Agenda packet — Hanford City Council, January 16, 2024 (part 3 of 4)

Fire and Rescue Apparatus
Coverage:

Three (3) Year Material and Workmanship
Velocity and Impel Custom Chassis
Limited Warranty Limited Warranty Limited Warranty Limited Warranty Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

Portions of the apparatus manufactured by Pierce shall be free from defects in material and workmanship

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date the apparatus is placed in service, or 60 days from the original buyer invoice date, whichever comes first. Warranty Begins:

This limited warranty shall apply only if the product is properly maintained in accordance with Pierce's maintenance instructions and manuals and is used in service which is normal to the particular model. Normal service means service which does not subject the product to stresses or impacts greater than normally result from careful use. If the Buyer discovers a defect or nonconformity, it must notify Pierce in writing within thirty (30) days after the date of discovery, but in any event prior to the expiration of the warranty period.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty applies, where applicable, to Goldstar lamination, defroster heater coil and motor blower assembly (excluding the FET PWM module), heater, air conditioning condenser coil and fan/motor assembly, air conditioning evaporator coil and motor blower assembly (excluding the drain pan pump and thermostat), under seat heaters coil and motor blower assembly (excluding the FET PWM module),
HVAC electronic switches, HVAC hoses and hard lines,
heater water valve, Pierce PS6 seat frames and hardware, Pierce One-Eleven mirrors, Pierce hands-free scba holder, cracking or color loss of roto-molded components, Meritor rear axle, Wabco ABS system, cab door handles, Standen
spring suspension components, and the gauge instrument
cluster.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGE S.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE
POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

If the product fails to conform to the warranty set forth in paragraph 1 during the warranty period, and such nonconformity is not due to misuse, neglect, accident or improper maintenance, Buyer must notify Pierce within the time period specified in paragraph 1, and shall make the product available for inspection by Pierce or its designated agent. At the request of Pierce, any allegedly defective product shall be returned to Pierce by Buyer for examination and/or repair. Buyer shall be responsible for the cost of such transportation, and for risk of loss of or damage to the product during transportation.

3. BUYER'S EXCLUSIVE REMEDY.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Three (3) Years, or
30,000 Miles, or
5000 Engine Hours
Warranty Period
Ends After:

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle.
7/2/2015 WA0284
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

2. DISCLAIMERS OF WARRANTIES
The original purchaser may void this warranty in part or in its entirety if the product is repaired or replaced (a) without prior written approval of the Pierce Customer Service Department; or (b) at a facility which has not been approved by Pierce as to technical capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

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Cummins Warranty
Worldwide
Fire Apparatus/Crash Trucks

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Coverage
Products Warranted
This Warranty applies to new diesel Engines sold by
Cummins and delivered to the first user on or after
April 1, 2007, that are used in fire apparatus truck and crash truck* applications Worldwide.

Base Engine Warranty
The Base Engine Warranty covers any failures of the
Engine which result, under normal use and service,
from a defect in material or factory workmanship
(Warrantable Failure). This Coverage begins with the
sale of the Engine by Cummins and ends five years or
100,000 miles (160,935 kilometers), whichever occurs
first, after the date of delivery of the Engine to the first user .

Engine aftertreatment components included in the
Cummins Critical Parts List (CPL) and marked with a
Cummins part number are covered under Base Engine
Warranty.

Additional Coverage is outlined in the Emission
Warranty section.

These Warranties are made to all Owners in the
chain of distribution and Coverage continues to all
subsequent Owners until the end of the periods of
Coverage.

Cummins
Responsibilities
Cummins will pay for all parts and labor needed to
repair the damage to the Engine resulting from a
Warrantable Failure.

Cummins will pay for the lubricating oil, antifreeze,
filter elements, belts, hoses and other maintenance
items that are not reusable due to the Warrantable
Failure.

Cummins will pay for reasonable labor costs for
Engine removal and reinstallation when necessary to
repair a Warrantable Failure.

