758 16,743,478 82,166,236 Depreciable, net 23,920,279 299,550,113 323.470,392 Total assets 180.713,619 924,941.493 1,105,655.111 LIABILITIES: Accounts payable 6.696.563 14,048,501 20,745.064 Acmcd wages and benefits 1,397,177 2a3,574 1.680,751 Customer deposits and runds held fior others 261,993 776,754 1,038.747 Unearned revenue 932.8" - 932,944 Long-term liabilities; Due within one year. Legal settlement payable 9,666,667 9.666.667 Bonds payable, net 44,345 3,567,547 3.61),892 Bond interest 663,800 995,445 1,649,245 Claims Payable 2.452,959 - 2.452,85B Cornpensated aWrices 928.525 200,168 1,128,693 Due in more than one year: .Legal sellicinimf payable 5,333,333 5,333,333 Bonds payable, rmi 50.277.701 693,422,746 743,700,447 Claim payable 4,905,715 - 4,905,715 Total Ii.biliIiis 68.561,521 728,284,735 796,846.256 NET ASSETS: l-,.,ied in -iiiial net of,t:Wed debt 81,488,07H 124.086.207 2G5,574,285 Restricted reir: Grants 312.202 - 312,202 Allerawivecnergy 16,532.856 16,532,856 Debt service 2,984.715 13.742.839 16,727.554 Unrestricted 27,367,102 42,294,856 69.661.959 Total net assets S 112,132.097 S 196,656,758 $ 308,808.055 See accompainyin$ notes to the basic financial sttements. - 13- CITY OF VERNON, CALIFORNIA Statement of Activities For the Fiscal Year Ended June 30, 2006 Net (Expenses) Revenues and Prograns Revenues 0..gc it) Nei Assets Operating Business - Charges for Giants ..d Goverrimcnial I)T. Up-ses Scrvic� Contributions Activities AOi0ics Total FUNCTION/PROGRAM ACTIVITIES: Governmental activities: General government S 19.944.193 S 2.450,172 S 290,414 S (17.203.607) S S (1-1,203.607) Nblic safety 19,613,951 5.008,894 - (14,605,067) (14.605,067) Public works 5,542.660 2.064,894 (3,477.766) (3,477,766) He.[.h s—im 1,397.083 1,326,143 (70,940) (70.940) Interest on long-icrin debt 1.724.513 (1,724.513) (1.724,513) Total go�ernnncm.t wivili� 481221400 1oi85ol()q3 '290,414 (37.081.8931 (37,081,893) 13-loess-type exivi.ics: Light and power 149,424.972 1.12.565.018 (16.859.954) (16.959.954) Gas 36,953.697 36,309,697 (444,000) (444,000) Other .6,010,948 6,536.832 525,894 525,884 Tom[ b-ine—,yp. activities 192.389.617 175.611,547 (16,778,070) (16,779.070) Total S 240,61ZG17 S 196,461,640 S 290,414 (37.081,893) (16,778,070) (53,859,963) General Revenues: Property 1.�es 7.270,393 7.270.383 P3rccitarxes 7.001.828 7.001.828 Franchise taxes 1,479,619 1,479.619 Business liccn� taxes 1.159.618 1,159,618 Othur I iccnsc tamm 109,573 - 109.573 Invcsinnern inconac 2.631,641 4,128.341 6,759,982 Nei decrease in fair value ofinvestritents (7,163) (1.873,905) (1,881.068) Star. -.1,ib.1ion - sales and me ta,ses 4.685,752 4.685,752 Gain on Ic ofp.perty 43.985 43,985 01he—ve-es 406.334 - 406,334 Transfers (21,445,604) 21.445,60 Turn] general revenues and transf.. 3.335.966 23,700.040 27,036,006 Change in net assels (33.745.927) 6..921,970 (26.823,957) NET ASSETS. BEGINNING OF Y EAR 145.898.024 199,734.788 335,632.812 NET ASSETS. END OF YEAR S 117,152,097 S I W656,758 S 309.908.855 Sm auomp=ying notes to thu basic financial s(atements. .M. CITY OF VERNON, CALIFOPUNIA Balance Sheet Governmental Funds June 30, 2006 Redevelopment Other Total General Agency Governmental Governmental Fund Fund Funds Funds ASSETS: Cash and investments $ 27,136,100 S 521,925 S 17,605,525 $ 45,263,550 Receivables 1,424,205 889,126 2,004,450 4,317,781 Accrued interest receivable 9,129 217,859 - 226,988 Advances to other funds 4,975,646 4,975,646 Inventories 713,694 773,684 Restricted cash and in vestments 360,104 39,655,565 40,015,669 Other assets 115,815 SS7,000 672,815 Land held for resale - 8,401,673 8,401,673 Total assets S 34,794,683 S 50,243,148 S 19,609,975 S 104,647,806 LIABILITIES AND FUND BALANCES: Liabilities: Accounts payable 4,715,489 $ 1,071,149 S 836,151 6,622,789 Accrued wages and benefits 1,391,554 268 5.355 1,397,177 Advances from other funds - 16,860 19,739,433 19,756,293 Due to other funds 6,314,779 8,665 34,100 6,357,544 Customer deposits and funds held for others 261,993 - - 261,993 Deferred revenue 1,150,106 8,401,673 958,995 10,510,774 Total liabilities 13,833,921 9,499,615 21,574 034 44,906,570 Fund balances: Reserved for: Federal forfeiture funds 312,202 312,202 Advances to other funds 4,975,646 4,975,646 Inventories 773,684 - - 773,684 Encumbrances 812,531 806,742 192,729 1,812,002 Employee loans receivable 67,314 - - 67,314 Debt service 2.984,715 2,984,715 Redevelopme"I projects 36,607,050 36,007.050 Unreserved 14,019,385 946,026 - 14,965,411 Unreserved, reported in nonmajor: Special revenue funds - - 15,529,565 15,528,565 Capital projects funds - - (17,685,353) (17,685,353) Total fund balances 20,960,762 40,744,533 (1,964,05()) 59,741,236 Total liabilities and fund balances S 34,794,683 s 50.243,149 19,609,975 S 104,647,906 See accompanying notes to the basic financial slatcatents. V, CITY OF VERNON, CALIFORNIA Reconciliation ofthe Governmental Funds Balance Sheet to Statement of Net Assets - Govenrimental Activities ]one 30, 2006 Fund balances - total governmental funds (page 15) Amounts reported for govemmental activities in the statement ofnet assets are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds. Because the focus ofgovemmenial funds is on short-term Financing, some assets will not be available to pay for current period expenditures. Those assets are offset by deferred revenue in the governmental funds. Other assets used in governmental activities do not consume current financial resources and therefore are not reported in the govemmental fund. Unamortized bond issuance costs Compensated absences are not due and payable in the current period and therefore, are not reported in the funds, Internal service funds are used by management to charge the costs of employee benefits for health insurance. workers compensation, etc., to individual funds. The assets and liabilities of these funds aye included in governmental activities in the statement ofnet assets 59,741,236 89.343,037 8.401,673 2,451,418 (928,525) 2,952.847 Long-term liabifit�es are not due and payable in the current period and therefore are not reported in the governmental fund. Bonds payable (49,420,000) Bond interest payable (663,800) Unamortized bond premium (902,046) The City recognized uncollected property taxes that were carried but unavailable as ofJune 30, 2006. 1,176,257 Net assets of governmenial activities (page 13) 112,152,097 See accompanying notes to the basic financial statements. - 16- CITY OF VERNON, CALIFORNIA Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Forthe Fiscal Year Ended June 30, 2006 Redevelopment Other Total General Agency Governmental Governmental Fund Fund Funds Funds REVENUES: Taxes $ 8,943,668 $ 6,469,211 S 6,509,334 S 21,922,213 Spccial.isscssmcnts 736,221 - 736,221 Licenses and permits 1,161,188 518,260 1,619,449 Firics, forfeitures and penalties 188,988 - - 188,988 Investment income 1,725,347 906,666 228 2,631,641 Net (decrease) increase in fair value ofinvesiments (24,546) 17,383 - (7,163) Intergovernmental revenues 290,414 290,414 Charges for services to enterprise funds 8,674,077 - - 8,674,077 Other revenues 697,254 119,780 383,878 1,199,912 Total revenues 22,392,611 7,511,440 7,411,700 37,3 f5,751 EXPENDITURES: General government 15,754,912 556,609 197,604 16,509,125 Public safety 18,657,690 - 11,585 18,729.275 Public works 5,010,187 282,475 5,292,662 Health services 1,246,963 - 87,106 1,334,069 Capital outlay 11,504.180 3,595,389 13,406,141 28,505,710 Interest on advances 213.603 - 213,603 I merest on bonds 878,522 979,522 Bond issuance cost - 2,536,782 - 2,536,782 Total expenditures 52,173,932 7,790,905 14,044,911 73,999,749 Deficiency of revenues under expenditures (29,781,321) (269,465) (6,633,2) 1) (36,683,997) Other financing sources (uses): Sale of land - 3,267,400 - 3,267,4()0 Sa Ic of property 43,985 - 43,985 Proceeds from long-term debt - 49,420,000 49,420,000 Bond premium - 933,458 - 933,458 Transrers in 2,975,870 - 624,824 3,600,694 Trdnsfcrs out (24,511,474) (624,824) - (25,136,298) Total other Financing sources (uses) (21,491,619) 52,996,034 6F4,824 32,129,239 NET CHANGE IN FUND BALANCES (51,272,940) 52,726,569 (6,008,387) (4,554,758) FUND BALANCES, BEGINNING OF YEAR 72,233,702 (11,982,036) 4,044,328 64,295,994 FUND BALANCES, END OF YEAR S 20,960,762 S 40.744,533 S (1,964.059) S 59,741,236 See accompanying notes to the basic financial statements. 17- El CITY OF VERNON, CALIFORNIA Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities For the Fiscal Year Ended June 30, 2006 Net change in fund balances - total governmental funds (page 17) (4,554,758) Amounts reported for governmental activities in the statement of activities arc different because: Expenditures for capital assets 28,505,710 Less current year depreciation (2,092,732) 26,412,978 Change in long-term compensated absences 16,243 The effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to decrease net assets. Sale ofand loss on capital assets (3,282,440) Internal service funds are used by management to charge the costs ofeertain activities to individual funds. The net loss of the internal service funds is reported with governmental act ivities.. (2,349,622) .Other assets used in governmental activities do not consume current financial resources and therefore, are not reported in the governmental fund. Unamortized bond issuance costs 2,451,418 Long-term debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-tenn liabilities in the statement ofnet assets. Accrued interest expense on bond payable (663,800) Bond issuance (49,420,000) Unamortized bond premium (902,046) Revenue timing differences result in less revenue in government -wide statements. (1,453,900) Change in net assets ofgovemmental activities (page 14) S (33,74L927 See accompanying notes to the basic financial statements. _18- CITY OF VERNON, CALIFORNIA Statement ofFund Nei Assets (Deficit) Proprietary Funds June 30, 20D6 Business -type Grivemincratal Activities Activities - Eolcrprise Funds internal Light and Power Other Sciwicc Fund Gas Fund Enterprise Funds Totals Funds ASSETS: Current assets: Cash and investments 43,415,460 S 829.395 6,561,963 S 50.806,818 S 10,459,309 Receivable. net ofallowanccs ofSI,400.000 13,775,644 - 76.584 13,852,228 - Legal settlement rc"ivable 7.400.000 7,400,ODO Accrued unbillcd revenue 7,318,063 419,240 7,737,303 Accrued interest fmcivabic 1,4il,950 1,431,950 Bond issuance costs 232,403 232,403 Due from other funds 6,760,149 6,760,148 Inventories 81,480 81,480 Prepaid natural gris 423,374.475 423,374,475 Deposits and prepaid expenses 471,698 471,699 Restricted cash and investments 31,017,881 31,017,881 Other assets 16,777,982 16,i77,982 Total cumcni assets 552,057,184 829,395 7.057,787 559,944,366 10,459,309 Noncurrent assets: Restricted cash and investments 16,532,856 16.532,856 A&anccs to other funds 45.307,418 45.307,418 Note receivable 4.113,951 4,113,95 1 Bond isswrice coils 13,604.571 13.604,571 Capitol nssels: Nondcpreciablc 13,580,995 - 3,162,493 16,743,478 Depreciable. net 273,342.132 21,200,011 5,007,970 299,550,113 Total noncti"crit assets 366,481.923 21,200,01'1 8,170.453 395,852,387 Total assets 918,539.107 22,029,406 15.228,240 955.796,753 10,459,309 LIABILITIES: Accounts payable 9,3",599 3,322,164 1,381,738 )4.048,501 73,774 Accrued wages and benefits 214,296 5,970 63309 283.574 Customer deposits 372.276 404,478 776,754 - Due to other funds - 328,489 328.489 74,115 Long-lema liabilities: , Due within onc year Claims payable 2.452.858 Legal settlement payable 9,666,667 9.666,667 - Bonds payable, net 3,567,547 3.567,547 Bond interest 985,445 985,445 Compensated absences 142.922_ 1,569 55,677 200,168 Tot -at current liabilities 24,293,752 3.329,703 2,233,690 29.857,143 2,600.747 Due in more than one year: Claims payable - - 4,905,715 Advances from other funds - 25,224.914 5.301.857 30,526.771 - Legal settlement payable 5,333,333 5,333,333 Bonds payable. net 693,422,746 - 693.422,746 - Tolal noncufrcni liabilities 698,756,079 25,224,914 5,301,851 729,282,850 4.905.715 Total liabilities 723,049.831 28.554.617 7.535.547 759,139,995 7,506,462 NET ASSETS: Invested in capital itiscls. net ofrclatcd debt 95,450,191 21,200,011 8,170,453 124,820,655 Restricted for alternative energy 16.532,856 - - 16,532,856 Restricted for debt service 13,742.839 13.742,939 - Unrestricted (deficit) 69,763,390 _(27,7-75.222) _(477,760) 41,560,408 2,952.947 Total w assets (deficit) $ 195,489,27i S 7,692,693 S 196,656.758 S 2.952,847 5�. cr—p.ryin8 rirrt,� 1. the b.,. financial vau,m.is. .19. R] CITY OF VERNON. CALIFORNIA Statement ofRevenues, Expenses and Changes in Fund Net Assets (Deficit) Propfietary Funds For the Fiscal Year Ended June 30. 2006 Busiom-type Governmental Activities Activities - Enterprise Funds internal Light and Power Other Service Fund Gas Fund Enterprise Funds Totals Funds OPERATING REVENUES: Charges for services S 132,565,018 $ 36,509,697 S 6,536,832 S 175,611,547 S 10.262,058 total operating revenues 132,565.018 36,509,697 6,536,932 175,611,547 10,262,058 OPERATING EXPENSES: Cost ofsaics 127,551,769 36,671,275 5.649,885 169,872,929 Depreciation and amortization 7.436,297 282,422 361,063 8,079,782 Claims expense - - - - 3,157,196 Employee benefits - - - 9,544,484 Total operating expenses 134.988,066 36.953.697 6.010,948 177,952,711 12,701,680 Operating (loss) income (2,423,048) (444,000) 525.884 (2,341,164) (2.439.622) NONOPER,ATING REVENUE (EXPENSES): Investment income 4.128,341 4.128,341 Net decrease in fair v alue of investments (1,873,905) (1,873,905) Bond interest expense (9.179,326) (9, 179,326) Legal settlements, net (5,257,580) (5,257,580) Total nonoperating expenses (12.182,470) (12.182,470) Income Were transfers (14.605,518) (444,000) 525.884 (14,523,634) (2.439.622) Transfers in 24,421,474 - 24,421.474 90,000 Transfers out (2,788,933) (186,937) (2,975,870) Change in net assets 7,027,023 (444,000) 338.947 6,921,970 (2,349,622) Net assets (deficit), beginning of the year 188,462,253 (6,081.211) 7.353,746 189,734,788 5.302,469 Net Rsscls (deficit). end ofthe year 195,489.276 S (6,525,211) S 7.692,693 S t96,656,759 S 2,952,847 &v uccompanying noics to the basic financial stoicirients. -20- N CITV OF VERNON Slal-ent ofC�sh Flo- Propm.,y F-ds F.� ih� Fi..l Y... E.&d)- 30, 2006 C--�l Aai�itim - E-Tisc Vunds_ f...w Li& & Po- ofh� S- Fund G� Fund Etuao,� F..& T.,.l F-ft C.h fl- C.,h -mW I.. f-ft s 128.032.IZI s 36.509.697 S 6.615.562 S 171.157�390 5 MOMS 114DA83.114) (31.725.691) (4J74.531) (178.ZAI.93A) C3sh Rid 10 City 9�1 fund rof �ica (11.911.1") 1460.665) (12.171.859) c.h Rid F., P"P." -1 t. 1423.174.47j) - (423,374.475) Cuh Rid fm cWn, �,nd o,"Wm bwfn (IO.W.924) N. .,b P-idm by 1-d i.) �lo, �wni. (88.066) Cuh nI- ftoo -*wl fimmi,l wi"- T-f� -ci-d (Rid) 2L632,541 (186.917) 21.445.M)4 90.1m ?,.-h f.. 2006 n-h 410.915.OW - - 43kB45.0M A&- I.. W �tl. flld, 0.781.50.) 459,966 (135.165) (�.456.7031 twmm.w- (61570.536) (6.970.536) C,lWi-f -wbk 237,N5 237.0.5 N. .,h p-adId by piW x1tviiia "0,%2.50 159.966 (322,10Z) U1,100.410 90.0D0 Cz,h no- ftm capkil � idnW 1-in, �Mtia: itcpxy� o(1004 bonft 0.800AM Rmmoro) U.M i.- Rid (9.711311) (8.213.377) A'4.4ili� � --i..fc.Ol - 131.233,882) (2.414,377) (1.360.933) (42,01 y1g) N. .,b .� in �iW .4 ..W fi.j -new. (jO.149r265) (2.414,577) 11.360.9.13Y (14.424.775) Cuh nn- ftnI 1-mg xd,hi- N�- �.d .1. If i.-� (66.124.268) (69.124.2M) ln,�- i-- 017m913 W. -h w . i.-fing 03.276.353) (63.176.353) Na i- M-) in enh w4 mh cqtdvaIM3 (120.0DOL134) §29J" 97.329 119.073.610? 1.134 C� " � bginniq I r y_ 140.1 ".903 6P�A34 146rWm3j7 10.459.175 C� " � Iqd-k� " fya, 1 10,99,19 S IN-191 s 27.5ft'27 3 10.41%309 R"Incili'li" of"Mlin;- w m �" by (..d Iai�i�m 0�.6,4 i-- (Wb) (2.423.048) S 0-Am s 523.814 3 (2.341.1641 5 (2,439.622) Ad,.- . . nd -h �lm D,Pmd.i- � ?.436.297 212.-22 161.063 6.019,782 P�isim F,, d,,IA f1b) [A00.m. 1..Do.� Chan� in Malinj W likifilim. DwWc (c) R-mbj. (".626) (3.9n.017) 1--rk. 179.813) (78.913, P,,�id .9- (272,251) (272.251) PlcpM N�� Gm J433.174.475) (423,374.47�) 02.233.1al 1-fd-) in, A-.- py*k (6327.2791 l."J.899 156.971 114.8601 cl,i� "ynlk 2.365.616 A-W ..-.M b..(,. (308.901) (16.305) 10.2" 1313.0M D- f.) finnn ah. f..d, (6.760.14A) 647.420 (6.112.7291 C-d�m (599.307) 123356 (-.151) - C..