HomeMy WebLinkAbout800820.tiff --.
RESOLUTION
RE: ACCEPT LOW BID OF INTERWEST COMMUNICATIONS CORPORATION CON-
CERNING COMMUNICATIONS SYSTEM FOR THE WALTON BUILDING
WHEREAS, the Board of County Commissioners of Weld County,
Colorado, pursuant to Colorado statute and the Weld County Home
Rule Charter, is vested with the authority of administering the
affairs of Weld County, Colorado, and
WHEREAS, on February 4 , 1980, the Board of County Commis-
sioners authorized the Weld County Purchasing Department to
issue requests for proposals concerning a communications system
for the Walton Building, and
WHEREAS, on March 10, 1980 , the Board appointed an evalua-
tion committee to review said proposals , and
WHEREAS, said evaluation committee has recommended that the
low bid of Interwest Communications Corporation be accepted pro-
vided the contract is written in such a manner to meet state and
federal regulations for reimbursement.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the low bid of Inter-
west Communications Corporation concerning the communications
system for the Walton Building be, and hereby is , accepted pro-
vided that contract is written in such a manner to meet state
and federal regulations for reimbursement.
The above and foregoing Resolution was , on motion duly made
and seconded, adopted by the following vote on the 26th day of
March, A.D. , 1980.
j} •._, BOARD OF COUNTY COMMISSIONERS
ATTEST: of i7 , -40,,,, ,,.. WELD COUNTY, COLORADO
ij
Weld County Clerk and Recorder A ///r , c� " (Aye)
an k to the B a C. W. Kirby, 1hairman
B : d ,, ,, ,17/(k
c l�wh ` uvta cQ 1�eE (Aye)
putt' Count lerk onard L. Roe, rm
//// -,APPDTOC _ FO : (Aye)
NO Norman Carlson
County Attorney o j ,�°e��, 4 JeAye)
dia unbar
Arl2(2 /72- 7,0,11AYe)
ne K. t inmark
800820
DATE PRESENTED: APRIL 2 , 1980
L
" s Interwest 1 '
communications
INSTALLATION AGREEMENT
s THIS AGREEMENT made between INTERWEST COMMUNICATIONS, CORP., A Colorado corporation, with its principal office
at 1450 Grove Street, Denver, Colorado 80204, (hereinafter referred to as "Interwest") and
'Th- unty Colorado Dept. of Social Services
(hereinafter referred to as "Customer").
In consideration of the mutual agreements herein contained, Interwest agrees to sell to Customer,and Customer agrees to purchase
from Interwest (unless Customer elects to exercise the lease option below) a Communications System in accordance with the following
terms and conditions:
1. Interwest shall deliver and install on the Customer's premises at
1:- T . 11th Avenue — Greelwy, Colorado
(hereinafter referred to as "Premises") the following equipment (being hereinafter referred to as "Equipment" or "System"),and as
further described in Schedule 1 attached hereto.
PABX: LINES: TRUNKS:
ICM: LINES:
STATION EQUIPMENT: QUANTITY TYPE
FEATURES PROVIDED: SEE SCHEDULE 1
ESTIMATED INSTALLATION DATE: 19
2. Customer shall purchase the Equipment or shall exercise its option to lease the Equipment as follows:
O (a) PURCHASE - Customer shall purchase the System from Interwest and shall pay to Interwest for the System a purchase price
of$ ' - 'n c) , (the "Purchase Price") plus all applicable taxes.
' t
.(i) $ on the execution of this agreement;
(ii) $722
1 1' on , 19 ,or when Customer is notified in writing that the Equipment is delivered
to the Premises,whichever is first;and,
(iii) the balance due on the Installation Date (as such term is defined in paragraph 4 hereof);or
(b) LEASE OPTION - Customer shall enter into a binding agreement with a leasing company or other financial institution (herein-
after referred to as"Lessor) atjs1facto5y to Interwest, providing for a lease of the Equipment by Customer from Lessor fore
_months
at a monthly rental of $• ' - '—' plus applicable taxes under the terms set forth in Lessor's standard lease. Interwest will
cooperate with Customer in arranging for such lease. Customer shall deposit with Interwest an amount equal to monthly rentals
of $ , and, upon the effective date of such lease, Interwest will credit to the Customer's account with Lessor all
deposits paid under the terms of this Agreement. Interwest shall not be required to commence the installation of the System until it
has received a copy of such lease executed by the Customer and Lessor and the estimated installation date specified herein shall be
extended accordingly.