Cummins will pay reasonable costs for towing a
vehicle disabled by a Warrantable Failure to the
nearest authorized repair location. In lieu of the towing expense, Cummins will pay reasonable costs for
mechanics to travel to and from the location of the
vehicle, including meals, mileage and lodging when
the repair is performed at the site of the failure.

Owner
Responsibilities
Owner is responsible for the operation and
maintenance of the Engine as specified in Cummins
Operation and Maintenance Manuals. Owner is also
responsible for providing proof that all recommended
maintenance has been performed.

Before the expiration of the applicable Warranty,
Owner must notify a Cummins distributor ,authorized
dealer or other repair location approved by Cummins
of any Warrantable Failure and make the Engine
available for repair by such facility. Except for Engines disabled by a Warrantable Failure, Owner must also
deliver the Engine to the repair facility.

Service locations are listed on the Cummins Worldwide
Service Locator at cummins.com.

Owner is responsible for the cost of lubricating oil,
antifreeze, filter elements and other maintenance items provided during Warranty repairs unless such items
are not reusable due to the Warrantable Failure.

Owner is responsible for communication expenses,
meals, lodging and similar costs incurred as a result of a Warrantable Failure.

Owner is responsible for non-Engine repairs and for
‘‘downtime’’expenses, cargo damage, fines, all
applicable taxes, all business costs and other losses
resulting from a Warrantable Failure.

Owner is responsible for a $100 (U.S. Dollars)
deductible per each service visit under this plan in the 3rd, 4th and 5th years of Base Engine Warranty. The
deductible will not be charged during the first 2 years of the Base Engine Warranty.

Limitations
Cummins is not responsible for failures or damage
resulting from what Cummins determines to be abuse
or neglect, including, but not limited to: operation
without adequate coolants or lubricants; overfueling;
overspeeding; lack of maintenance of lubricating,
cooling or intake systems; improper storage, starting,
warm-up, run-in or shutdown practices; unauthorized
modifications of the Engine.

Any unauthorized modifications to the aftertreatment
could negatively effect emissions certification and void Warranty.

Cummins is also not responsible for failures caused by
incorrect oil, fuel or diesel exhaust fluid or by water , dirt or other contaminants in the fuel, oil or diesel

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exhaust fluid.

This Warranty does not apply to accessories supplied
by Cummins which bear the name of another
company. Such non-warranted accessories include, but
are not limited to: alternators, starters, fans, air
conditioning compressors, clutches, filters,
transmissions, torque converters, vacuum pumps,
power steering pumps, fan drives and air compressors.

Cummins branded alternators and starters are covered
for the first two years from the date of delivery of the Engine to the first user ,or the expiration of the Base Engine Warranty, whichever occurs first.

Failures resulting in excessive oil consumption are not covered beyond the duration of the Coverage or
100,000 miles (160,935 kilometers) or 7,000 hours from
the date of delivery of the Engine to the first user ,
whichever of the three occurs first. Before a claim for excessive oil consumption will be considered, Owner
must submit adequate documentation to show that
consumption exceeds Cummins published standards.

Failures of belts and hoses supplied by Cummins are
not covered beyond the first year from the date of
delivery of the Engine to the first user or the duration of the Warranty, whichever occurs first.

Parts used to repair a Warrantable Failure may be new
Cummins parts, Cummins approved rebuilt parts or
repaired parts. Cummins is not responsible for failures resulting from the use of parts not approved by
Cummins.

A new Cummins or Cummins approved rebuilt part
used to repair a Warrantable Failure assumes the
identity of the part it replaced and is entitled to the remaining Coverage hereunder .

Cummins Inc. reserves the right to interrogate
Electronic Control Module (ECM) data for purposes of
failure analysis.

CUMMINS DOES NOT COVER WEAR OR WEAROUT
OF COVERED PARTS.

CUMMINS IS NOT RESPONSIBLE FOR INCIDENTAL
OR CONSEQUENTIAL DAMAGES.