�-W b- 11.776 .7.776 O� V.,.b� - 0 t90496 ------------- No �h pmvided by (uWd i,j 0�lis �widm S (447 4A7 Z62) S 2.794006 1 780164 3 (442.972.8911 S (""66) -il i,iw f.A nd 'uh S- If No A� c- nd -.- s s h2q�qs 5 6,561.963 S 50.906.Ull S 10.459.309 C.- -ickd ch .4 i.--. 31,017,981 - 31.017.881 N.-.- -vi.. -h nd i.-- 16.532;936 1645RA36 T..l W.�.197 s 529-19S 3 6.361A.1 s 1M.351.553 5 ID..59.309 J_,4.166.03? T-J -h nd,Wb I,W�� 20, mw s 829.1" 5 1141.111 1 ".IW IN 1 10411-101 Nmcxh C*13L 1,�Wmt &W Fin-ing A�mlia .�..lon fc.lw - in - s 122.845 5 1 s .72.A45 s D-.. in N, �.I. fi--m 11.311.619) ".391.6m Sft xu-q-nyi,* ma w �* b.ic . .21. CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements June 30, 2006 NOTE I —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Vernon, Califomia (City) have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing goverrimental accounting and financial reporting principles. The more significant ofthe City's accounting policies are described below. Reporting Entity The City was incorporated on September 16, 1905 as a General Law City. Effective July 1, 1988, the City became a Charter City. The City operates under a Counci(-City Administrator form of government. As required by generally accepted accounting principles, the accompanying basic financial statements present the City of Vernon (primary government) and its component units,,entities for which the primary government is considered to be financially accountable. In accordance with GASB Statement No. 14, the City's component units are considered blended component units- Although legally separate entities, they are, in substance, part of the City's operations, and therefore, data from these units are combined with data ofthe primary government. Blended Component Units Vennon Redevelopment Agency (RDAI. The governing body of the RDA is comprised of members of the City Council and the Mayor. Among its duties, it approves the RDA's budget and appoints the management. Separately issued financial statements for the RDA may be obtained through the City of Verrion, 4305 Santa Fe Avenue, Vernon, California, 90058. Vernon Natural Gas Financine Authority On Apfil 1. 2006, the City and the RDA created the Vernon Natural Gas Financing Authofity (Authority) pursuant to (he Joint Powers Agreement, for the express purpose of.underiaking projects and programs that promote economic development within the City. Such projects and programs include assisting the City in procuring natural gas for use as fuel for electric generating units that are part of the City's Electric System, which is accounted for in the City's Light and Power fund. During the year ended June 30, 2006, the Authority issued $430,845,000 in variable rate bonds and subsequently purchased natural gas in accordance with the Natural Gas Agreement between the Authority and the City. As a result ofthis financing arrangement, the debt and related asset (prepaid natural gas) associated with (he Authority have been blended with the City's Light and Power fund for financial reporting purposes. Basis of Presentation Government -wide Financial Statements The statement of net assets and statement of activities display information about the primary govemment (the City) and its component units. These statements include the financial activities of the overall government- It is the City's policy to make eliminations to minimize the double counting'ofiniemal activities, except for services rendered by governmental activities to business -type activities as well as charges from the Gas Fund to the Light & Power Fund. These statements distinguish between the governmental and busine�s-iype activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reporled separately from business-lype activities, which rely to a significant extent on fees charged to exlemal parties. 22- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis ofPresentation (Continued) The statement of activities presents a comparison between direct expenses and program revenues for each,segment of the business -type activities of the City and for each function of the City's governmental activities. , Direct expenses arc those that are specifically associated with a program or function-, and therefore, are clearly identifiable to a particular function. Expenses by function have been adjusted for. any internal service profit/loss existing at fiscal year-end. Prograin revenues include (1) charges paid by the recipients of goods or services offered by the programs and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements The fund financial statements provide information about the City's funds and blended component units. Separate statements for each fund category — governmental andproprielary — are presented. The emphasis of fund Financial statements is on major governmental and enterprise funds, each displayed in a.separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajoi funds. Proprietary funds distinguish operating revenues and expenses from nonoperaling items. Proprietary fund operating revenues, such ascharges for services, result from exchange transactions associated with the principal activity of the find. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. Operating expenses include -the cost of sales and services, administrative expenses and depreciation on capital assets. All expenses not meeting this definition are reported as nonoperating expenses. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as general government, public safety, and public works. The Vernon Redevelopment Agency was activated September 16, 1986,,by.action of the Vernon City Council pursuant to the Community Redevelopment Law of California. The Agency has the broad authority to acquire, rehabilitate, develop, administer, and sell or lease property. Additionally, the Agency has the right of eminent domain to facilitate. acquisition of property. The principal objectives of the Agency are to improve the commercial envi.romnent, provide new public improvements, strengthen the City of Vernon's (City) economic base, generate added employment opporiunities, and expand the City's industrial base. The City reports the following major enterprise funds: • The Light and Power Fund accounts for the maintenance and operations of the City's electric utility plant. Revenue for this fund is primarily from charges for services. • The Gas Fund accounts for maintenance and operations of the Cily's.gas utility system. Revenue for this fund is primarily from charges for services. Natural gas is provided primarily to the Light & Power Fund at wholesale cost. In addition, the Gas'Fund provides natural gas to several outside companies. Additionally, the City reports the following fund types: The City's Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restficted to expenditures for specific purposes. -23 - El CITY OFNERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis ol'Presenration (Continued) • The City's Capital Projects Funds are used to account for Financial resources designated for the acquisition or construction of major capital facilities other than those financed by proprietary fund types. • The City's Iniemal Service Funds are specifically designed to account for goods and services that are provided on a cost -reimbursement basis. That is, the goal of an internal service fund should be to measure the full cost of providing goods and services for the purpose of fully recovering that cost through fees or charges. Some examples of the City's services accounted for in the internal service funds are self-insurance activities for worker's compensation, general liability, group medical and dental, and vehicle replacement. The Internal Service Funds are presented in summary form as part of the proprietary fund financial statements. In the govcmment-wide financial statements, the changes in net assets at the end of the fiscal year, as presented in [he statements of activities, were allocated to the user functions of the governmental activities, to reflect the entire activity for the year, Since the predominant users of the internal services are the City's governmental activities, the asset and liability balances of the Internal Service Funds are consolidated into the governmental activities column at the government -wide level. The govemment-wide and proprietary fund financial. statements are reported using the economic resources measurement focus and the accrual basis or accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales taxes, grants, enlitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the, taxes are levied. Revenues from sales taxes are recognized when the underlying transactions take place. Revenues from grants, entitlements and donations are recognized in the fiscal year in which all eligible requirements have been satisfied. Governmental fund type financial statements arc reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues and other governmental fund type financial resources are recognized when they become susceptible to accrual — that is, when they become both ,measurable and available. Revenues are considered to be available when they am collectible within the current period or soon enough thereafter to pay liabilities of 1he current period. Property, sales, and other taxes are considered available and are accrued when received within sixty days after fiscal year-end. Additionally, all other revenue sources are considered available and are accrued when received within 60 days of year-end. Expenditures generally arc recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expendi.tures related to compensated absences and claims andjudgments, are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental fund statements. For the govcmment-wide financial statements and proprietary fund financial statements, the City has elected under GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1999 unless those pronouncements conflict with or contradict GASB pronouncements. The City has elected not to adopt FASB pronouncements issued after November 30, 1989 for its govemment-wide and enterprise fund financial statements. Because the governmental Fund financial statements are presented on a different measurement focus and basis of accounting than the govemment-wide financial statements for governmental activities, reconciliations are presented which briefly explain the adjustments necessary to reconcile the fund financial statements to the govemmental-wide statements. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources, as they are needed. -24- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE I —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Cash Denosits and Investinews The City follows the practice of pooling cash and investments of all funds to maximize returns for all funds, except for funds held by trustee or fiscal agents. For purposes of the statement ofcash flows, the City considers all highly liquid investments (including restricted cash and investments) with an original maturity of three months or less when purchased to be cash equivalents. Investment transactions are recorded on the trade date. Investments in nonparticipating interest -earning investment contracts are reported at cost, and all other investments are reported at fair value. Fair value is defined as the amount that the City could reasonably expect to receive for an investment in a current sale between a willing buyer and a seller and is generally measured by quoted market prices. Intertand ReceivablexlPavables Short-term interfund receivables and payables are classified as "due from other funds" and "due to other funds" respectively on the balance sheet/statement of fund net assets. Long-term interfund receivables and payables are classified as "advances (o/from other funds," respectively, on the balance shect/statement of fund net assets. Inventories Inventories consist of consumable supplies and fuel stock, which are stated, at cost on a first -in, first -out basis. The cost of inventories is recorded as an expendilures/expense when the items are used. Cap�tal Assets Capital assets (including infrastructure) art recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated fair market value on the date contributed. Capital assets include public domain (infrastructure) general capital assets consisting of certain :improvements including roads and bridges, sidewalks, curbs and gutters, and traffic light system. The capitalization threshold for all capital assets is $5,000. Capital assets used in operations are depreciated usingthc straight-line method over their estimated useful lives in the� government -wide statements and proprietary funds. The estimated useful lives arc as follows Infrastructure 10 to 50 years Utility plant and buildings 25 to 50 years Improvements 10 to 20 years Machinery and equipment 3 to 35 years Maintenance and rcpairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the changes in financial position. For taxmexempt securities, interest income and expense associated with construction of capital assets is capitalized during the construction phase up until the capital asset is substantially complete and ready for its intended use. -25- R] CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Compensated A bsences Accumulated vacation is accrued when incurred in the govemment-wide and proprietary fund financial statements. A liability for accrued vacation is recorded in the governmental funds only to the extent that such amounts have matured (i.e., as a result of employee resignations and retirements). Upon termination of employment, the City will pay the employee all accumulated vacation leave at IGO% of the employee's base hourly rate. Deferred Revenue Deferred revenue arises when a potential revenue transaction does not mect the "available" criteria for recognition in the current period. Deferred revenue also arises when resources are received before the City has a legal claim to them, as when grant monies are received in advance of incurring qualified expenditures. La"g-ferm Obligations Certain of the City's governmental fund obligations not currently due and payable at year-end are reported in the govemment-wide statement of net assets. Long-term debt and other obligations financed by proprietary funds are reported as liabilities in the appropriate proprietary fund and government -wide sta(emcnt of net assets. Bond issuance costs, discounts and premiums and deferred amounts on refunding are amortized over the life of the bonds using the straight-line method. Net Assets The government -wide financial statements and proprietary fund financial statements utilize a net assets presentation Net assets are categorized as invested in capital assets (net ofrelated debt), restricted and unrestricted. El Invested In Capital Assets, Net of Related Debt — This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category. 0 Restricted Net Assets — This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. 0 Unres(ricied Net Assets — This category represents net assets of the City, not restricted for any project or other purpose. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not appropriable or legally restricted for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. Use of Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accord i ngly,,actual results could differ from those estimates. - 26- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property Taxes The County of Los Angeles (County) levies, collects and apportions property taxes for all taxing jurisdictions with the County. Property taxes are determined by applying approved rates to the properties' assessed values. The County remits property taxes applicable to the City less an administrative fee throughout the year. Article XIIIA of the State of California Constitution limits the property tax levy to support general government services of the various taxing jurisdictions to $ 1.00 per S 100 of assessed value. Taxes levied to service voter - approved debt prior to June 30, 1978 are excluded from this limitation. Secured property taxes are levied in two installments, November I and February 1. They become delinquent with penalties on December 10 and April 10, respectively. The lien date is January I of each year for secured and unsecured property taxes and the levy date occurs on the 4�h Monday of September of the tax year. Unsecured property taxes on the tax roll asofJuly 31 become delinqucntwith penalties on August 31. GASB Pronouncements In November 2003, GASH issued Statement No. 42, Accounting and Financial Reportingfor Impairment ofCapital Assets andfor Insurance Recoveries. This statement establishes accounting and financial reporting standards for impairment ofcapital assets. A capital asset is considered impaired when its service utility has declined significantly and unexpectedly. This statement also clarifies and establishes accounting requirements for insurance recoveries. This statement had no impact on the City. In December 2004, GASH issued Statement No. 46, Nei Assets Restricted Enabling Legislation - An amendment of GASB Statement No. 34. This Statement establishes and modifies requirements related to restrictions of net assets resulting from enabling legislation. It amends GASH Statement No. 34, Basic Financial Statemenis--and Management's Discussion and Analysis —for State and Local Governments, paragraph 34. GAS B Statement No. 34, Basic Financial Statements --and Management's Discussion and An�alysis—for State and Local Governments, requires that limitations on the use of net assets imposed by enabling legislation be reported as restricted net assets. This Statement clarifies that a legally enforceable enabling legislation restriction is one that a party external to a government —such as citizens, public interest groups. or the judiciary --can compel a government to honor. The Statement states that the legal enforceability ofan enabling legislation restriction should be reevaluated ifany ofthe resources raised by the enabling legislation are used for a purpose not specified by the enabling legislation or if a government has other cause for reconsideration. Although the determination that a particular restriction is not legally enforceable may cause a government to review the enforceability ofother restrictions, it should not necessarily lead a government to the same conclusion for all enabling legislation restrictions. This Statement also specifies the accounting and financial reporting requirements ifnew enabling legislation replaces existing enabling legislation or if legal enforceability is reevaluated. Finally, this Statement requires governments to disclose the portion of total net assets that is restricted by enabling legislation. This statement had no impact on the City. In June 2005, GASH issued Statement No. 47, Accounting for Terminalion Benefits. This Statement provides guidance to governmental employers - for measuring, recognizing, and reporting liabilities and expense/expenditures related to all termination benefits, including voluntary termination benefits, without limitation as to the period of time during which the benefits are offered, and involuntary termination benefits. This statement had no impact on the City. - 27 - N CITY OF VERNON, CALIFORNIA Notes to Basic financial Statements (Continued) June 30, 2006 NOTE 2 — CASH AND INVESTMENTS Cash and Inveslinents Cash and investments as ofJune 30, 2006 are classified in the accompanying financial statements as follows: Statement of net assets: Cash and investments 106,529,677 Restricted cash and investments 87,566,406 Total cash and investments 194,096,083 Cash and investments as of June 30, 2006 consist of the following: Cash on hand $ 1,300 Deposits with financial institutions 18,950,714 Investments 175,144,069 Total cash and investments S 194,096,083 The City's Investment Policy The City's Investment Policy sets forth the investment guidelines for. all funds of the City. The Investment Policy conforms to the California Government Code Section 53600 et. seq. The authority to manage the City's investment program is derived from the City Council. Pursuant to Section 53607 of the California Government.Code, the City Council annually appoints the City Treasurer and approves the City's investment policy. The Treasurer is authorized to delegate this authority.as deemed appropriate. No person may engage in investment transactions except as provided under the terms of the Investment Policy and the procedures established by the Treasurer. This Policy requires that the investments, be made with the prudent person standard, that is, when investing, reinvesting, purchasing, acquiring, exchanging selling or managing public funds, the trustee (Treasurer and staff) will act with care, skill, prudence, and diligence under the circumstances then prevailing, including but not limited to, the -general economic conditions and the anticipated needs of the City. The Investment Policy also requires that when following the investing actions cited above, that the primary objective of the trustee be to safeguard the principal, secondarily meet the liquidity needs of depositors, and then achieve a return on the funds under the trustee's control. Further, the intent of the Investment Policy is to minimize risk of loss on the City's held investments from: A. Credit risk B. Custodial credit risk C. Concentration of credit risk D. Interest rate risk -28- I CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 2 —CASH AND INVESTMENTS (CONTINUED) InvestmentsAurborized by the California Gove rnment Code and the City's Investment EaLl: The table below identifies the investment types that are authorized for the City by the Califonnia Goverriment Code and the City's Investment Policy. The table also identifies certain provisions of the California Govemment Code that address interest rate risk, credit risk. and concentration of credit risk. This table does not address investment of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's Investment Policy. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of *Portfolio in One Issuer Securities of the U.S. Government, or it agencies None None None Certain Asset -Backed Securities None None None Certificate of Deposit None 30% None Bankers Acceptances 180 days 40% 3 0% Commercial Paper 270 days 25% 101/0 Repurchase Agreements I year None None Reverse Repurchase Agreements 92 days 200/6 of base value None Medium -Term Notes None 3CP/o None Mutual Funds N/A 2 09/6 10% Money Market Mutual Funds N/A 20% 10% Mortgage Pass -Through Securities 5 years 20% None State Administered Pool Investment N/A None None 0 Excluding amounts held by bond trustee that are not subject to California Govemmcnt Code restrictions. Inveshnents Authorized bv DebtAereements Investments ofdebt proceeds held by bond trustee are governed by provisions ofthe debt agreements, rather than the general provisions of the California Government Code or the City's Investment Policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration ofcredit risk. Maximum Maximum 'Authorized Maximum Percentage Investment Investment Type Maturity of"Portfialio in One Issuer Securities of the U.S. Government, or it agencies None None None Cerlain Asset -Backed Securities None None None Certificate ofDcposit None None None Bankers Acceptances I year None None Commercial Paper None None None Money Market Mutual Funds N/A None None State Administered Pool Investment N/A None Notie Investment Contracts None None None -29- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 2 — CASHAND INVESTMENTS (CONTINUED) Disclosure Relatine to hrterest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair Value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash� flow and liquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio. The City has no specific limitations with respect to this metric. Weighted Average Maturity %of Investment Type Amount (in years) Total Commercial Paper S 5,397,750 0.01 3.08% Local Agency Investment Fund 529,038 0.42 0.30% United States Treasury Notes 9,818,750 3.16 5.61% Federal Farm Credit Bank 8,305,250 3.27 4.74% Federal "orne Loan Bank 33,111,250 1.68 18.91% Federal National Mortgage Association 26,757,180 0.89 15.28% Federal Home Loan Mortgage Corporation 40,837,533 1.09 23.32% Medium -Term Corporate Notes 18,007,669 0.36 10.28% Money Market Mutual Fund 19,848,921 - 11.33% Investment Contracts 12,530,728 27.77 7.15% S 175,144,069 3.06 100.00% -30- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 2 —CASH AND INVESTMENTS (CONTINUED) Disclosures RelagaLttoa.�Credil Ris�k Gener - ally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by the California Government Code, the City�s Investment Policy, or debt agreements, and the actual rating as of the year end for each investment type. Minimum Actual Fair % Required Credit Rating Value as of of Rating In custody of Treasurer: Cash on hand Nor Rated Not Rated 1,300 0.00% Deposits with financial institutions Not Rated Not Rated 18,950,714 9.76% Investments held by Treasurer: Commercial Paper P-I I A -I+ P-1 /A -I+ 5,397,750 2.78% Local Agency Investment Fund Not Rated Not Rated 529,038 0.27% Total in custody of Treasurer 24,878,902 12.82% In custody ofTrustee: Investments held by Trustee: United States Treasury Notes Not Rated Not Rated 9,818,750 5.06% Federal Farm Credit Bank Aaa / AAA Aaa / AAA 8,305,250 4.28% Federal Home Loan Bank Aaa / AAA Aaa / AAA 33,111,250 17.06% Federal National Mortgage Association Aaa / AAA Aaa I AAA 26,757,190 1379% Federal Home Loan Mortgage Corporation Aaa / AAA Aaa / AAA 40,837,533 21.04% Medium-TeTm Corporate Notes P-1 I A -I+ P-1 / A -I+ 18,007,669 9.28% Money Market Mutual Fund Aaa / AAA Aaa / AAA 19,848,921 10.23% Investment Contracts Not Rated Not Rated 12,530,728 6.46% Total in custody of Trustee 169�217,281 8�. 18% Total cash and investments held by Treasurer and Trustee S 194,096,083 100.00% -31- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 2 — CAS111 AND INVESTMENTS (CONTINUED) Concentration offredit Risk The City's Investment Policy places no limit on the amount the City may invest in any one issuer excluding a 10% limitation on commercial paper, mutual funds, and money market mutual funds. As ofJune 30, 2006, there was no investment in any one issuer that represented 10% or more of the City's total investments. As of June 30, 2006, the City's investments in any one issuer exceeding 5% were as follows: - Minimum Actual Fair % Required Credit Rating Value as of of Rating Moody's/S&P June30,2006. Total Federal Home Loan Bank Aaa / AAA Aaa / AAA S 33,111,250 17.06% Federal National Mortgage Association Aaa / AAA Aaa / AAA 26,757,180 13.79% Federal Home Loan Mortgage Corporation Aaa / AAA Aaa / AAA 40,837,533 21.04% Medium -Term Corporate Notes P-1 / A -I+ P-1 / A -I+ 18,007,669 9.28% Money Market Mutual Fund Aaa / AAA Aaa I AAA 19,848,921 10.23% investment Contracts Not Rated Not Rated 12,530,728 6.46% Ciistodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities thatare in the possession ofan outside party. The custodial credit risk for investments is the fisk that, in the event ofthe failure of the counlerparty to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Goverriment Code and the City's Investment Policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments. At year-end, the carrying amount of the City's deposits was $18,950,714 and the bank balance was $19,424,101. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in (ninsit. Of the bank. balance, $200,000 was covered by federal depository insurance and $19,224,101 was collateralized by the pledging financial institution as required by Section 53652 of the California Government Code. Under the California Government Code, a financial institution is required to secure deposits in excess of $ 100,000 made by state or local governmental units by pledging government securities held in the form of an undivided collateral pool. The market value of (he pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agcncim California law also allows financial institutions to secure City deposits by pledging first trust dced mortgage notes having a value of 1500/6 of the secured public deposits. Such collateral is held by the pledging financial institution's trust department or agent in the City's name. As of June 30,2006, the City had some risk in this area. Local Agency Investment Fund (LAIF) The Agency also maintained cash balances with the State of California Local Agency Investment Fund (LAIF) amounting to $529,038 at June 30, 2006. LAW is an external investment pool sponsored by the State ofcalifomia. These pooled funds approximate fair value. The administration of LAIF is provided by the California State Treasurer and regulatory oversight is provided by the Pooled Money Investment Board and the Local lnvcstmen( Advisory Board. The value of the pool shares in LAIF, which may be withdrawn, is determined on an amortized cost basis, which is different than the fair value of the Agency's position in the pool. -32- . CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 2 — CASH AND INVESTMENTS (CONTINUED) The total amount invested by all public -agencies in LAIF at June 30, 2006 was $16,392,041,241. LAIF is part of the State ofCalifomia Pooled Money Investment Account-(PMIA) whose balance was $63,616,592,927 at June 30, 2006. Of this amount, 2.567% was invested in structures notes and asset -backed securities. PMIA is not SEC - registered, but is required to invest according to California State Code. The average maturity of PMIA investments was 0.42 years as of.June 30, 2006. LAIF does not maintain a credit rating. NOTE 3 - RECEIVABLES The Cily's receivablt% at June 30, 2006 are as follows Redevelopment Other Total RLcelvables,- General Agency Governmental Governmental Governmental Activities: Fund Fund Funds Activities Accounts S 536,223 S - S 204,229 S 740,451 Taxes 820,668 889,126 1,800,222 3,510,016 Notes or loans 67,314 - 67,314 Total receivables s 1,424,205 S HUM S 2,004,450 S 4,317,781 Other Total Receivables - Light and Power Enterprise Business -type Business -type Activities: Fund Funds Activities Accounts S 15,175.644 S 76,584 S 15,252,228 Allowances (1,400,000) - (1,400,000) Total receivables S 13,775,644 S 76,584 S 13,852,229 The business -type activities allowances for doubtful accounts consists of$ 1,000,000 reserved for the California Power Exchange (See Note 13) and $400,000 reserved for all other doubtful accounts of Light and Power Fund's retail utility customers. NOTE 4 — INTERFUND TRANSACTIONS The following tables summarize the City's interfund balances and transactions at June 30, 2006: Due TolFrom Other Funds Receivable Fund Payable Fund Amount Light and Power Fund General Fund 6,314,779 Redevelopment Agency Fund 8,665 Other Governmental Funds. 