(c) CONVERTIBILITY TERMS - Customer may elect during the 10 day period after the date hereof to convert his purchase
of the System into a lease as provided by paragraph 2(b) hereof. The amount previously paid by Customer to Interwest under para-
graph 2(a) hereof shall be credited to Customer's account with Lessor to the extent deposits are required under such lease and the
balance of such amount, if any,shall be prompt) remitted to Customer.
Similarly, Customer may elect during the 1X day period after the date hereof to convert his lease of the System into a purchase
of the System as provided in paragraph 2(a) hereof, in which event Customer shall deposit with Interwest % of the Purchase
Price with the balance due on the Installation Date as provided in paragraph 2(a) hereof.
3. This Agreement consists of the foregoing AND THE REVERSE SIDE HEREOF and sets forth the entire agreement and under-
standing between Interwest and Customer. Customer,having carefully read all provisions of this Agreement,acknowledges receipt of a
copy of this Agreement which is the final expression of the Agreement of the parties,and the complete and exclusive statement of the
terms agreed upon, all prior agreements and understandings being merged herein, and that there are no representations, warranties,
or stipulations,either oral or written,not herein contained.
Effective Date of Agreement: gyp , 191
CCEPTED:
CUSTOMER: INTERWEST COMMUNICATIONS, CORP.
-
By:
t� t Commissioners rddsofnWel
Title- `t'io Title -
• interwest ""wN `
communications
corporation
SCHEDULE 1
TO INSTALLATION AGREEMENT NO. 1837
STATION EQUIPMENT
QUANTITY TYPE QUANTITY TYPE
1 oach ITT TD-250 Wired and Equipped as follows:
Equipped Wired Capacity
Lines 104 256 512
Trunks 16 64 128
Consoles 1 3 5
2 each 5 line Touch Tone telephones
93 each 1 line Touch Tone telephones
9I
DESCRIPTION OF SERVICE FEATURES
Touch Tone Operator Recall
Toll Restriction Call Offering
Camp On Call Queue
Call Pick Up Call Back
Call Farwaird4.ng
Call Transfer
Igo Not Disturb
Universal Night Answer
A'id On Con ference
' xecutive Priority
This Schedule is executed and delivered in accordance with the above referenced Installation Agreement between Customer and
Interwest Communications Corporation and this Schedule.hereby becomes a part of such Agreement.
CUSTOMER: tNTE1WEST COMMUNICATIONS CORPORATION
r ,l -sue•/' 'j
By: • i • By: -+
4 'lairman, '_?:a ,7" of Weld
County Cot .:;sioners Title:
Title: _
GATE: `�-
'/Y1
Interweat
communications -"
corporation MAINTENANCE AGREEMENT
' SERVICE CENTER
INTERWEST COMMUNICATIONS CORP.(I.W.C.) 1837
AGREEMENT NO.:
ADDRESS 1450 Grove Street TERM: 1 Year
CITY Denver STATE Colorado Zip 80204 EFFECTIVE DATE: Cut Over.
TELEPHONE (303) 534-3448 MONTHLY CHARGE: $ 213. 75
(APPLICABLE TAXES;IF ANY,WILL BE ADDED)
CUSTOMER INSTALLATION LOCATION (IF DIFFERENT)
COMPANY Weld County Colorado COMPANY Same
Office of Social Services
ADDRESS 315 N. 11th Avenue ADDRESS
CITY Greeley STATE Colo Zip 8061.3 CITY, 1 STATE ZIP
,''i''''Me , ,. . 5, . ,-..r.fl+ta,,,`Wri. ..vh xrm,., -.._., n. s� ,.E ;a
� �11�!4,�. Iaj ' .. ..,, c �y ..
1. MAINTENANCE SERVICES:
(a)Pursuant to the terms and conditions of this Agreement, IWC shall provide the Customer during the term of this Agreement
and with respect to the Equipment described in Schedule A, System Equipment Summary,the services summarized as follows:
(i) Remedial maintenance services upon request by the Customer in order to restore malfunctioning operating component
parts of the Equipment to proper working order.
(ii) Priority response to Customer request for remedial maintenance and/or service work over other types of IWC service
arrangements.
(iii) Continued Operator and Station User training assistance.
(iv) Continued consultation on Equipment requirements.