THIS W ARRANTYAND THE EMISSION W ARRANTY

SET FORTH HEREINAFTER ARE THE SOLE

W ARRANTIESMADE BY CUMMINS IN REGARD TO
THESE ENGINES. CUMMINS MAKES NO OTHER

W ARRANTIES,EXPRESS OR IMPLIED, OR OF

MERCHANT ABILITYOR FITNESS FOR A
P ARTICULARPURPOSE.

This Warranty gives you specific legal rights, and you
may also have other rights which vary from state to
state.

Emission
Warranty
Products Warranted
This Emission Warranty applies to new Engines
marketed by Cummins that are used in the United
States** in vehicles designed for transporting persons
or property on a street or highway. This Warranty
applies to Engines delivered to the first user on or after September 1, 1992.

Coverage
Cummins warrants to the first user and each
subsequent purchaser that the Engine is designed,
built and equipped so as to conform at the time of sale by Cummins with all U.S. federal emission regulations
applicable at the time of manufacture and that it is free from defects in material or factory workmanship which
would cause it not to meet these regulations within the longer of the following periods: (A) Five years or
100,000 miles (160,935 kilometers) of operation,
whichever occurs first, as measured from the date of
delivery of the Engine to the first user or (B) The Base Engine Warranty.

If the vehicle in which the Engine is installed is
registered in the state of California, a separate
California Emission Warranty also applies.

Limitations
Failures, other than those resulting from defects in
material or factory workmanship, are not covered by
this Warranty.

Cummins is not responsible for failures or damage
resulting from what Cummins determines to be abuse
or neglect, including, but not limited to: operation
without adequate coolants or lubricants; overfueling;
overspeeding; lack of maintenance of lubricating,
cooling or intake systems; improper storage, starting,
warm-up, run-in or shutdown practices; unauthorized
modifications of the Engine.

Any unauthorized modifications to the aftertreatment
could negatively effect emissions certification and void Warranty.

Cummins is also not responsible for failures caused by
incorrect oil, fuel or diesel exhaust fluid or by water , dirt or other contaminants in the fuel, oil or diesel
exhaust fluid.

Cummins is not responsible for non-Engine repairs,
‘‘downtime’’expenses, cargo damage, fines, all
applicable taxes, all business costs or other losses
resulting from a Warrantable Failure.

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Cummins Inc.

Box 3005
Columbus, IN 47202-3005
U.S.A.

Bulletin 3381161
Printed in U.S.A. Rev. 08/09
©2001 Cummins Inc.

CUMMINS IS NOT RESPONSIBLE FOR INCIDENTAL
OR CONSEQUENTIAL DAMAGES.
* Airport operated crash trucks and fire department
operated trucks employed to respond to fires,
hazardous material releases, rescue and other
emergency-type situations.
** United States includes American Samoa, the
Commonwealth of Northern Mariana Islands, Guam,
Puerto Rico and the U.S. Virgin Islands.

Cummins Inc.

Box 3005
Columbus, IN 47202-3005
U.S.A.

Bulletin 3381161
Printed in U.S.A. Rev. 08/09
/H230052001 Cummins Inc.

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4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

Fire and Rescue Apparatus
Coverage:

Lifetime Fifty (50) Year Structural Integrity
Chassis Frame & Crossmembers
Fifty (50) Years
(Expected Life of Apparatus)
Warranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Custom chassis frame rail and cross members manufactured by Pierce shall be free from defects in material and
workmanship
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Limited Warranty
Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty does not apply to damage caused by corrosion.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

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THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty excludes brake pads, brake rotors, seal boots and shock absorbers.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGE S.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

Three (3) Years
-or-
30,000 Miles
Warranty Period
Ends After:

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle.
12/16/2013 WA0050
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

Fire and Rescue Apparatus
Coverage:

Three (3) Year Material and Workmanship
TAK-4 Independent Front Suspension
Limited Warranty Limited Warranty Limited Warranty Limited Warranty Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The TAK-4 Front Independent Suspension and Steering
Gears shall be free from defects in material and
workmanship.