34,100 Other Enterprise Funds 328.489 Internal Service Funds 74,115 6,760,148 The above balances represent in(erfund borrowings payable due within one year. -.33- R1 CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 4 — INTERFUND TRANSACTIONS (CONTINUED) Advances folfrom other funds Receivable Fund Payable Fund Amount General Fund Redevelopmcni Agency Fund 16,860 Other Governmental Funds 5,979 Other Enterprise Funds 4,952,807 $ 4,975,646_ Light and Power Fund Other Governmental Funds S 19.733,454 Gas Fund 25,224,914 Other Enterprise Funds .349,050 S 45,307,418 The above balances represent interfund borrowings payable beyond one year. These borrowings were for purchase of land and capital improvements. Transfers Transfers In 'rransfer Out Amount -- General Fund Light and Power Fund S 2,798,933 Other Enterprise Funds 186,937 s 2,975,870_ Light and Power Fund General fund S 24,421,474 5 24,421,474 Other Governmental Funds Redevelopment Agency Fund S 624,824 S 624,824 Internal Service Funds General Fund S 90,000 S 90.000 Transfers are used to move revenues from the fund that staWtc or budgct requires to collect them to the fund that Statute Or budget requires to expend them, or move revenues collected in certain enterprise funds to the General Fund to cover overhead costs provided by the General Fund and for the payment of in -lieu franchise taxes: For [fie current year, the Light and Power Fund and the Other Enterprise Funds transferred a total of $2.975,870 in in -lieu franchise taxes. For the current year, the General Fund transferred $24,421,474 to the Light and Power Fund. The main reason for this transfer was to complete the construction of the Malburg Generating Station and to upgrade the City's electric transmission and distribution systems. For the current year, the City elected to have (he Redevelopment Agency Fund transfer $624,824 to the Parcel Tax Fund (Other Governmental Fund) to reimburse the Parcel Tax Fund for capital expenditures related with the construction of new fire stations. -34- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) .June 30, 2006 NOTE 5 — CAPITAL ASSETS Capital asset activity of governmental activities for the year ended June 30, 2006 was as follows: Balance Transfers & Balance July t, 2005 Additions Deletions Adjustments June 30, 2006 Covernmental activities: Capital assets, not being depreciated. - Land - General Fund S 28,502,457 S 20,180,836 S $ 48,683.293 Land - Redevelopment Agency Fund (RDA) 23,172,030 864,485 (3,282,440) (8,401,673) 12,352,402 Total land 51.674,487 21,045,321 (3,282,440) (8,401,673) 61,035,695 Construction in progress - General Fund 1,266,211 2,446,579 (288,610) 3,424,180 Construction in progress - RDA - 962,883_ - 962,893 Total construction in progress 1.266,211 3,409,462 (288,610) 4,387,063 Total capital assets, not being depreciated 52,940,698 24,454,783 (3,282,440) (8,690,283) 65,422,758 Capital assets. being depreciated Infastructure - General Fund 23,684,060 M2,068 288,610 24,284,738 Building and Improvements General Fund 15,836,515 - - 15,83.6,515 Building and Improvements RDA - 1,768,021 1.768,021 Machinery and Equipment -General Fund 11,372,970 1,970,838 13,343,808 Total capital assets, being depreciated 50,893,545 4,050,927 288,610 55,233,082 Less accumulated depreciation for: Infastructurc - General Fund (17,685,205) (595,703) (18,280,909) Building and Improvements - General Fund (5,556,719) (353,579) (5,910,298) Building and Improvements* - PDA (22,100) (22,100) Machinery and Equipment - General Fund (5,978.147) (1,121,350) (7,099,497) Total accumulated depreciation (29,220,071) (2,092,732) (31,312,803) Total capital assets, being depreciated, net Infastruclure - General Fund 5,998,855 (283,635) 288,610 6,003,830 Building and Improvements - General Fund 10,279,796 (353,579) - 9,926,217 Building and Improvements - RDA 1,745,921 1,745,921 Machinery and Equipment- General Fund 5,394,823 849,488 6,244,311 Total 21,673,474 1,958,195 288,610 23,920,279 Governmental activities capital assets. net S 74,614,172 S 26,412,978 S (3,282,440) S (8,401,673) S 89,343,037 In the current year, the Redevelopment Agency Fund has elected to reclassify $8,401,673 ofi(s land to land held for resale. Depreciation Depreciation expense was charged to governmental functions as follows: General government $ 850,722 Public safely 923,748 Public works 253,970 Health services 64,292 Total depreciation expense - governmental functions S 2,092,732 -35- El Cl TY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 5 — CAPITAL ASSETS (CONTINUED) Capital asset activity ofbusiness-type activities for the year ended June 30, 2006 was as follows: Balance Transfers Balance July 1, 2005 Additions Deletions Adjustments June 30,2006 Basiness-type activilles: Capital assets. Fiat being depreciated-- Und Construct ion in progress - Light and Power Construction in progress - Water Construction in progress - Gas Consiruaion in progress - Fib�rOpfic Total capital assets, nat being depreciated Capital assets. being depreciated Production plant - Light and Po.cr Transmission plant - Light and Power Distribution plant - Lightand Power General plant - Light and Power Malburg Generating Station plant - Light and Power Buildings - Light and Power Water utility plant Gas utility plant Fiber Optic utility plant Total capital assets, being depreciated Less accumulated depreciation for. Production plant - Light and Power Transmission plant - Light and Power Disu-itunion plant - Light and Power General plant - Light and Power Malburg Generating Station plant - Light and Power Buildings - Light and Power Water utility plant Gas utility plant Fiber Optic utility plant Total accumulated depreciation Total capital assets, being depreciated. net Production plant - Light and Power Transmission plant - Light and Power Distribution plant - Light and Power Gcncfal plant - Light and Power Malburg Generating Station plant - Light and Power Buildings - Light and Power Water utility plant Gas utility plant Fiber Optic utility plant Total Business -type activities capital assets, net s 45,D00 190,514,579 31,417,580 (208,351,163) 13,580,996 839,848 - (2,596) 837,262 19,023.822 1,300,849 (20,324,671) 2,068,442 211,778 2,280,220 212.491,691 3Z,930,207 (229,678,420) 16,743,478 10,015,455 684,659 10,700,114 61.448,019 4,212,894 65,660,903 49,652,505 1,015,173 50,667,678 3,976.419 897,6 1 4,874,070 - - 208,352,126 2208,352,126 481,800 - 481,800 14.434,164 397,498 - 14,831,662 46,970 1,113,728 20;324,671 21,485.369 __jQ�055,332 753,280 753,290 9,074,873 228,676,797 377,807,002 (5.495,705) (372,027) (5,867,732) (34,446,396) (2,782.919) (36,729,315) (17,891,3 11) (1,761,630) (19,652,941) ,(2,091,419) (169,464) (2.260,882) (2,604,402) (2,604,402) (265,836) (13,452) (279,288) (10,215,908) (342,23 1) (10,558,139) (2,936) (282,422) (285,358) ---(70.409,510) (18,832) (18,832) (7,847,379) (78,256,989) 4.519,750 312.632 -4,832.382 27,001,62) 1 �929,%S 28,931,5aa 31,761,194 (746,457) 31,014,737 1,885.061 128,187 2,613,188 (2.604,402) 208.352,126 205,747,724 215.964 (13,452) 202.512 4.218,256 55,267 4,273,523 44,034 831,306 20,324.671 21.2DO,01 I 734,448 - 734,448 69.645.822 1,227,494 228,676,797 299,550,113 S 282,137,513 S 34,157.701 S S (1,623) S 316,293.591 -36- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) J u ne 30, 2006 NOTE 5 — CAPITAL ASSETS (CONTINUED) Depreciation Depreciation expense was charged to (he business -type functions as follows: Light and Power depreciation S 7,203,894 Gas Fund depreciation 292,422 Other Enterprise Fund depreciation 361,063 Total depreciation expense - business-typ e functions S 7,847,379 Cooitalized bond Interest For the period July 1, 2005 through October 17, 2005 the City capitalized interest paid in relation to the Series 2004A, 2004B, and 2004C bonds. These bonds were issued in 2004 in order to finance the construction of the Malburg Generating Station which became operational on October 17, 2005. City incurred S 1,659,254 of interest expense that was capitalized during the year ended June 30, 2006 net oftax exciriptinvestment income. NOTE 6 — LONG-TERM OBLIGATIONS During the fiscal year 2006, a total of$480,265,000 in long-term obligations consisting of the following: * $49,420,000 Redevelopment Agency of the City of Vernon Industrial Redevelopment Project Tax . Allocation Bonds, Series 2005 * S2D0,000,000 Vernon Natural Gas Financing Authority Variable Rate Revenue Bonds (Vernon Gas Project), 2006 Series A * $115,440,000 Vernon Gas Project Variable Rate Revenue Bonds, 2006 Series B, and * $I 15,405,GOO Vernon Gas Project Variable Rate Revenue Bonds, 2006 Series C The Industrial Redevelopment Project Tax Allocation Bonds, Series 2005 were issued to provide funds to (i) finance various redevelopment projects in or benefiting the Agency's Industrial Redevelopment Project area, (ii) fund the resqrve requirement for the Series 2005 Bonds, and (iii) pay the costs of issuance related to the Series 2005 Bonds. The Vernon Gas Project 2006 Variable Rate Revenue Bonds were issued to provide funds to (i) Finance a portion of the purchase by the City of a fifteen -year, prepaid supply of natural gas from Citigroup Energy Inc. pursuant to an Agreement for Purchase and Sale ofNatural Gas, between the City and Citigroup Energy Inc.; and (ii) pay the costs of issuing the 2006 Bonds. During the fiscal year 2005, the City issued $90,150,000, 2004 Series A, S83,575,000, 2004 Series B, $39,875,000, 2004 Series C, and $69,100,000, 2004 Series D, Electric System Revenue Bonds. The 2004 Bonds were issued to provide funds (i) to refund SI 62,6 10,000 of outstanding Electric System Revenue Bonds of the City; (ii) to finance the costs of improvements to the City's substation and distribution facilities and certain costs of completion of the City's Malburg Generating Station; (iii) to finance the reimbursement to the City of certain costs incurred in connection with the City's electric system facilities; (iv) to fund a deposit to the Debt Service Reserve Fund; and (v) to pay the costs of issuance of the 2004 Bonds. -37 - I CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 6 — LONG-TERM OBLIGATIONS tCONTINUED) A summary of bonds payable for governmental and business -type activities is as follows: Annual Interest Principal Originallssue Outstandingat Bonds Maturity Rates Installments Amount June 30, 2006 Electric System Revenue 04/01/37 Variable To begin 04/01129: S 90,150,OGO $ 90,150,000 Bonds, 2004 Series A $2,000,000 - $12,925,000 Electric System Revenue 04/01/29 Variable To begin 04/01118: 83,575,000 83,575,000 Bonds, 2004 Series B S50,000- S9,525,000 Electric System Revenue 04/01/39 Variable To begin 04/01/37: 39,875,000 39,875,000 Bonds, 200� Series C $11,500,000 - S 14,400,000 Electric System Revenue 04/01/18 Variable $3,800,000 - 69,100,000 61,825,000 Bonds, 2004 Series D S6,525,000 RDA Industriai 09/01135 Fixed To begin 09/01/09: 49,420,000 49,420,000 Redevelopment Project Tax $1,160,000 - Allocation Bonds, 2005 Series $3,460,000 Variable Rate Revenue Bonds 08101/21 Variable To begin 08/0 1 /07: 200,000,ODO 200,000,000 (Vernon Gas Project), 2006 $9,950,000 - Series .4 $17,300,000 Variable Rate Revenue Bonds 08/01/21 Variable To begin 08/01/07: 115,440,000 115,440,000 (Vernon Gas Project), 2006 S5,7 10,000 - Series 8 S10,070,G00 Variable Rate Revenue Bonds 08101121 Variable To begin 08101/07: 115,405,000 115,405,000 (Vernon Gas Project), 2006 $5,710,000 - Series C $10,070,000 Premium 902,046 Discount (1,559,893) Deferred amount on refunding (7,719,814) Total Revenue Bonds S 762,965,000 S 747.312,339 *The Series 2004 Bonds variable rate is set periodically through an auction process. Rates on [he 2004A and 2004B bonds are reset through an auction process every 7 days. Rates on the 2004C and 2004D bonds are reset through an auction process every 28 days. Rates on the Series 2005 Bonds arc fixed rates ranging from 3-25% to 5.25%. Rates on the 2006A Bonds arc based on 7-day Auction Periods. Rates on the 2006B and 2006C Bonds are based on a Weekly Interest Rate determined by Citigroup Global Markets, Inc. utilizing best efforts to remarket [he 2006B and 2006C Bonds which are subject to optional and mandatory tender. -38- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) .June 30, 2006 NOTE 6 — LONG-TERM OBLIGATIONS (CONTINUED) As of June 30, 2006, annual debt service requirements of business -type activities to maturity are as follows: Electric System Revenue Bonds Payable Year ending June 30: Principal _ lntcrest* 2007 S 3,975.NO S 11,999,551 2008 4,17-S.000 11,784,176 2009 4,350,000 11.558,277 2010 4.550,000 11,322,752 2011 4,775,000 11,076,2 56 2012-2016 27,200,000 51.3D4,)43 2017-202 1 34,025,000 43,490.707 2022-2026 41,075,000 35,68S,826 2027-2031 49,550,000 26,528,703 2032-2036 59,875,000 15.476,094 2037-2039 41,875,000 3,085.770 Total requirernrnts S 275,425,OW S 233,312,255 As of June 30, 2006, interest on the 2004 Series A, B, and C was calculated at the June 30, 2006 BMA rate of 3.970%. Interest on the 2004 Series D was calculated at the June 30, 2006 one month LIBOR rate of 5.3344%. For additional disclosure on interest rate swaps see Note 7. Industrial Redcvclopment Projoct Tax Allocation Bonds Payablc Year ending Junc 30: Principal Inimst. 2007 S $ 2,175,093 2008 2,175,093 2009 2,175,093 2010 1,160,000 Z, 157,419 2011 1,285,000 2,120,167 2012-2016 6,720,000 9,928,127 2017-2021 7.720,000 8,452,644 2022-2026 7,300,000 6,679,092 2027-2031 10,020,ODO 4,837,959 2032-2036 15,215,ODO 1,931,242 S 49,420,W0 S 42.631,929 As of June 30, 2006, debt service was calcula(ed based -upon the fixed coupon rates of the bonds ranging from 3.25% to 5,25%. For additional disclosure on basis swap see Note 7. -39- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 6 — LONG-TERM OBLIGATIONS (CONTINUED) Variable Rate Revenue Bonds Payable Year ending June 30: Principal Interest* 2007 - s 18,475,892 2008 21,370,000 17,712.20 2009 222330,000 16,761,476 2010 23.135,000 15,775.117 2011 24,055,000 14,750,127 2012-2016 136,020,000 56,842,086 2017-2021 166,495,000 24,079,795 2022 37,440,000 267,583 Total requirements S 430,845,000 S 164,664,283 As of June 30, 2006, debt service for 2006 Series A, B, and C was calculated at the June 30, 2006 BMA rate of 3.970%. For additional disclosure on interest rate swaps see Note 7. Cha"es in lonk-ferm liabilities The following is a summary of long-term liabilities transactions for the fiscal year ended June 30, 2006: Amounts Balance Balance Due Within My J, 2005 Additions Reductions . )une 30,2006 One Year Covernmental activities Ponds payable S - S 49,420, 000 S S 49,420,ODO S - Bond premium 933,457 (31,411) 902,046 44,345 Claims payable 4,992,957 2,998,117 (632,501) 7.358.573 2,452,858 Compensated absences 944.768 928,523 (944,768) 928,525 929,525 $ 5,937,725 S L4 �280.099 S (1,608,680) S 58,609,144 S 3,425,729 flusiness-lypc activities; Bonds payable S 279,225,000 S 430,945,000 S (3,800,000) S 706,270,000 S 3.975,000 Bond discount (1,634.532) - 74,639 (1.559,893) (74.639) Deferred amount on refunding (8,052,628) - 332.814 (7,719,814) (332,814) Cumpen.satcd absences 1 125,146 200.168 (125,146) 200,168 200.168 S 269,662,986 S 431,04 5.168 S (3.517,693) S 697.190,461 S 3.767,715 -40- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS Basis Swan — 2003 Series A and B Bonds Objective of the interest rate swap� As a means to mitigate its exposure to interest rate risk, the City entered into an interest basis swap in connection with its S8T5 million 2003 Electric System Series A and Series B bonds (the "2003 Series AB Bonds"). Terms: As originally structured, the 2003 Series AB Bonds and the related swap agreement were scheduled to mature on April 1, 2033, and the swap's aggregate notional amount of S87.5 million matched the par amount of the 2003 Series AB Bonds. The swap was entered into in July 2003. Under the swap, the City pays the countcrparty payments equal to the average of the weekly j3ond Market Association (BMA) variable rate index and receives payments equal to 80.2%, lite London Interbank Offered Rate (LIBOR) One -Month index. Fair value: Because the differential between the BMA index and LIBOR index has increased since execution of the swaps, the swap has an aggregate positive fair value of $1,521.441 as of June 30, 2006. The fair value was estimated using the zero -coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero - coupon bonds due on the date of each future net settlement on the swap. Credit risk: As the swap's fair value as of June 30, 2006 is positive, the City has credit exposure to the counterparty equal to the fair value amount. The swap counterparty Bank of America, was rated AA by Standard & Poor's and Aa by Moody's Investors Service as of June 30, 2005. To mitigate the potential for credit risk, if lite counterparties credit quality falls below A+/Aa2, the fair value of the swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. Basis risk: The swap exposes (he City to basis risk should the relationship between LIBOR and BMA.converge to a ratio higher than that stated in the swap. If a change occurs that results in the rates moving to a convergence ratio greater than dial stated in the swap, the swap may not provide the expected interest rate risk mitigation. Termination risk: The City or its counterparty may terminate the swap if the other party fails to perform under the terms of the contract. The swap may be terminated by the City if (tie counterpany's credit quality rating falls below "A—" as issued by Standard &Poor's or"AY as issued by Moody's Investors Service. Ifat (he time of lermination, the swap has a negative fair value, the City would be liable to the counterparty for a payment equal to the swap's fair value. Swup payments and associated debt: In December 2004, the City defeased the 2003 Series AB Bonds with proceeds of its 2004 Series A bonds. Because interest payments on the 2004 Series A bonds are determined based on a variable rate short'term basis, the City elected to retain the swap. The City expects that as interest rates rise, the difference, or spread, between short-term tax-exempt rates and short-term taxable rates will increase. Under this expectation, the City will receive payments under (he swap greater (han its payments to the counterparty. As a net receiver on the swap, the City would then have such monies available to offset higher debt service requirements on its 2004 Series A bonds. -41 - 11 CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Basis Swap — 2003 Series C Bonds Objective of the.inierest rate swap: As a means to reduce its bond interest cost, the City entered into an interest basis swap in connection with its $75A I million 2003 Electric System Series C bonds (the "2003 Series C Bonds�'). Terms: As originally structured, the 2003 Series C Bonds and the related swap agreement ' mature on April 1. 