(b)IWC's remedial maintenance response objectives are as follows:
(i) With respect to a Major Malfunction of the Equipment (defined as no incoming or outgoing telephone service, or no
station to station service within Customer's system), IWC's policy is to respond to the Customer's premises within-twice, c:
( 3) 23 hours from the time IWC first receives the Customer's request for Remedial Maintenance and will complete such
repairs as soon as reasonably practicable.
(ii) With respect to a Minor Malfunction (any malfunction other than a Major Malfunction) of the Equipment, IWC's policy
is to respond to Customer premises between the hours of 8:00 A.M. and 5:00 P.M., Monday through Friday, excluding
holidays within twenty-four (24) hours from the time IWC first receives the Customer's request for Remedial Maintenance
and will complete such repairs as soon as reasonably practicable. Routine remedial maintenance requested after normal
working hours will be billed to the Customer at the prevailing overtime hourly rate with a minimum two (2) hours'service
charge.
(c)IWC's responsibility with respect to the Maintenance Services shall be limited to either the Customer's side of the interconnect
devices connecting the Equipment to the telephone system operated by the local telephone utility, or if no such interconnect
devices exist,to the Customer's side of the point of connection between the Equipment and said local telephone system.
(d)The Customer shall allow employees of IWC free access to premises and facilities where the Equipment is to be maintained at
all hours consistent with the requirements of this Agreement.
(e)Any maintenance or service work performed on the Equipment by others during the period of this Agreement without written
consent of IWC shall cause this Agreement to become null and void.
CUSTOMER ACKNOWLEDGES THAT HE HAS READ ALL OF THE PROVISIONS OF THIS AGREEMENT INCLUDING THOSE ON THE RE-
VERSE SIDE HEREOF. THIS AGREEMENT CONSTITUTES THE COMPLETE AND EXCLUSIVE STATEMENT OF THE TERMS AND CONDI-
TIONS AGREED UPON. THERE ARE NO REPRESENTATIONS,WARRANTIES,OR STIPULATIONS,WRITTEN OR ORAL, NOT HEREIN CON-
TAINED. NO MODIFICATION OF THIS AGREEMENT MAY BE MADE EXCEPT BY A WRITING EXECUTED BY AN OFFICER OF IWC.THIS
J"'\AGREEMENT SHALL NOT BE EFFECTIVE UNTIL SIGNED BY AN OFFICER OF IWC.
CUSTOMER: INTERWEST COMMUNICATION RP
BY: cc /f/ t� BY -"2 ; r.: ,--"( /
Countyub,P sionerseld 4/29/80 %'/'i F iJ
Title: Date: Title: - - -j Date:
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; .'ir- To 8oaxd ob County Commi�ssLone2s Date 3/18/80
l__ c;;(_ iy - Don [Uaxden, Ditecton o5 Finance
COLORADO From EZmen H. Reynolds, Communications D.ikeeton
Subject: In.tenweot Communications Copp. , Communication Pnoposa2 box. Social Svc
Reoeanch has been conducted with cunkent tams ob Intenoest Communications Systems
bon .the pwcpose ob deteAmini.ng quality o6 maintenance, service and the time bacton
involved. In contacting Live such agencies the bo.11.owLng £nbonmatLon was obtained:
1. Two systems in s ekv.Lce two weeks on Less.
a. Newcomb Government SecwLLtie,&, Font Collins
b. Sc-Lentech Inc. , Bouldet
Agencies axe wp/P pteasedwLthaystem thus Lax, but have had no expaLence with any .
maintenance neapanse. PP.Lon ne,eaxch by these agencies nevof:led no denogatony
inflonmatLoa negandi.ng service.
2. Thaee systems .in service, one to two years.
a. RTD, (Regional TnanaponxatLon DLet'tLct) , Boutdex and Longmont Bxanchea.
b. Alameda National Bank, Lakewood
c. Cobe LaboxatoxLes, Lakewood and Arvada
Alt system uoens in this group again xeven-Ped satisfiactLon with equipment opexation
and the sexv.Lce portion ob the systems. Indications ob vexy Sew maintenance pnobtems,
and service nespons es anon e, but all We wet within the range o b maximums stated,
Le; Lakewood and Arvada within the howc ob_ notLLLeatton and Boulder and Longmont
within 1 to 11/2 hours. Discussion with tack xephesentatLves, also pointed out that no
major down time has been experienced during theik association with the system. SexvLce
technicians- ate dispatched dixectzy bnom Intetweat Communications Corp. (Denvex)
SUMMARY:
Contacts ob users hanged £nom the smfPPex systems (28 eYte.5Lons) to the .taxgen companies
such as RTD to determine any abnonma.itLes in service neaponse. No such pxob.Lems swcbaced.