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory). Warranty Begins:

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Fire and Rescue Apparatus
Coverage:

SUPPLIER
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The Meritor axle shall be covered by Meritor as indicated in the attached Meritor warranty coverage description

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the purchaser who first puts the product in service ("Buyer"):
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

The exclusions listed in the attached Meritor warranty
description shall apply.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

Five (5) YearsWarranty Period
Ends After:

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle. 6/29/2020 WA0384
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

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MERITOR
®

COMMERCIAL

VEHICLE SYSTEMS
WARRANTY/MODEL YEAR 2020 VEHICLES

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Advantage Program
Purchasing additional coverage on select components will continue to safeguard your investment against major repair costs after the initial base coverage expires. You can find out more about the Advantage Program by visiting www.meritor.com or by contacting Meritor at 866-OnTrac1 (866-668-7221).
2 Linehaul ............................................................................................................. 3-4 General Service ................................................................................................... 5-6 Heavy Service/Specialty Vehicle .......................................................................... 7-8 Fire and Emergency ................................................................................................ 9 Transit Bus ........................................................................................................... 10 Off-Highway Service .............................................................................................. 11 Terms and Conditions ............................................................................................ 12 How to Read Warranty Coverage
Number of Years Mileage (in thousands)
Unl=Unlimited
P=Parts Only
P&L=Parts & Labor
Notice:

Models or components that are approved for use by Meritor’s vocational guidelines contained in Meritor Publication TP-9441 for axles, SP-8320 for trailer axles, TP-12126 for drivelines, which are not specifically listed, are warranted for one year, unlimited miles, parts only (1/Unl/P).

Products purchased on an incomplete vehicle (glider) are limited to one year, unlimited miles parts only (1/Unl/P).

Effective Model Year 2020 Vehicles

WARRANTY INFORMATION CONTENTS

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n Bulk Hauler
n Chip Hauler (Truck)*
n Doubles
n Flatbed
n General Freight
n Grain Hauler
n Livestock Hauler
n Moving Van
n Pipe Hauler
n Refrigerated Freight
n Tanker
n Triples
FD-965
FF-941
FF-942
FF-943
FF-944
FF-961
FF-966
FF-967
FG-941
FG-943
MFS-10-122A
MFS-10-143A-N
MFS-10-144A-N
MFS-12-122A-N
MFS-12-122B-N
MFS-12-122C-N
MFS-12E-122A-N
MFS-12E-122B-N
MFS-12E-122C-N
MFS-12-124A-N
MFS-12-132B-N
MFS-12-132C-N
MFS-12E-132B-N
MFS-12E-132C-N
MFS-12-143A-N
MFS-12E-143A-N
MFS-12-144A-N
MFS-13-122A-N
MFS-13-122B-N
MFS-13-122C-N
MFS-13-132B-N
MFS-13-132C-N
MFS-13-143A-N
MFS-13-144A-N
MFS-13B-122B-N
MFS-13B-122C-N
MFS-13B-132B-N
MFS-13B-132C-N
MFS-14-122A-N
MFS-14-124A-N
MFS-14-143A-N
MFS-14-144A-N
n High mileage operation (over 60,000 miles/year)
n Well maintained major highways of concrete or
asphalt construction
n Greater than 30 miles between starting and stopping
Coverage under Meritor’s warranty require that the application of products be properly approved pursuant to OEM and Meritor approvals. Refer to TP-9441 for axles, SP-8320 for trailer axles, TP-12126 for drivelines, and/or contact Meritor regarding specific application approval questions on any product line. * Chip Hauler vehicles require specific axle models listed below and Linehaul condition to be eligible for Linehaul warranty consideration.