2033, and the swap's aggregate notional amount of $75,11 million matches the par amount of the 2003 Series C Bonds. The swap was entered into in August 2003. Under the swap, the City pays the counterparty payments equal to the average of the weekly Bond Market Association (BMA) variable rate index and receives payments equal to 78.6% of the London Interbank Offered Rate (LIBOR) one -month index. Fair value: Because the differential between the BMA index and LIBOR index has increased since execution of the swaps, the swaps have an aggregate positive fair value of $624,884 as of June 30, 2006. The fair value was estimated using the zcro-coupon method. This method calculates the future net settlement payments required by the sw.*p, assuming that (he current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates imp -lied by the current yield curve for hypothetical zero -coupon bonds due on the date of each future net settlement on the swap, Credit risk: As the swap's fair value as of June 30, 2006 is positive, the City has c.redit exposure to [he counterparty equal to the fair value amount. The swap counterparty, Wachovia, was rated AA- by Standard & Poor's and Aa2 by Moody's Investors Service as of June 30, 2005. To mitigate the potential for credit risk, if the counterparty's credit quality falls below A+/Aa2, the fair value of the swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. Basis risk: The swap exposes [he City to basis fisk should the relationship between LIBOR and BMA converge to a ratio higher than that stated in the swap. If a change occurs that results in the rates moving to a convergence ratio greater than that stated in the swap, the swap may not provide the expected intcrcst cost savings. Ter7nination risk: The City or its counterparly may terminate the swap if the other party fails to perform under the terms of [he contract. The swap may be terminated by the City if the counterparty's credit quality rating falls below "A—" as issued by Standard & Poor's or "AY as issued by Moody's Investors Service. I f at the time of termination, the swap has a negative fair value, the City would be liable to the counterparty for a payment equal to the swap's fair value. Swap payments and associated debt: In December 2004, the City defeased the 2003 Series C with proceeds of its 2004 Series B bonds. Because interest payments on the 2004 Series B bonds are determined based on variable rate short term basis, the City elected to retain the swap. The City expects that as interest rates rise the difference, or spread, between short-term tax-exempt rates and short-tenn taxable rates will increase. Under this expectation, the City will receive payments under the swap greater than its payments to the counterparty, As a net receiver on the swap, the City would then have such monies available to offset higher debt service requirements on its 2004 Series B bonds. -42- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Fixed to Variable Swap — 2003 Series C Bonds Objective of the interest rate swap: For this bond issuance the City's asset/liability strategy is to have variable rate debt exposure consistent with its variable rate asset exposure; the result being that as interest rates increase, the City's investment income will offset its increased variable rate debt cosm Terms: In April 2003, the City entered into a pay -variable, receive -fixed interest rate swap for the term of its $75,110,000 2003 Series C Electric System revenue bonds. The notional amount. of the swap was $75,110,000. In June 2003, the City elected to terminate the portion of the swap through April 2008 in exchange for a payment of S4,170,0W from the swap counterparty. Under the remaining terms of the swap, the swap becomes effective in April 2008 and terminates in April 2033; the City pays a variable rate equal in the Bond Market Association Municipal Swap Index (BMA), which was 3.97 percent at June 30, 2006, plus 0.84% and receives fixed-rate payments equal to the actual semi-annual interest payments due on the Series C bonds. In December 2004, the City defeased the 2003 Series C Bonds with proceeds of its 2004 Series B bonds. The City expects to terminate this swap prior to its effective date of April 2008. � Fair value: As of June 30, 2006, the swap had a negative fair value of $3,023,394. The fair value was estimated using the zero -coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero - coupon bonds due on (he date of each future net settlement on the swap. Credit risk: As the swap*s fair value as of June 30, 2006 is negative, the City does not have any credit exposure to the counterparty. Should the swap's. fair value become positive, the City would have credit exposure to the counterparty equal to the fair value amount. As of June 30, 2006, the swap counterparty, Bank of America, was rated AA by Standard & Poor's and Aa by Moody's Investors Service. To mitigate the potential for credit risk, if [he counterparty's credit quality falls below A+/Aa2, the fair value of the swap will be fully collateralized by the counterpany with U.S. government securities. Collateral would be posted with a third -party custodian. Interest rate risk: Beginning in April 2008, if [be swap is not previously terminated, the swap increases the City's exposure to interest rate risk. As BMA increases, the City's net payment on the swap increases. Termination risk: The City or th c counterparty may terminate (he swap if the other party fails to perform under the terms of the contract. In addition, the City may optionally terminate the agreement on any date. I f at the time of termination the swap has a negative fair value, [he City would be liable to the counterparty for an amount equal to the negative fair value. SKvp payments and associated debt: -the debt associated with the swap, 2003 C Bonds, has been defeased. 'Me City expects to terminate this swap prior to its effective date of April 2008. C11 -43- L CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Variable to Fixed Swap — 2004 Series A Bonds Objective of the interest rate swap: As a means to reducing its overall exposure to interest rate risk and achieving a lower cost of capital relative to long term fixed rate bonds, the City elected to issue its $90,150,000 2004 Series A Electric System revenue bonds (the "2004 Series A Bonds") in a variable rate mode and enter to a fixed payer swap to achieve synthetic fixed debt. Termsi In Decciriber 2004, the City entered into a pay -fixed, receive-variablc interest rate swap for the term of the 2004 Series A Bonds. The notional amount of the swap is $90,150,000. Under the original terms of the swap, the City pays the counterparty a fixed rate of 3.637% and receives from the counterparty variable -rate payments equal to 62.97% of the London interbank Offered Rate (LIBOR) one-mon(h index plus 0.1191/6. On March 16, 2006, the City amended its fixed payment to 3.607% to the counterparty. The City expects that the variable -rate payments from the swap will approximate the interest payments on the 2004 Series A Bonds, thereby creating synthetic fixed rate debt. The notional amount of the swap and the amortization of the principal of the 2004 A Bonds arc exactly matched. Fair value: As of June 30, 20G6, the swap had a positive fair value of $1;305,648. The fair value was estimated using the zero -coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero - coupon bonds due on the date of each future net settlement on the swap. Credit risk As the swap's fair value as ofJune 30, 2006 is positive, the City has credit exposure to the counterparty equal to the fair value amount. As of June 30, 2006, the swap counterparty, Morgan Stanley was rated A+ by Standard & Poor's and Aa3 by Moody's Investors Service. To mitigate the potential for credit risk, if the counterparty's credit quality falls below (BBB/Baa2), the fair value of the swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. Interest rate risk: The swap is structured to reduce the City's exposure to interest rate risk. Basis risk: The swap exposes the City to basis risk should the relationship between LIBOR and BMA converge to a ratio higher than variable leg of the swap. Termination risk: The City or the counierparty may terminate the swap if the other party fails to perform under the terms of the contract. In addition, the City may optionally terminate the agreement on any date. If at the time of termination the swap has a negative fair value, the City would be liable to the counterparty for an amount equal to the negative fair value. Swap payments and associated debt: It is expected that the variable payments received by the City on the swap will approximate the variable interest payments on the 2004 Series A Bonds, resulting in the City's net interest exposure being equaled to (he fixed payment on (he swap to the counterparty. Because the variable payments on the 2004 Series A Bonds and the swap are on different bases, some basis differential is expected from time to time. -44- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) The following summarizes the expected net debt service if BMA remains constant 3.970% and I Month LIBOR remains constant at 5.334% (actual rates as of June 30, 2006). Ycar Ending Principal Inicrest Ran: Tut.1 June 30 Amunt intucst Swap, Net Debt Service 2007 S S 3,578.955 S 121,038 S 3,699,993 2008 3,578,955 121,039 3,699,993 2009 3,578,955 121,038 3,699,993 2010 3,578,955 121,038 3,699,993 2011 3,578,955 121,038 3,699,993 2012-2016 17,994.775 605.189 18,499,964 2017-2021 17,894.775 605,189 18,499,964 2022-2026 17,894.775 605,189 18,499,964 2027-2031 28,275,1100 16,718.166 565,397 45,558,563 2032-2036 59,875,000 7,313,567 247,340 67,435,907 2037 2,000,000 66,167 2,238 2,068,404 S 150,000 s 95,677.000 S 3,235,732 S 189.D62,732 Variable to Fixed Swap — 2004 Series B Bonds Objective ofthe interest rate swap: As a means to reducing its overall exposure to interest rate risk and achieving a lower cost of capital relative to long term fixed rate bonds, the City elected to issue its $83,575,000 2004 Series B Electric System revenue bonds (the "2004 Series B Bonds") in a variable rate mode and enter to a fixed payer swap to achieve synthetic fixed debt. Terms: In December 2004, the City entered into a pay -fixed, receive -variable interest rate swap for the term of its 2004 Series B Bonds. The notional amount ofthe swap is $83,575,000. Under the ierTns ofthe swap, the City pays a Fixed rate of 3.572% and receives variable -rate payments equal to 62.87% of the London Interbank Offered Rate (LIBOR) one -month index plus .119%. On March 16, 2006, the City revised its fixed payment to 3.542% to the counterparty. The City expects that the variable -rate payments from the swap will approximate the interest payments on [he 2004 Series B Bonds. The notional amount ofthe swap and the amortization of the principal of the 2004 Series B Bonds are exactly matched. Fair value: As of June 30, 2006, the swap had a positive fair value of $1,455,922, The fair value was estimated using the zero -coupon method.'This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero. - coupon bonds due on the date of each future net settlement on the swap. Credit risk: As the swap's fair value as ofJune 30, 2006 is positive, the City has credit exposure to the counterparty equal to the fair value amount. As of June 30, 2006, the swap counterparly, Morgan Stanley was rated A+ by Standard & Poor's and Aa3 by Moody's Investors Service. To mitigate the potential for credit risk, if the counterparty's credit quality falls below (BBB/Baa2), the fair value of the swap will be fully collateralized by the counict-party with U.S. government securities. Collateral would be posted with a thifd-party custodian. Interest rate risk: The swap is structured to reduce the City's exposure to interest rate risk. Basis risk: The swap exposes the City to basis risk should the relationship between LIBOR and BMA converge to a ratio higher than variable leg ofthe swap. -45- 0 CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Termination risk: The City or the counterparty may terminate the swap if the other party fails to Perform under the terms of (he contract. In addition, the City may optionally terminate the agreement on any date. If at the time of termination the swap has a negative fair value, the City would be liable to the counterparty for an amount equal to the negative fair value. Swvp payments and associated debt: It is expected that the variable payments received by the City on the swap will approximate the variable interest payments on the 2004 Series B Bonds, resulting in the City's net interest exposure being equal to the fixed payment on the swap to the counterparty. Because the variable payments on the 2004 Series B Bonds and the swap are on different bases, some basis differential is expected from time to time. The following summarizes the expected net debt service if BMA remains constant 3.970% and I Month LIBOR remains constant at.5.334% (actual rates as ofJune 30, 2006). Year Ending Principal Intercst Rate Total June 30 Arno.nt Interest S.ap, Nct Debt Service 2007 S 3.317.928 S 112,210 S 3.430.138 2008 3,317,928 112,210 3,430,138 2009 3,317,928 112,210 3,430,138 2010 3,317,928 .112,210 3,430,138 2011 3,317,928 112,210 3,430,138 2012-2016 16,589,638 561,050 17,150,688 2017-2021 21.225,ODO 15,623,439 528,374 37.376,813 2022-2026 41,075,000 8,967,403 303,272 50,345,614 2027-2029 2f,275,000 1.286.445 43,507 22,604,952 S 83,575,000 S 59,056,562 S - 1,997,253 S 144,628,815 Vairiable to Fixed Swap — 2004 Taxable Series D Bonds Objective ofthe interest rate swap: As a means to reducing its overall exposure to interest rate risk, the City elected to enter into a fixed payer swap to achieve synthetic fixed debt with respect to its S69,100,000 2004 Taxable Series D Electric System revenue bonds (the "2004 Taxable Series D Bonds") issued in a variable rate mode. Terms: On March 16, 200 - 6, the City entered into a pay -fixed, receive- variable interest rate swap for the term of its 2004 Taxable Series D Bonds. The notional amount of the swap is $61,825,000. Under the terms of the swap, the City pays a fixed rate of 5.227% and receives variable -rate payments equal to 100.00% of the London Interbank Offered Rate (LIBOR) three-month index. The City expects that the variable -rate payments from the swap will approximate the interest payments on the 2004 Taxable Series D Bonds. The notional amount of the swap and the amortization of the principal of the 2004 Taxable Series D Bonds arc exactly matched. Fair value: As of June 30, 2006, the swap had a positive fair value of S 1,364,979. The fair value was estimated using the zero -coupon method. This method calculates the future net settlement payments required by (he swap, assuming that the current forward rates impli ed by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero - coupon bonds due on the date of each future net settlement on the swap. Credit risk: As the swap's fair value as ofJune 30, 2006 is positive, the City has credit exposure to the counterparry equal to the fair value amount. As of June 30, 2006, the swap counterparty, Morgan Stanley was rated A+ by Standard & Poor's and Aa3 by Moody's Investors Service. To mitigate the potential for credit risk, if the counterparty's credit quality falls below (BBB/Baa2), the fair value of the swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. . . Interest rate risk: The swap is structured to reduce the City's exposure to interest rate risk. -46- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Basis risk: The swap exposes the City to basis risk should the three month LIBOR rate be less than the rate on the 2004 Taxable Series D Bonds. Termination risk: The City or the counterparty may terminate the swap if the other party fails to perform under the terms of the contract. In addition, the City may optionally terminate the agreement on any date. If at the time of termination the swap has a negative fair value, the City would be liable to the counterparty for an amount equal to the negative fair value. Swap payments and associated debt: It isexpectcd that the variable payments received by the City on (he swap will approximate the variable interest payments on the 2004 Taxable Series D Bonds, resulting in the City's net.in(crest exposure being equaled to the fixed payment on the swap to the counterparty. Because [he variable payments on the 2004 Taxable Series D Bonds and the swap are on different bases, some basis differential is expected from time to time. The following summarizes the expected net debt service if I Month LIBOR remains constant at 5.3344% and the 3 Month LIBOR remains constant at 5.4806% (actual rates as of June 30, 2006). Year Ending Principal Interest Rate Total June 30 Amount Interest S.ap, Net Debt Service 2DO7 S 3.975.000 S 3,352,072 S (65,689) S 7,261,383 2009 4,175,OW 3,132,391 (61,384) 7,246,007 2009, 4,350,000 2,901.978 (56.868) 7,195.110 2010 4,550,000 2.661,745 1 (52,161) 7,159,584 2011 4,775,000 2,410.322 (47,234) 7,138.088 2012-2016 27,200,000 7.892.977 (154,674) 34,938,303 2017-2018 12,800,000 942,206: (18,464) 13,723.742 S 61,825,000 S 23,293,691 S (456,472) S 84,662,219 Basis Swar) — Series 2005 Objective ofthe interest rate swap: As a means to reduce its bond interest cost, the RDA entered into an interest basis swap in connection with its $49,420,000 Industrial Redevelopment Project Tax Allocation Bonds, Series 2005 (the "Series 2005 Bonds"). Terms: As originally structured, the Series 2005 Bonds and the related swap agreement mature on September 1, 2035, and the swap's aggregate notional amount of$49,420,000 million matches the par amount ofthe Series 2005 Bonds. The swap was entered into on February 16, 2006. Under the swap, the RDA pays the counterparty payments equal to the average of the weekly Bond Market Association (BMA) variable rate index and receives payments equal to 63.0% plus 0.72% of the London Interbank Offered Rate (LIBOR) three-month index. Fair vohte: Becau ' the differential between the BMA index and LIBOR index has decreased since execution of the swaps, the swaps5ohave an aggregate negative fair value of $231,6§9 as of June 30, 2006. The fair value was estimated using the zao-coupon method. This method calculates the future net settlement payments required by the swap, assuming that (he current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero -coupon bonds due on the date of each future net settlement on the swap, -47- H CFrY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — BOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Credit risk: As the swap's fair value as of June 30, 2006 was negative, the RDA does not have credit exposure to the counlerparty. Should the RDA's fair value become positive, the RDA would have credit exposure to the counterparty equal to the fair value amount. The swap counAerparty, Lehman Brothers, was rated At by Standard & Poor's and A I by Moody's Investors Service as of June 30, 2006. To mitigate the potential for credit risk, if the counterparty's credit quality falls below "A-" or "AY, the fair value of the swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. Basis risk. The swap exposes the RDA to basis risk should the relationship between LIBOR and BMA converge to a ratio higher than that stated in the swap. If a change occurs that results in the rates moving to a convergence ratio greater than that stated in (tic swap, the swap may not provide the expected interest cost savings. Termination risk: The RDA or its counterparty may terminate the swap if the other party fails to perform under the terms of the contract. The swap may be terminated by the RDA at any time. If at the time of lermination, the swap has a negative fair value, the,RDA would be liable to the counterparly. for a payment equal to [lie swap's fair value. The following summarizes the expected net debt service if BMA remains constant 3.970% and 3 Month LIBOR remains corlislant at 5.4806% (actual rates as of June 30, 2006). Year Ending Principal Basis 'rotai June 30 Arnmrit Interest Swap, Net Debt Service 2D07 S S 2.275,306 S (100,213) $ 2,175,093 2008 2,275,3136 (100.213) 2,175.093 2009 2,275,306 (100.213) 2,175,093 2010 1,160,000 2,256,456 (99,037) 3.317,419 2011 1.285,000 2,216,725 (96.558) 3,405,167 2012-2016 6,720.000. 10.371,369 (443,242) 16,648,126 2017-2021 7,720,000 8.822,491 (369,847) 16,172.644 2022-2026 7300,000 6.972,025 (292,933) 13.979,092 2027-2031 10,020,000 5,046,719 (208,760) 14,857,959 2032-2036 15,215,000 2,012,875 (81,633) 17,146,242 S 49,420,000 S 44,524,578 S (1,892,649) S 92,05 1,�29 Variable to Fixed Swap — 2006 Series A Gas Bonds Objective ofthe interest rate swap: As a means to reducing its overall exposure to interest rate risk, the Vernon Natural Gas Financing Authority elected to enter into a fixed payer swap to achieve synthetic fixed debt with respect to its $200,000,000 Variable Rate Revenue Bonds (Vernon Gas Project), 2006 Series A (the "2006 Scries.A Gas Bonds") issued in a variable rate mode. Terms: The City entered into four (4) pay -fixed, receive- variab le interest rate swaps for the term ofiis 2006 Series A Gas Bonds. The notional amounts of each of the four (4) swaps is $50,000,000. Under the terms of the swaps, the City pays a fixed rate of 3.683% and receives variable -rate payments equal to 62.6% of the London Interbank Offered Rate (LIBOR) one month index. The City expects that the variable -rate payments from the swaps will approximate the interest payments on the 2006 Series A Gas Bonds. The notional amount of the swaps and the amortization of the principal of the 2006 Series A Gas Bonds are exactly matched. Fair value: As of June 30, 2006, the swaps had a negative fair value of S 1,929,994. The fair value was estimated using the zero -coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the �ield curve correctly anticipate future spot interest rates. These payments are then discount'ed using the spot rates implied by (he current yield curve for hypothetical zcro�- coupon bonds due on the date of each future net settlement on the swap. -48- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 — HOND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Credit risk: As the swap's fair value as of June 30, 2006 is negative, the City does not have credit exposure to the counterparty. Should the City's fair value become positive, the City would have credit exposure to the counierparty equal to the fair value amount. As of June 30, 2006, the swap counterparty, Citibank, N.A. was rated AA by Standard & Poor's and Aal by Moody's Investors Service. To mitigate the potential for credit risk, if the counterparly's credit quality falls below (A-/A3), the fair value of the swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. . interest rate risk- The swap is strucWred to reduce the City's exposure to interest rate risk. Basis risk: The swap exposes the City to basis risk should the relationship between LIBOR and BMA converge to a ratio higher than variable leg of the swap. Termination risk: The City or the counterparty may terminate the swap if the other party fails to perform under [he terms of the contract. In addition, theCity may optionally terminate the agreement on any date. if at the time of termination the swap has a negative fair value, the City would be liable to the counterparty for an amount equal to the negative fair value. Swap payments and associated debt: It is expected that the variable payments rcceived by the City on the swap will approximate the variable interest payments on [he 2006 Series A Gas Bonds, resulting in the City's net interest exposure being equaled to the fixed payment on the swap (o the counterparty. Because the variable payments on (he 2006 Series A Gas Bonds and the swap are. on different bases, some basis differential is expected from time to time. The following summarizes the expected net debt service if BMA remains constant 3.970% and I Month LIBOR remains constant at 5.3344% (actual rates as of June 30, 2006). Year Ending Principal Interest Rate Total June 30 Amount Interest SW2p, Net Debt Service 2007 7,940.ODO 687,331 8,627,331 2008 9,950,OW 7.610,821 658,836 18,219,656 2009 10,400,000 7,200,918 623,352 18,224,270 2010 -10,775.000 6,775.632 586,537 18,137,169 2011 11,200,000 6,333,804 548,290 18.082,094 2012-2016 63,225.000 24.385,229 2,110,923 89,721.152 2017-2021 77,150.000 10,312,406 892,700 98,355,106 2022 17.300,000 114,468 9,909 17,424,377 $ 200,000.000 S 70,673,278 S 6,117,878 S 176,791,IS6 Variable to Fixed Swap — 2006 Series B and C Gas Bonds Objective of the interest row swap: As a means to reducing its overall exposure to interest rate risk, the Vernon Natural Gas Financing Authority elected to enter into a fixed payer swap to achieve synthetic fixed debt with respect to its $115,440,000 Variable Rate Revenue Bonds (Vernon Gas Project), 2006 Series B and $115,405,000 Variable Rate Revenue Bonds (Vernon Gas Project), 2006 Series C (the "2006 Series B and C Gas Bonds") issued in a variable rate mode. Terms: The City entered into a pay -fixed, receive- variable interest rate swap for the term of its 2006 Series B and Series C Gas Bonds. The notional amount for the swap is $230,845,000. Under the terms of the swaps, the City pays a fixed rate of 3-753% and receives variable -rate payments equal to 64.8% of the London Interbank Offered Rate (LIBOR) one month index. The City expects that the variable -rate payments from the swaps will approximate the interest payments on the 2006 Series B and C Gas Bonds. The notional amount of the swaps and the amortization of the principal of the 2006 Series BC Gas Bonds are exactly matched. -49- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 7 —13OND INTEREST RATE SWAP AGREEMENTS (CONTINUED) Fair value: As of June 30, 2006, the swaps had a negative fair value of $1,341,639- The fair value was estimated using the zero -coupon method. This method calculates the future net settlement payments required by the swap, assuming that the current forward rates implied by the yield curve correctly anticipate future spot interest rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero. - coupon bonds due on the date ofeach future net settlement on the swap. Credit risk: As the swap's fair value as, of June 30, 2006 is negative, the City does not have credit exposure to the counterparty. Should the City's fair market value become positive, the City would have credit exposure to the COUnterparly equal to the fair value amount. As of June 30, 2006, the swap counterparty, Citibank, N.A. was rated AA by Standard & Poor's and Aal by Moody's Investors Service. To mitigate the potential for credit risk, if the counterparty's credit quality falls Wow (A-/A3), the fair value of (he swap will be fully collateralized by the counterparty with U.S. government securities. Collateral would be posted with a third -party custodian. Interest rare risk: The swap is structured to reduce the City's exposure to interest rate risk. Basis risk: The swap exposes the City to basis risk should the relationship between LIBOR and BMA converge to a ratio higher than variable leg of the swap. Termination risk: The City or the counterparly may terminate the swap if.the other party Fails to perform under the terms of the contract. In addition, the City may optionally terminate the agreement on any date. If at the time of termination the swap has a negative fair value, the City would be liable to the counterparty for an amount equal to the negative fair value. I Swap payments and associated debt: It is expected that the variable payments received by the City on the swap will approximate the variable interest payments on the 2006 Series 9 and Series C Gas Bonds, resulting in the City's net interest exposure being equaled to the fixed payment on the swap to the counterparty. Because [he variable payments on the 2006 Series BC Gas Bonds and the swap are on different bases, some basis differential is expected from time to time. The following summarizes the expected net debt service if BMA remains constant 3.970% and I Month LIBOR remains constant at 5.3344% (actual rates as of June 30, 2006). Year Ending Principal Interest Rate Total June 30 Amount Interest Swap, Net Debt Service 2007 S s 9,164,547 S 684,014 $ 9,848,56F 2008 11,420,000 8,786,73S 655,815 20,862,550 2009 11.930,000 8,316.499 620,719 20,867,206 2010 12,360,000 7.828,642 584,306 20,772.948 2011 12,855,000 7,321.573 546,460 20,723,033 2012-2016 72,795,000 28,238.312 2,107,622 103,140,935 2017-2021 89,345,000 11,980,501 894,188 102.219,689 2022 20.140,000 133,260 9,946 20,283,206 S 230,845,000 S 81.770,057 S 6,103,070 S 318,718.127 -50- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30,2006 NOTE 8— OTHER DERIVATIVE FINANCIAL INSTRUMENTS The City's Light and Power Fund (Fund), which accounts for the maintenance and operations of the City's electric utility plant, enters into contracts for electricity and natural gas to meet the expected needs of its retail customers. The Fund also sells excess electricity capacity during periods when it is not needed to meet its retail requirements. Derivative contracts (futures and options) designated as cash flow hedges are entered into by the Fund to hedge variable price risk associated with the purchase and sale of commodities and extend out to March 30, 2007. At June 30, 2006, [he Fund's derivative contracts totaled $6,109,607 and are recorded at cost in the Fund's Financial statements and are included with other assets. For the year ended June 30, 2006, the City realized a net loss of S3,433,453 on closed derivative contracts. The fair value of the'derivative instruments at June 30, 2006 totaled $937,615. Unrealized gains and losses on (he derivative instruments are not recognized in the accompanying financial statements since the Fund does not apply FASB statements issued after November 1, 1989. NOTE 9 — RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions-, injuries to, employees; natural disasters; unemployment coverage, and providing health benefits to employees, retirees, and their dependents. The City is self -insured for its general liability, workers' compensation, and property liability. The City has chosen to establish risk financing Internal Service Funds, whereby assets are set aside for claim settlements associated with the above risks of loss up to certain limits. The City has obtained various insurance policies that provide coverage for "Special Form Perils" against direct physical loss or damage, including earthquake and flood, to all real and personal property of the City, including equipment, business and'rcvcnuc interruption, errors and omissions, boiler and machinery and pollution legal liability. The earthquake and flood portion of the policies have a 5% deductible of the total insurable values per building, structure or covered item at the time and place of loss. In the most recent "Statement of Values" for the City, real and personal property total insured values equated S293,136,673. Crime (Employee Theft and, Depositors Forgery and Alteration, and Computer and Funds Transfer Fraud) coverage in also in force with a limit $100,000 for each line ofcoverage. The City is self insured for the first $300,000 of workers' compensation claims and for the first S2,000,OW of its general liability coverage. Excess coverage is provided by the Independent Cities Risk Management Authority (the "ICRMA"), a joint powers authority whose purpose is to develop and fund programs of excess insurance for its member cities. The ICRMA is governed by a board of directors consisting of representatives of its