Regaads, JO [/
/
mex H. "Bud"EP Reynolds, DiAecton
Weld County Communications Centck
EHR:dkk.
•
WELD COUNTY DEPARDE,IT OF SOCIAL SERVICES
SOME FINANCING OPTIONS -
ASSUMES COUNTY WISHES TO CHANGE PHONE SYSTEM
The Colorado State Department of Social Services reimburses County Departments
for certain administrative expenses at the rate of 80%. These expenses must
remain within annual allocation according to expense groupings, i.e. , "Operation"
costs, "Equipment," etc. Expenditures that exceed these allocations are not re-
imbursed.
Monthly expenditures to use or lease phone equipment are considered "operating"
costs and are reimbursed. The outright purchase of phone equipment is reim-
bursable within the "Equipment" allocation. However, the annual allocation ($6,000)
for this expense is totally inadequate compared with the cost of phone equipment.
The Colorado State Department of Social Services encourages lease/purchase agree-
ments but will not reimburse specified interest costs on installment payments.
The State does not have, at the moment, a clear policy regarding other financial
agreements that consider discounts, delayed payments, etc. , where title passes
to the county at a later time.
The following provides information about the county's share of cost for current
and proposed:
Monthly�_ Annual Cost Ownership of
Cost Total County Share System_
Current - :fountain Bell* $1,407 $16,884s 377
No
. Mountain Bell Dimension System 3,123 37,476 7,495 No
Proposed - Lease/Purchase Alternatives
•
. Straight lease from County General
•
Fund - 5 years; County buys
equipment** (Interwest) 838 10,056 2,011
Yes
. DSS Lease/Purchase over 60
months*** (Lnterwest) 1,132 13,584 5,539
Yes
. Other?
The above proposed costs reflect an updated system with capacity for growth if needed.
Costs do not reflect Bell system costs for WATS, "Denver Line," and other toll charges.
*Substantial
a bsto ticharate.e increae expected on present system. Excludes WATS, "Denver Line,"
**County purchases equipment at $50,290. Leases back to County Department of Social
Services over 60 months, straight line.
***$1,132 per month x 60 months = $67,920. ($50,290 + $17,600 interest = $67,920.)
State reimburses 80% on $838 x 12 = $10,056. (County contribution: $2,011 + 53 520.)
1sttttsr"
3/7/n
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•
FINANCE - ADMINISTRATION 3617 5.392.36
5.392.37
5.392.36 TREATMENT OF FIXED ASSETS ACQUIRED THROUGH LEASE/PURCHASE AGREEMENTS..
Added As payments are made on the agreement, they are recorded on the 5360
eff. payroll as Rental of Equi,pmen Object..Code 221. During the
1-1-79 the agreement, a period of
�leoger is maintained showing the total purchase price
and amounts expended against it. Only the portion purchased each year
is added to the fixed asset record and Investment in Fixed Assets; the
unpaid balance is recorded as a liability.
The asset so acquired must be used by, and in, the county department of
social services for the useful life of the asset. Useful life will be
the same as defined by the Internal Revenue Service oFaitTline,
depreciation for that cIa's_s_ o£arse . etas removed
cepa=trnnt, `sold ortraded before the use�lelifeeislexhsted,fthe the
prorata cost for the remaining useful life is to be refunded to CSDSS.
Interest expense is not reimbursable. Fees or costs added on as costs
of financing the agreement are not rei hursa .
5.392.37 RENTAL OF EQUIPMENT IN LIEU OF PURCHASE.
Rev. Equipment which is rented by the Department with no intention to acquire
eff. ownership of the item is reimbursable not to exceed an annual amount
equal to 25% of the total cost of the asset.
4/1/80
The basic business approach to the rental of equipment, excluding ADP
equipment, might be called the value received concept. If a Department
can enter into a lease/purchase agreement for a ui rent which wig
ultimately place _pep ..._.... . nd t
�I�ershp-,of the„item with the,.-Ijepa�ent.and the
equipment w• 1 ""
�_�,have a serviceable value
it should do so. It cannot be considered to be proper nor prudent to
rent a piece of equipment with no intent to purchase, at $75.00 a month
for five years when the item's value was $1,900.00, at the point of
the rent initiation.