Linehaul Vehicles
Front Non-Drive Steer Axles – 5/750/P&L
Linehaul Typically Is
RPL 5/500/P , 1/Unl/P&L
MXL 3/350/P , 1/Unl/P&L
155N 1/Unl/P
92N 1/Unl/P
Drivelines
RS-19-144/145/A
MS-19-14X
MS-21-144
RS-21-145
RS-21-160
MS-23-17X
RS-23-160
RS-23-161
RS-23-186
Rear Drive Single Axles – 5/750/P&L
1 These models required for Chip Hauler and Linehaul warranty consideration. 2 Each vehicle must have a Request for Application Recommendation (RAR) approved by Meritor prior to vehicle build. All RARs must identify the chassis number or VIN. Refer to Product Information Letter #303 and #396 for further details.

RT-34-144/P/A
RT-40-145/A
RT-40-160/P 1,2
RT-46-160/P 1,2
RT-46-164EH/P 1,2
RT-50-160/P 1,2
MA-40-165
MA-40-175
MT-34-14X/P
MT-40-14T/P
MT-40-14X/P
MT-40-14X/P
MT-40-14XHE
MT-40-144/P
MT-40-943
MT-40-943-SP
RZ-166 2
RZ-188
Rear Drive Tandem/Tridem Axles – 5/750/P&L

LINEHAUL WARRANTY INFORMATION
3

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Cam Q Series Trailer Brakes 5/500/P , 1/100/L
Q+ Drum Brake™ 5/500/P , 1/Unl/P&L
ASA 5/500/P , 1/Unl/P&L
Hubs/Cast Drums and Other Wheel-end Components 1/Unl/P
Hydraulic Disc Brakes 1/Unl/P
All Other Brakes 1/Unl/P
STEELite X30 Drum Brake™ 2 12-Years or Wearable Life/P
EX+ Air Disc Brake™ 5/500/P , 1/Unl/L
EX+ Air Disc Brake Extended Standard Warranty 3 5/500/P&L 1 Includes: bushing, seal, cam, ASA lubrication and wear coverage of 3/500/P&L.
2 Based on stamped wear diameter max.
3 Applies only to MA761 friction material code CD brake assembly i.e.

EX225LXXXCDXXX
MPA38/40 (Tandem Axle Parallelogram) 1
Major Structural Components 5/500/P , 1/100/L
Curbing Damage Warranty 2 5/500/P , 1/100/L
Height Control Valve 1/100/P&L
Shock Absorbers 2/200/P&L
Air Springs 2/200/P , 1/100/L
Bushings 5/P , 3/L
PinLoc Air Controls 1/100/P&L
PinLoc Actuator 3/300/P&L
MPA20 (Single Axle Parallelogram)
Major Structural Components 5/500/P , 1/100/L
Height Control Valve 1/100/P&L
Shock Absorbers 2/200/P&L
Air Springs 2/200/P , 1/100/L
Bushings 5/P , 3/L
MTA (Trailing Arm)
Major Structural Components 5/500/P , 1/100/L
Height Control Valve 1/100/P&L
Shock Absorbers 2/200/P&L
Air Springs & Rebound Straps 2/200/P , 1/100/L
Bushings 5/500/P , 3/300/L
1 Fastener torque coverage is limited to 2/Unl/P&L when torqued by Meritor (For axle and ABS coverage, refer to appropriate product warranties.) 2 “Curbing damage” is defined as deformation (bending, buckling, or breakage), caused by sudden impact with a curb or similar fixed object. Damage to the RideSentry slider box (the suspension sliding subframe, consisting of the frame rails, crossmembers, and central A-frame assembly), caused by accidental trailer impact with a curb or similar fixed object, is eligible for warranty coverage.

TQ, TQD, TR, TRD Beam and Brackets 5/750/P&L
1 For brake components and ABS Coverage, refer to appropriate product warranties.