member cities. Excess coverage is provided by ICRMA. Self-insurance and ICRMA limits are as follows: Type of Coverage Self-insurance ICRMA General Liability Up to $2,000,000 Not Applicable Workers' Compensation Up to $300,000 S300,000 to S10,000,000 Property Upto$ 10,000 Not Applicable CITY OF VERNON, CALIFORNIA Notesto Basic Financial Statements (Continued) June 30, 2006 NOTE 9 — RISK MANAGEMENT (CONTINUED) Insured limits are: Type of Coverage Limits Excess General Liability $10,000,000 excess' of $2,000,000 (self insured) Excess General Liability $10,000,000 excm of $ 10,000,000 Amounts in excess of these limits are self -insured. There have been no significant reductions of coverage from the prior year. There have been no settlements exceeding insurance coverage For each of the past three fiscal years. The unpaid claims liabilities included in each of the self-insurance Internal Service Funds are based on the results of actuarial studies and third -party administrator claim reports and include amounts for claims incurTed but not reported, including loss adjustment expenses. Claims liabilities are calculated considering the effects of inflation and recent claim settlement trends, including frequency and amount of payouts and other economic and social factors. Changes in the balances of claims liabilities during the past two fiscal years for all self-insurance funds combined are as follows: Claims payable, beginning offiscal year Incurred claims Claims payments Clairris payable, end of fiscal year NOTE 10 —PENSION PLAN Fiscal Year Ended June 30 2006 2005 S 4,992,957 S 5,252,825 2,998,117 409,603 (632,501) (669,471) S 7,358,573 4,992 57 �9 _S The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple -employer retirement system (hat acts as a common investment and administrative agent for participating public entities within the State ofCalirornia. All full-time safety (police and fire personnel) and miscellaneous personnel and temporary or part-time,employces who have worked 1,000 hours in a fiscal year are eligible to participate in the PERS. Benefits vest afler five years of service. Employees who retire at age 50 with five years of credited service are entitled to retirement benefits. Monthly retirement benefits are based on an employee's average compensation for his or her single highest year of compensation for each year ofcrediled service. Miscellaneous members with five years of credited service may retire at age 55 with full benefits based on a beriefit factor derived from the at 55 Miscellaneous Factor" benefit factor table and between age 50 and 54 with reduced retirement benefits. Safety.members may retire at age 50 with full benefits based on a benefit factor derived from the "3% at 50 Safety Factor" for Police Department Employees and 2% at 50 Safety Fac(or" for Fire Department Employees benefit factor table with five years of credited service. The PERS also provides death and disability benefits. These benefit provisions and all other requirements are established by State statute and City ordinance. The City's plan does not issue a stand-alone financial report but is included in the PERS report, which can be obiained from PERS at Lincoln Pim, 400 P Street, Sacramento, California 95814. -52- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 10 — PENSION PLAN (CONTINUED) The S(ale-required City employee salary contributions of 7% for miscellaneous employees and 9% for safety members are subsidized by the City. The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis adopted by the PERS Board of Administration. The City's total contribution to the PERS for the year ended June M, 2006 was $5,792,468. City contribution rates as a percentage of covered payroll were 8.605% for miscellaneous plan members and 25.426% for safety plan members. The City's contribution was made in accordance with actuarially determined requirements based on an actuarial valuation performed as of June 30, 2003. The PERS uses the entry age normal actuarial cost method, which is a projected beriefit cost method that takes into accoun( those benefits expected ' to be earned in the future as well as those already accrued. According to this cost method, the normal cost for an employee is (he level amount (hat would fund the projected benefit if it were paid annually from the date of employment until retirement. The PERS uses a modification of the entry age normal cost method whereby the employer's total normal cost is expressed as a level percentage of payroll. Unfunded liabilities are amortized over a closed, 20-ycar period. Significant actuarial assumptions used in the valuation included (a) a rate of return on the investment of present and future assets of 7.75% a year, compounded annually'; (b) overall payroll growth of 3.25%, compounded annually; and (c) a merit scale varying by duration of employment coupled with an assumed annual inflation growth of 3.00% and an annual production growth of 0.25%. The ac ' tuarial value of assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a 15 year period. I Trend information for the current and two preceding fiscal years is as follows: Percentage Fiscal Year Annual Pension of Ended Cost (A PC) Amount APC Net Pension June 30 Contributed Contributed Obligation 2006 S 5,792,468 S 5,792,468 100% 2005 4,610,702 4,610,702 100% 2004 2,742,685 2,742,685 1000/0 The following schedule represents the required supplemental information for the three most recent actuarial valuations. This schedule provides information about progress made in accumulating sufficient assets to pay benefits when due (dollar amounts in millions) (unaudited): Actuarial Valuation Date June 30 2004 2003 2002 Actuarial Actuarial Unfunded Funded- Annual UAAL Accrued Value of (Overfunded) Ratio Covered (OAAL) As a Liability Assets UAAL Payroll % of Covered (AAL) (OAAL) Payroll (a) M (a)-(b) (bl/(a) W [(a)-(b)1/(c) 180.3 $ 170.5 9.8 94.5% $ 22.0 44.6% 172.2 164.8 7.4 95.7% 21.6 34.1% 161.6 166.3 (4.6) 102.9 19.9 (23.3) -53- H CITY OF VERNON, CALIFORNIA, . Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE I I — LEGAL SETTLEMENT In July 2006, the City settled a dispute over a wholesale power purchase contract with Mirant Americas Energy Marketing, LP C'MAFM") for S15,000,000. This sum shall be paid to MAEM in installments, beginning in August 2006, over 30 months, plus interest at 7% per annum. The controversy arose in connection with the delivery of power under the contract and the filing by MAEM of a petition in bankruptcy court. In November 2006, the City settled a dispute over contract obligations with its former electric distribution system maintenance provider, Resource Management International, Inc. ("RMI"). RMI has paid the sum of'S7,400,000 to the City in order to settle all disputes between the parties. NOTE 12 — DEFICITS IN FUND EQUITY The Gas Enterprise Fund has negative net assets of S6,525,211 at June 30, 2006, which will be recovered from future operating revenues from customers. The Equipment Replacement I ntemal Service Fund has negative net assets of S149,8 48 at June 30, 2006.. To the extent such dcfici( is attributed to shortfalls in charges to other funds, such deficit will be recovered through future rate increases. A deficit arising from decreases in fair value of pooled investments will not be recovered through charges to other funds. NOTE 13 — EXCESS OF EXPENDITURES OVER APPROPRIATIONS For the current year, the City's excess expenditures over appropriations in the general government were $6,339,06 1. However, these excess expenditures over appropriations were offset by the under expenditures of S3,615,057 in public safety and $3,205,155 in public works. The City's excess expenditures over appropriations for capital outlay were $7,274,739. These expenditures were incurred by the City in its current industrial development programs and were funded by available fund balance in the general fund. NOTE 14 — LIGHT AND POWER OPERATIONS AND COMMITMENTS Derggulation Effective April 1, 1998, competition was introduced into California's electric utility market, and customers of the stale's investor -owned utilities (IOUs) became eligible for direct access. The, implementation of competition in accordance with State Assembly Bill 1890 (AB 1890) resulted in significant structural changes to the electric power industry, including mandated direct access for IOU customers, energy sales through the California Power Exchange ("CPX"), and management of transmission assets through an Independent System Operator (ISO). AB 1890 also legislated the recovery of stranded investment through the assessment of a non -by passable competition transition change (CTC). The original deregulation legislation applied to the State's IOUs and did not compel participation by publicly owned utilities, such as the City's electric utility, During the fiscal year 2001, [he City made sales of energy to CPX. CPX made minimal payments on these sales and filed for protection under Chapter I I of the Federal Bankruptcy Statue in January 200 1. As of June 30, 2006 a total of $3,061,069 was due the City from CPX. The City has recorded a S 1,000,000 reserve for uncollectible accounts against this $3,061,069 receivable at June 30, 2006. ParliciDatine Transmission Owner On August 30, 2000, the City filed a.petition for declaratory order with the Federal Energy Regulatory Commission (FERC) requesting a determination by the FERC that the City's Transmission Revenue Requirement (TRR), as approved by its rate setting body, the City Council, is proper for purposes of the City becoming a Participating Transmission Owner (PTO) in [he California ISO. The FERC issued its order accepting the City's petition, with certain modification, on October 27, 2000. C6r1ain aspects of the FFRC order were challenged by some of the State's other PTOs. Recently, a federal appeals court ruled that the way the FERC arrived at its decision was improper and remanded the case back to the FERC for further proceedings. The City's expected outcome of these proceedings is discussed in Note 15, As a PTO, the City has turned over operational control of its transmission entitlements to the ISO effective January 1, 2001 and shall be reimbursed based upon its TRR by the ISO through the ISO's collection ofa transmission access charge (TAC). -54- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30,2006 NOTE 14 — LIGHT AND POWER OPERATIONS AND COMMITMENTS (CONTINUED) On December 21, 2000, the.]SO filed, on behalf of itself and the Participating Transmission Owners (PTO), a number of changes to its Transmission Control Agreement (TCA) to recognize Vernon's application to become a Participating Transmission Owner. The ISO also filed revisions to identify the transmission interests that the City will be turning over to the ISO's operational control and the inclusion of an explicit contract provision to ensure that all PTOs, including an entity such as the City, which is not subject to the rate, jurisdiction or refund jurisdiction of FERC tinder section 205 and 206 of the Fedeml Power Act (FPA), make appropriate refunds or payment adjustments to implement any relevant FERC order Project Couirminnents A. Southern California Public Power Authority In 1980, the City entered into a joint powers agreement with nine (9) Southern California cities and an irfigation district to form the Southern California Public Power Authority (the "Authority"). The Authority's purpose is the planning, financing, acquiring, constructing and operating of projects that generate or transmit electric energy. The Authority purchased a 5.91% interest in the Palo Verde Nuclear Generating Station (the "Station"), a nuclear -fired generating station near Phoenix, Arizona, from the Salt River Project Agricultural Improvement and Power District, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System. The City has a 4.9% entitlement share of the Authority's interest in the station. Between 1983 and 2002, the Authority issued $3.166 billion of Power Project Revenue Bonds to finance the purchase of the Authority's share of the Station and related transmission rights. The bonds are not obligations ofany member of the Authority or public agency other than the Authority. Under a power sales contract with the Authofity, the City is obligated on a "take or pay" basis for its proportionate share of power generated, as well as to make payments for its proportionate share of the operating and maintenance expenses of the Station, debt service on the bonds and any other debt, whether or not the project or any part thereof or its output is suspended, reduced or terminated. The City's proportionate share of costs during fiscal year 2606 was $2,300,256. B. Hoover Dam Power Plant Upgrade Program In January 1987, the City entered into a contract with the Federal Bureau of Reclamation to fund part ofan upgrading program of the Hoover Dam power plant to increase the plant's generating capacity. In exchange, the City will receive its pro rata share of the additional power produced. Total program costs are estimated to be $155 million. I As of June 30, 2006, the- City's total advances were $6,736,123 for the upgrading program. At June 30, 2006, the outstanding note receivable wa--; S4,113,95 1. The City has no obligation to advance funds in the future. The note is bei ' ng repaid with interest over a period of.30 years. The City must also make payments fior its pro rata share ofoperating and maintenance costs not recovered by the plant through revenues. The amount paid during the current year for purchased power was reduced by principal and interest amounts totaling $489,356 due the City on the outstanding note receivable., The contract expires in June 2017. C. Call fo rn ia-Oregon Transmission Project In 1991 the City entered into the Interim - Participation Agreement with several Northern California entities and the WcstemArea Power Administration. This agreementcalls for the construction and operation ofthe project. Each party in the agreement has been allocated a respective share of the construction costs. The City's share is 8.05%. As ofJune 30, 2006, the City's share oftotal costs incurred for the project's planning and construction was S37,3 16,527. -55- 4 CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 14 — LIGHT AND POWER OPERATIONS AND COMMITMENTS (CONTINUED) Power Purchase Commitments As of June 30, 2006, the City has entered into long-term commitments to purchase power subject to certain conditions. The following table summarizes the value ofthe commitments at June 30, 2006 (in thousands): Fiscal Year Amount 2066-07 $ 14,091 2007-08 14,091 2009-09 10,358 2009-10 6,600 2010-11 3,311 $ 48,451 Electric Rate Increase Effective November 1, 2006, the City increased its electric rates 5% charged for electrical energy distributed and supplied by the City within its boundaries. NOTE 15 — POST-EM PLOYM ENT BENEFITS The City Council approved a post-employmcnt benefit plan for all employees with 20 years of service who retire at 60 or 30 years or more of service to the City. The plan pays for qualified employees' medical and dental insurance premiums and claims from age 60 to 65. Funding of the plan is on a pay-as-you-go basis. During the year ended June 30, 2006, approximately 105 (including HMO and PPO participants, City paid and non -City paid) employees were eligible to receive bcnefits. Amounts paid for premiums for the year ended June 30, 2006 totaled 5161,421. NOTE 16 —CONTINGENCIES A( June 30, 2006, a number of lawsuits and claims, were pending against the City that arose in. (he normal course of operations. Management estimates that certain pending lawsuits and claims may result in additional liabilities of approximately $500,000. The City is currently in proceedings with the FERC and certain other utilities and agencies regarding the appropriate Trdnsmission Revenue Requirement ('71111") for the City. The City is currently receiving revenue from the ISO based on a TRR of approximately S 10.6 million annually. In addition, the City is involved in litigation over the market price charged by the City ror certain electric energy, sales made during the period October 2, 2000 through ,June 20, 200 1. FERC has ordered reductions in certain of the market prices for electric energy