THIS REVISION: V-80-3 LAST REVISION: V-78-15 REVISION NUMBER
Adopted: 2/1/80 Adopted: 11-9-78
Effective Date: 4/1/80 Effective Date: 1-1-79
1
COLORADO DEPARTMENT OF SOCIAL SERVICES
STAFF MANUAL VOLUME 5
FINANCE
•
DEPARTMENT OF SOCIAL SERVICES
PHONE 1303)352-1551
P.O.BOX A
, GREELEY,COLORADO 80631
• '. ISI At. es
Eugene Mckenna, Director
ry
" ,, March 17, 1980
•
COLORADO
Mt. Gary .Angerhofer, Assistant Deputy
Budget and Management
Colorado State Department of Social Services
1575 Sherman
Denver, CO 80203
Dear Mr. Angerhofer: SUBJECT: Phone System: Veld County
Department of Social Services
Weld County is considering proposals for an updated and more cost-effective
telephone system for the Weld County Department of Social Services. In con-
sidering these, we need your assistance in answering several questions.
The County Department is spending approximately $1,450 per month for base
telephone service from Mountain Bell. The County Board is considering pro-
posals from other providers that would update service and do so at reduced
cost. For instance, one proposal would provide updated service for $1,132
per month and the State and County would own the equipment after 5 years.
The State,in Volume V, logically encourages counties to consider lease/
purchase agreements as being more cost-effective than the straight and
continuous rental of equipment.
As you know, Counties have limited flexibility in taking advantage of some
cost-saving plans due to the limited allocations in expense areas such as
"Operating" or "Equipment" (Capital Outlay) . We wish to explore options
that are available to us.
1. (lie quoted price provides installment payments of equal amounts over
60 months. At the end of 60 months the County has the option to pur-
chase the equipment for $1.00. Would these installment payments be
reimbursable to the County?
2. If the County through its General Fund elects to purchase the equipment
and lease the equipment to the County Department over a period of 60
months, would these lease costs be 80% reimbursed by the State?
•
Page 2
Mr. Gary Angerhofer, Asst. Deputy
Budget and management
State Depai L-iant
*arch 17, 1980
3. A provider/bidder may offer two price.plans. The first allows for a
• discount if the County Department purchases the equipment in a one-time
lup sum payment. The second plan is to pay the regular or non-dis-
counted price over a period of time , i.e. 36 or 60 months. (straight
line proration) .
In considering the second plan, would the State provide 80% reimbursement
of the monthly costs?
4. We assume any installation costs can be considered under "Operating."
Please advise if this is not so.
5. We interpret that Volume V policy allows transfers of funds from
"Operating" to "Capital Outlay" upon State approval. Although we hope
these costs would be interpreted as "Operating," if not, we may need to
request a transfer. Please advise if this transfer option is not feasible.
In our assessment of these proposals, strong consideration is being given to
reducing costs where possible without compromising service. I know you realize
that any savings effected will be to both the County's and State's benefit. So
we would be most appreciative of any suggestions you may have to help us achieve
these objectives.
As our Board is faced with making a decision within a short time frame, we
would appreciate your early consideration of these questions.
Sincerely,
4
EMcK:rh Eugene i4cKenna, Director
cc: Ion Warden, Weld County Finance Officer
Don Armstrong, Office of Accounting, State Department
Betty DeGabain, State Department
•
•
DEPARTMENT OF SOCIAL SERVICES
PHONE 1303)352-1551
P.O.BOX
_ GREELEY,COLORADO P-1R?1
Eugene McKenna, Director
i March 17, 1980
COLOR ADO
Mr. Gary Angerhofer, Assistant Deputy
Budget and Management
Colorado State Department of Social Services
1575 Sherman
Denver, CO 80203
Dear Mr. Angerhofer: SUBJECT: Phone System: Yield County
DepaiUr„nt of Social Services
Weld County is considering proposals for an updated and more cost-effective
telephone system for the held County Department of Social Services. In con-
sidering these, we need your assistance in answering several questions.
The County Department is spending approximately $1,450 per month for base
telephone service from Mountain Bell. The County Board is considering pro-
posals from other providers that would update service and do so at reduced
cost. For instance, one proposal would provide updated service for $1,132
per month and the State and County would own the equipment after 5 years.