MTIS Components 5/Unl/P , 1/Unl/L
Beam and Brackets 5/500/P , 1/100/L
Wheel End Systems 1
Standard System 2 1/100/P&L
PreSet by Meritor 3 5/500/P&L
AxlePak5 4 5P/L
AxlePak7 5 7P/L
1 Includes hub, wheel seals and wheel bearings—all systems require annual inspections and proper documentation to ensure full coverage. 2 When installed by Meritor.
3 Requires approved hubcap stating PreSet by Meritor on hubcap face. 4 When specified with AxlePak5 wheel end system, coverage on MTIS thru-tee and stator is 5/Unl/P , 1/Unl/L.
5 When specified with AxlePak7 wheel end system, coverage on MTIS thru-tee and stator is 7/Unl/P , 1/Unl/L.
(For brake components and ABS coverage, refer to appropriate product warranties.)
Brake Components Trailer Air Suspension Systems
TAG/Pusher Axles1
Meritor Tire Inflation System
Trailer Axles
4 LINEHAUL WARRANTY INFORMATION

Page 199 of 335 ends

n Auto Hauler
n Beverage Truck
n Chip Hauler
n Cross Country Coach
n Flatbed
n Front Engine Commercial Chassis
n Front Engine Integral Coach
n General Freight
n Intercity Coach
n Intermodal Chassis
n Livestock Hauler
n Meat Packer
n Moving Van
n Municipal Truck
n Newspaper Delivery
n Pick-Up and Delivery
n Pipe Hauler
n Platform Auto Hauler
n Rear Engine Integral Coach
n Recreational Vehicles
n Refrigerated Freight
n School Bus
n Stake Truck
n Tanker
n Tanker Trailer
n Tour Bus
n Wrecker
FD-965
FF-941
FF-942
FF-943
FF-944
FF-946
FF-961
FF-966
FF-967
FG-941
FH-941
FH-946 1
FL-941
FL-943
MFS-6-151A-N
MFS-6-153B-N
MFS-6-162B-N
MFS-6-153C-N
MFS-6-162C-N
MFS-7-113C-N
MFS-7-153C-N
MFS-7-163C-N
MFS-8-113B-N
MFS-8-143A-N
MFS-8-153B-N
MFS-8-163B-N
MFS-10-122A
MFS-10-143A-N
MFS-10-144A-N
MFS-12-122A-N
MFS-12E-122A-N
MFS-12-122B-N
MFS-12E-122B-N
MFS-12-122C-N
MFS-12E-122C-N
MFS-12-124A-N
MFS-12-132B-N
MFS-12E-132B-N
MFS-12-132C-N
MFS-12E-132C-N
MFS-12-143A-N
MFS-12-144A-N
MFS-12E-143A-N
MFS-13-122A-N
MFS-13-122B-N
MFS-13B-122B-N
MFS-13-122C-N
MFS-13B-122C-N
MFS-13-132B-N
MFS-13-132C-N
MFS-13B-132B-N
MFS-13B-132C-N
MFS-13-143A-N
MFS-13-144A-N
MFS-14-122A-N
MFS-14-124A-N
MFS-14-143A-N
MFS-14-144A-N
MFS-16-122A-N
MFS-16-133A-N
MFS-16-135A-N
MFS-16-143A-N
MFS-18-133A-N
MFS-18-135A-N
MFS-18-193A-N
MFS-20-133A-N
MFS-20-135A-N
MFS-20-192A-N
MFS-20-193A-N
MFS-22-135A-N
MFS-22H-135A-N
MFS-22-193A-N
MFS-22H-193A-N
n Lower mileage operations (less than 60,000 miles/year) n Generally, on-road service (less than 10% off-road)
n An average of three (3) miles between starting and stopping Coverage under Meritor’s warranty require that the application of products be properly approved pursuant to OEM and Meritor approvals. Refer to TP-9441 for axles, SP-8320 for trailer axles, TP-12126 for drivelines, and/or contact Meritor regarding specific application approval questions on any product line.