during that period, and the legitimacy of that order and its impact on entities such as the City is being litigatcd before the United States Court of Appeals and other courts. The City cannot predict the outcome of either of these proceedings, but it is possible that those outcomes could affect the level of the City's TRR and/or cause'the City to be subject to one or more refund obligations. The ultimate loss related to these matters, if any, is unknown at this time and no amount has been accrued in the accompanying financial statements. -56- CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) Jun!e�30,2006 NOTE 17 — FUTURE GASB PRONOUNCEMENTS The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements: In April 2004, GASB issued Statement No. 43, Financial Reporfingfor Postemployment Benefit Plans Other Than Pension Plans. This statement establishes uniform financial reporting standards for other poslemployment benefits (OPEB) plans. The approach followed in this statement generally is consistent with the approach adopted for defined benefit pension plans with modificafions to reflect differences between pension plans and OPEB plans. The statement applies for OPEB trust funds included in the financial reports of plan sponsors or employers, as well as for the stand-alone financial reports of OPEB plans or the public employee retirement systems, or other third parties, that administer them. This statement also provides requirements lbr reporting of OPEB funds by administrators of mulliple-employer OPE9 plans, when (he fund used to accumulate assets and pay beriefis or premiums when due is not a trust fund. This statement is effective for the City's fiscal year ending June 30, 2007. In June 2004, GASB issued Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, which addresses how state and local governments should account for and report their costs and obligations related to postemployment healthcare and other nonpension benefits. Collectively, these benefits are commonly referred to as other postemployment benefits, or OPEB. The statement generally requires that employers' account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions. Annual OPEB cost for most employers will be based on actuarially determined amounts that, ifpaid on an ongoing basis, generally would provide sufficient resources to pay benefits as they come due. This statement's provisions may be applied prospectively and do not require governments to fund their OPEB plans. An �mployer may establish its OPE13 liability at zero as of the beginning of the initial year ofimplementation; however, the unfunded actuarial liability'is required to be amortized over future periods. This statement also establishes disclosure requirements for information about the plans in which an employer participates, the funding policy followed, the actuarial valuation process and assumptions, and, for certain employers, the extent to which the plan has been funded over time. This statement is effective for the City's fiscal year ending June 30, 2008. In June 2005, GASB issued Statement No. 47, Accounting for Termination Benefits. This statement provides guidance to governmental employers for measuring, recognizing, and reporting liabiliti�s and expense/expenditures related to all termina(ion benefits, including voluntary termination benefits, without limitation as to the period of time during which the benefits are offered, and involuntary termination benefits. The requirements of this Statement are effective in two parts. For termination benefits provided through an existing defined benefit OPEB plan, the provisions should be implemented simultaneously with GASB Statement No. 45. For all other termination benefits, this Statement is effective for fiscal periods beginning after June 15, 2005. There was no impact on the financial statements for the fiscal year ended June 30, 2006, as a result of implementing this Statement. In September 2006, GASB issued Statement No. 49, Sales and Pledges of Receivables and Future Revenues and Intro -Entity Transfers ofAssels and Future Revenues. This Statement establishes criteria that governments will use to ascertain whether the proceeds received should be reported as revenue or as a liability and provides additional guidance for sales of receivables and future revenues within the same financial reporting entity. This Statement includes a provision that stipulates that governments should not revalue assets that are transfierTed between Financial reporting entity components. This Statement also includes guidance to be used for recognizing other assets and liabilities arising from a sale of specific receivables or future revenues, including residual interests and recourse provisions. The disclosures pertaining to future revenues that have been pledged or sold are intended to provide financial statement users with information about which revenues will be unavailable for other purposes and how long they will continue to be so. This Statement is effective for the City's fiscal year ending June 30, 2008. -57- El CITY OF VERNON, CALIFORNIA Notes to Basic Financial Statements (Continued) June 30, 2006 NOTE 17 — FUTURE GASB PRONOUNCEMENTS (CONTINUED) In December 2006, GAS B issued Statement No. 49, Accounting and Financial Reportingfor Pollution Remediation Obligations. This statement requires state and local governmems to provide the public with better information about the financial impact of environmental cleanup and identifies thecircurnstances under which a governmental entity would be required to report a liability related to pollution remediation and how to measure that liability. The statement also requires governments to disclose information about their pollution obligations associated with clean up efforts in the notes to the financial statements. GASB Statement No. 49 will be effective for financial statements for periods beginning allcr December 15, 2007, but liabilities will be measured at the beginning of that period so (hat beginning net assets can be restated. The City has not determined (he impact on the City of the adoption of these statements, - 58- REQUIRED SUPPLEMENTARY tNFORMATION I CITY OF VERNON, CALIFORNIA Rcquirtd Supplementary Information Budgetary Compaiison Schedule General Fund For the Fiscal Year Ended June 30, 2006 Variarxe with Firml Bodo Budoed Ai—ts Aetut Pwitive Original Final Arnouras (Negative) REVENUES: T.x� S 10,10Rwo S 10.10B.600 S 8,943�66a S (1,164,932) Spe,ci.] gslrnems 650,000 650,000 736.221 86.221 Licensts.nd penni. 1.223.0nD 1,225,000 1.161,188 (63,812) Fine& ficrftinr— —1 p—hin 267,01)(1 267.000 188,988 (78,012) Rcvcou� frorn we ofatunies and properties' - 1.725,347 1,725,347 Net decrease in fair value ofinvcslr�ents (24,546) (24,546) wergovernnie.1.1 rev,n— 290.04 290,414 Cl.rges for services 9.000.GOD 9.000000 9,674,0-17 (325.92.3) Other reverrue� i,5S2,680 I.S57,690 697,754 (955,426) Toml reven.. 22-803.2.80 22,803.280 22�392.61 1 (410,669) EXPENDITURES: General go —cm 10,229.382 10.229,382 16,367,443 (6.339,061) Public 22,272.747 22,272,747 19,657,690 3,615,057 roblieworks 8,215.342 9,215�412 5,010.187 3.205.155 Health rvices 1,5W509 1.509,509 1,246,963 262,546 Capital -day 4,229,441 4,229,441 11.504.190 (1.274,739) Tom[ expendilum -16,456,421 46,456,421 52.986,463 (6,330.042) Deficleney of me— under cxpendlw� 123,653.141) (23.653,141) (30,593,852) (6,940.711) Other fi�ing sources: Timnsren, in I (out) 8,320.505 8.320,505 (21,491.619) (29.812.124) Net h..Se $ (W32,6MI S H"32.06) Rr�666- fGAAP bmn fund b-I.a Current year e—rnb�. 81.1.531 812,531 NET CHANGE IN FUND BALANCE (51.272.940) (35,940304) FUND BALANCE. BEGINN114G OF YEAR 72,233,702 82.900.733 FUND BALANCE, END OF YEAR S 20.960,762 5 46.960.429 See accumpanying note to ibe required supplernentary infornotion. -59. CITY OF VERNON, CALIFORNIA Notes to Required Supplementary Information June 30, 2006 NOTE I — BUDGET The City adheres to the following general procedures in establishing its annual budget, which is reflected in the accompanying General fund budgetary comparison schedule. An annual budget is adopted by the City Council that provides for the general operation of the City. The budget includes authorized expenditures and estimated revenues of the General Fund, Special Revenue Funds and Capital Projects Funds; The budget is formally integrated into the accounting system and employed as a management control device during the year, Encumbrances, which are commitments related to executory contracts for goods and smices, are recorded to assure effective budgetary control and accountability; Encumbrances outstanding at year-end do not constitute expenditures or liabilities under GAAP. Encumbrances outstanding at year-end are reported iis reservations of fund balance for subsequent year expenditures. Unencumbered appropriations lapse at year-end-, The budget is adopted on a modified accrual basis, except that encumbrances are treated as budgetary basis expenditures in the year of incurrence of the commitment to purchase; The City Administrator is authorized to transfer appropriations between activities within any fund. Expenditures may not exceed appropriations at the fund level. Excess expenditures over appropriations arc financed by beginning fund balances. The final budgeted amounts used in the accompanying general fund budgetary comparison schedule include any amendments made during fiscal year,2006. Encumbrances carried forward from the prior year are reflected in the original budget. -60- a] None. Schedule 5.1(f) Affiliated Transactions 5.1(0-1 None. Section 5.1(g) Litigation 5.1(g)-1 None. Section jjj!� Tax Liabilities 5.1(h)-1 Schedule 5.2(a)(1) Compliance with Governmental. Rules and Permits None. 5.2(a)(l)- I Schedule 5.2(a)(2) Environmental Legal Compliance 'rhe Historical Recognized Environmental Conditions set forth in the Phase I Report. The area surrounding the Facility Site, and the Facility Site itself, has a very long history of industrial operations, potential Releases from which may have affected (or may affect in the future) the Facility Site. 2. Seller will obtain any variance or stipulated order of abatement from the South Coast Air Quality Management District required in connection with the start-up and/or testing of the Facility after the repairs associated with the outage described in Section 5.2(m). 5.2(a)(2)-1 None. Schedule 5.2(bl Zoning and Land Use 5.2(b)-1 2 None. Schedule 5,4!�j Condemnation and Other Proceedings; Outstanding Collateral 5.2(c)-1 Schedule 5.2(e) Sufficiency of Assets 1 Spare Parts — Any spare parts consumed in the ordinary course between the date of the Agreement and the Closing. 2. Insurance policies — Except to the extent respecting the rights and claims made after the date of the Agreement as set forth in the Agreement. 3. Annually renewable emission rights credits need to be renewed and are only valid for the period set forth therein 4. With respect to the first sentence of Section 5.2(e), all matters described in Schedule 5.2(m). 5. With respect to the last sentence of Section 5.2(e), all matters described in Schedule 2.2 (o). 5.2(e)-1 Schedule 5.2(f) Facility Contracts 1. Services Agreement between Vernon and NALCO Company, dated September 5, 2006 2. Services Agreement between Vernon and Thomason Mechanical Corporation, dated March, 2006 3. First Amendment to Services Agreement between Vernon and Thomason Mechanical Corporation, dated July, 2006 4. Second Amendment to Services Agreement between Vernon and Wood Group Field Services, Inc. (FKA Thomason Mechanical Corporation), dated October 4, 2006 5. Ammonia Delivery Purchase Contract between Vernon and Hill Brothers Chemical Company dated December 3, 2004 6. Amendment to Ammonia Delivery Purchase Contract between Vernon and Hill Brothers Chemical Company dated August 28, 2006 7. Services Agreement for the Malburg Generating Station, MP Contract Number I I -COV-06, dated as of September 25, 2007, between Siemens Demag Delaval Turbomachinery, Inc. and the City of Vernon 8. Such agreements as Seller may enter into to perform its obligations under Section 7.11 5.2(f)-1 Schedule 5.2(i) Taxes None. f 5.2(i)-1 Schedule 5.20) Seller's Employees Facility Contract Employees I . Michael Bonfiglio Power Plant Manager 12. Ken Moe Power Plant O&M Manager 3. Laura Noguera. Power Plant Operations, Compliance Manager 4. Dave Richards Power Plant Operator 5. Matthew Richards Power Plant Operations 6. Jeff Smith Power Plant Lead Operations 7. Yolanda Taylor Power Plant Clerical 8. Mark Thompson Manager, Power Plant Operations 9. Serafin Tinoco Power Plant Operations Facility Direct Employees: I . Rudy Valdez 2. Adriano Marki 3. Sal Delgadio 4. Jesse Palomarez 5. Erik Knutson 6. Rich Recano Power Plant Operations DCS / I&C Electrical Outside Operator Plant Engineer Warehouseman 5.20)-1 Schedule 5.2(k) Absence of Changes I . All matters described in Schedule 5.2(m . 5.2(k)- I None. Schedule 5.20) Insurance 5.2(l)-1 Schedule 5.2(m) September 27, 2007 Outage On September 27, 2007, Unit I at the Facility suffered an unscheduled outage (the "Outage"). All power turbine blades and guide vanes in Unit I have been severely damaged or are missing. After the Outage, Unit 2 at the Facility was shut down as a precautionary measure per instructions from the OEM (Siemens). 5.2(m)- I EI Schedule 5.3 Hoover Interest None.' 5.3-1 Schedule 5.3(b) Hoover Contracts Contract for Electric Service between United States Department of Energy, Western Area Power Administration, Boulder Canyon Project and Vernon, dated January 6, 1987 5.3 (b)- I El None. Schedule 5.3(c) CFD (Hoover) Consents, Approvals and Notices 5.5(c)-1 None. LI Schedule 6.1(d) Purchaser's Required Consents, Approvals and Notices 6. 1 (d)- I Schedule 8.6 Substitute Collateral 8.6-1 Issuing Bank Leff erhead Address, Date: [ )2007 Irrevocable Standby Letter of Credit Number: Beneficiary: City of Vernon Applicant: [address] Address: [Advising Bank, if applicable] [Confirming Bank, if applicable] Amount: USD: $17,000,000 US Dollars: Seventeen Million Dollars We hereby issue our Irrevocable Standby Letter of Credit at this office in your favor for the account of [insert the appropriate party: ("Account Party") and at the request of the Account Party by sight payment against the following documents: 1. Your sight draft drawn on us marked "drawn under [Issuing Bank] [Letter of Credit Number] dated [Date]"; AND 2. Beneficiary's signed statement certifying as follows: "Account Party and/or Bicent (California) Power LLC (f/k/a Beowulf (Vernon) Power LLC) ("Bicent Califoriiia") has failed to close the transactions under the Purchase and Sale Agreement (the "PSA"), dated as of October 8, 2007, as amended as of December _, 2007, between City of Vernon, as Seller, and Bicent California, as Purchaser in breach of the PSA." The Expiration Date shall be the earlier of: (i) March 31, 2008; and (ii) the date on which the Beneficiary returns the original of this Letter of Credit or any replacement letter of credit, as applicable, to the Account Party. Special Conditions: I . Partial drawing(s) are permitted. 2. All banking charges associated with this Letter of Credit are for the account of the Account Party. 3. Documents are to be presented to this office no later than the Expiration Date. 4. This Letter of Credit is not transferable. We hereby engage with you that draft(s) drawn under and in compliance with the terms of this Letter of Credit will be duly honored if drawn and presented for payment at any time before the LA\1806194.3 W1 close of business [Time] at our counters located at (address] on or before the Expiration Date or in the event of Force Majeure, as defined under Article 17 of the Uniform Customs and Practice for Documentary Credits (1993 Revision) International Chamber of Commerce Publication No. 500 ("UCP"), interrupting our business, within fifteen (15) days after resumption of our business whichever is later. Except as otherwise stated herein, this credit is subject to the UCP and, with respect to matters not so covered, this Letter of Credit is subject to and governed by the laws of the State of New York. If you have any questions regarding this Letter of Credit, please call [Telephone No.]. By: Authorized Signature Name: Title: LA\1806194.3