The State,in Volume V, logically encourages counties to consider lease/
purchase agreements as being more cost-effective than the straight and
continuous rental of equipment..
•
As you know, Counties have limited flexibility in taking advantage of some
cost-saving plans due to the limited allocations in expense areas such as
"Operating" or "Equipment" (Capital Outlay) . We wish to explore options
that are available to us.
1. One quoted price provides installment payments of equal amounts over
60 months. At the end of 60 months the County has the option to pur-
chase the equipment for $1.00. Would these installment payments be
reimbursable to the County?
2. If the County through its General Fund elects to purchase the equipment
and lease the equipment to the County Department over a period of 60
months, would these lease costs be 80% reimbursed by the State?
•
•
Page 2
Mr. Gary Angernofer, Asst. sputa
Budget and Management
• State Department
Mardi 17, 1980
3. A provider/pickier may offer two price plans. The first allows for a
discount if the County Department purchases the equipment in a one-time
lump sum payment. The second plan is to pay the regular or non-dis-
counted price over a period of time , i.e. 36 or 60 months. (straight
line proration) .
In considering the second plan, would the State provide 80% reimbursement
of the monthly costs?
4. We assume any installation costs can be considered under "Operating."
Please advise if this is not so.
5. We interpret that Volume V policy allows transfers of funds from
"Operating" -to "Capital Outlay" upon State approval. Although we hope
these costs would be interpreted as "Operating," if not, we may need to
request a transfer. Please advise if this transfer option is not feasible.
In our assessment of these proposals, strong consideration is being given to
reducing costs where possible without compromising service. I know you realize
that any savings effected will be to both the County's and State's benefit. So
we would be most appreciative of any suggestions you may have to help us achieve.
these objectives.
As our Board is faced with making a decision within a short time frame, we
would appreciate your early consideration of these questions.
Sincerely,
E IcK:rh E '
'Le ;.cl enna I, f ector
cc: Lon Warden, Weld County Finance Officer
Don Armstrong, Office of Accounting, State Department
Betty DeGabain, State Department
ei
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TO: Don Warden, Weld County Financial Officer
FROM: Gene McKenna, Director, Social Services
SUBJECT: Phone Bids -. Walton Building
ENCLOSURE.... Angerhofer e r Letter—of- March 21, -1980
DATE: March 25, 1980
Dan:
Attached is our answer from the State in reply to my questions of March 17.
Believe our best approach is the response to question number 3. A "non-discounted"
price is 80% reimbursable as "capital outlay." This approach recognizes that the
State and county are purchasing equipment with residual value at the end of a
pay-out period. "Interest," per se, is not reimbursable, but a pay-off of the
non-discounted purchase price is. The State will give the Department permission
to transfer funds from "Operating" to "Capital Outlay."
enc.
•
^aF �, ' i `4ir 1'nr
1f C
t. .f DEPARTMENT OF SOCIAL SERVICESPB ':h
-NjM:�
1575 SHERMAN STREET RUben,A. Valdez
RICHARD D. LAMM DENVER, COLORADO 80203 Executive Director
GOVERNOR
March 21, 1980
Mr. Eugene McKenna, Director
Weld County Department of Social Services
P. 0. Box A
Greeley, Colorado 80631
Dear Mr. McKenna:
In response to your letter of March 17 about modifications to your phone
system, the expenditure could be considered operating or capital outlay depend-
ing on the situation. In any situation, interest on a lease/purchase arrangement
is not reimbursable. To answer your specific questions:
1) Installment payments under such a lease/purchase arrangement would be re-
imbursable (except for interest charges, if any) and ould be considered
a capital outlay expenditure.
2) Expenditures made under the described arrangement in which the county
purchases the equipment and leases it to the county department would be
reimbursable as an operating expenditure.
3) For both of the examples the expenditure would be reimbursable as a cap-
ital outlay. The difference between the discounted and non-discounted
price would not be considered "interest" and would be reimbursable.
4) Installation costs would be considered operating.
5) A transfer between operating and capital outlay for the circumstances
described in questions 1 and 3 would be approved because the expenditure
appears to save a substantial amount of money in a relatively short time
frame.
If you make a decision which would make the expenditure capital outlay,
please send a separate request referencing our correspondence.
Since•-1 ,
Go t`. Anger fer, Assistant Deputy
for Budge nd Management
GEA/e
cc: Sue Christie
Don Armstrong
Bill LaVance
Doug Mackey
Hello