General Service Vehicles
Front Non-Drive Steer Axles – 2/Unl/P&L
General Service Typically Is

GENERAL SERVICE WARRANTY INFORMATION
1 Can also be used with reduced steer angles in tag position in Coach Applications. 5 MS-17-13X
MS-17-14X
MS-19-13X
MS-19-14X
RS-17-144/145/A
RS-19-144/145/A
MS-21-13X
MS-21-14X
MS-21-144
MS-23-17X
RS-21-145/A
RS-21-160
RC-22-145
RC-22-145/A
RC-23-160
RC-23-161
RC-23-162 1
RC-23-165 1
RS-23-160
RS-23-161
RS-23-186
RS-24-160
RC-25-160
RS-26-185
MS-26-616
MS-26-616-SP
RS-30-185
MS-30-616
MS-30-616-SP
RS-35-380
71162
71163
79163
Rear Drive Single Axles – 2/Unl/P&L
1 3/Unl/P&L if PreSet by Meritor.

MT-34-14X/P
RT-34-144/P/A
MT-40-14T/P
MT-40-14X/P
MT-40-14XHE
MT-40-144/P
RT-40-145/A
MT-44-14X/P
RT-44-145/P
RT-46-169
MT-52-616
RT-52-1851
MT-58-616
RT-58-1851
MT-70-380
RZ-188
Rear Drive Tandem/Tridem Axles – 2/Unl/P&L
1 Each vehicle must have a Request for Application Recommendation (RAR) approved by Meritor prior to vehicle build. All RARs must identify the chassis number or VIN.

Refer to Product Information Letter #303 and #396 for further details.

MX-08-130-FV (FSD-08A)
MX-10-130-FV (FSD-10A)
MX-12-130-FV (FSD-12A)
MX-13-130-FV (FSD-13A)
MX-14-130-FV (FSD-14A)
MX-16-130-FV (FSD-16A)
MX-18-130-FV (FSD-18A)
MX-18-130-SD (SDA-1800)
MX-20-130-FV (FSD-20A)
MX-21-130-FV (FSD-21A)
MX-21-130-SD (SDA-2100)
MX-23-130-FV (FSD-23A)
MX-23-130-SD (SDA-2300)
MX-29-130-FV (FSD-29A)
Front Drive/Non-Drive Steer Axles – 1/Unl/P&L
RT-40-160/P
RT-46-160/P
RT-46-164EH/P
RT-50-160/P
RZ-166
Rear Drive Tandem/Tridem -
3/Unl/P&L
RPL 4/400/P , 1/Unl/P&L
MXL 3/350/P , 1/Unl/P&L
155N 1/Unl/P
92N 1/Unl/P
Drivelines
11170
523
RND-14H
RND-16A
Rear Drive Axles – 1/Unl/P&L
MPT-318
MPT-500
MPT-510
MPT-518
MPT-526
MPT-531
MPT-543
MPT-170
MPT-1702
MPT-175
MPT-185
MPT-190
PTO – 1/Unl/P&L
516 FAT 30
Transmission – 1/Unl/P&L

Page 200 of 335 ends

Cam Q Series Trailer Brakes 3/Unl/P , 1/Unl/L
Cam P3 2/200/P
Cam 3/Unl/P
Q+ Drum Brake™ 3/Unl/P&L
Q+ Drum Brake ™ 3 2/200/P&L
ASA 3/Unl/P
ASA3 2/200/P
Hubs/Cast Drums and Other Wheel-end Components 1/Unl/P
Hydraulic Disc Brakes 1/Unl/P
All Other Brakes 1/Unl/P
STEELite X30 Drum Brake™ 2 12-Years or Wearable Life/P
EX+ Air Disc Brake™ 2/Unl/P&L
1 Includes: bushing, seal, cam, ASA lubrication and wear coverage of 1/Unl/P . 2 Based on stamped wear diameter max.
3 Applies to Tour Bus and Cross Country Coach only.

Beam and Brackets 1 5/Unl/P , 1/Unl/L
Wheel End Systems 2
Standard System 3 1/Unl/P&L
AxlePak5 4 5/P&L
AxlePak7 5 7/P&L
1 9000 Series is 3/Unl/P , 1/Unl/L
2 Includes hub, wheel seals and wheel bearings—all systems require annual inspections and proper documentation to ensure full coverage. 3 When installed by Meritor.
4 When specified with AxlePak5 wheel end system, coverage on MTIS thru-tee and stator is 5/Unl/P , 1/Unl/L.
5 When specified with AxlePak7 wheel end system, coverage on MTIS thru-tee and stator is 7/Unl/P , 1/Unl/L.
(For brake components and ABS coverage, refer to appropriate product warranties.)
Beam & Brackets 6/Unl/P , 1/Unl/L
Wheel End Systems 1
Standard System 1/Unl/P&L
AxlePak7 7/P&L
Beam and Brackets 7/P , 1/L
1 Includes hub, wheel seals and wheel bearings—all systems require annual inspections and proper documentation to ensure full coverage.

MPA38/40 (Tandem Axle Parallelogram) 1
Major Structural Components 5/Unl/P , 1/Unl/L
Curbing Damage Warranty 2 5/500/P , 1/100/L
Height Control Valve 1/Unl/P&L
Shock Absorbers 2/Unl/P&L
Air Springs 2/Unl/P , 1/Unl/L
Bushings 5/P , 3/L
PinLoc Air Controls 1/Unl/P&L
PinLoc Air Actuator 3/Unl/P&L
MPA20 (Single Axle Parallelogram)
Major Structural Components 5/Unl/P , 1/Unl/L
Height Control Valve 1/Unl/P&L
Shock Absorbers 2/Unl/P&L
Air Springs 2/Unl/P , 1/Unl/L
Bushings 5/P , 3/L
MTA (Trailing Arm)
Major Structural Components 5/Unl/P , 1/Unl/L
Height Control Valve 1/Unl/P&L
Shock Absorbers 2/Unl/P&L
Air Springs and Rebound Straps 2/Unl/P , 1/Unl/L
Bushings 3 5/Unl/P , 3/Unl/L
(For axle and ABS coverage, refer to appropriate product warranties.) 1 Fastener torque coverage is limited to 2/Unl/P&L when torqued by Meritor 2 “Curbing damage” is defined as deformation (bending, buckling, or breakage), caused by sudden impact with a curb or similar fixed object. Damage to the RideSentry slider box (the suspension sliding subframe, consisting of the frame rails, crossmembers, and central A-frame assembly), caused by accidental trailer impact with a curb or similar fixed object, is eligible for warranty coverage.

Damage to other components or damage resulting from collision with another vehicle, rollover or fire is not covered under this provision. Warranty is not transferrable to another trailer VIN, and coverage does not apply if the trailer is deemed to be a total loss, scrapped, or otherwise not salvageable. 3 Raw wood applications 3/Unl/P , 1/Unl/L
MTIS Components 5/Unl/P , 1/Unl/L
TQ, TQD, TR, TRD Beam and Brackets 1 3/Unl/P , 1/Unl/L MC14002, MC16003, FH946 2/Unl/P&L
(For brake components and ABS coverage, refer to appropriate product warranties.)
1 3/Unl/P&L if sold with PreSet by Meritor.

Brake Components
Trailer Axles
Chassis Axles (2000 Series/ChassiPak)
Trailer Air Suspension Systems
Meritor® Tire Inflation System
TAG/Pusher Axles
6 GENERAL SERVICE WARRANTY INFORMATION

Page 201 of 335 ends

Heavy Service/Specialty Vehicle
n Airport Rescue Fire Fighting
(ARFF)
n Airport Shuttle*
n Asphalt Truck
n Block Truck
n Bottom Dump Trailer
Combination
n Cementing Vehicle
n Commercial Pick-Up
n Concrete Pumper
n Construction Material Hauler
n Mixer
n Demolition
n Drill Rig
n Dump
n Equipment Hauling
n Flatbed Trailer Hauler
n Flatbed Truck
n Fracturing Truck
n Front Loader
n Geophysical Exploration
n Hopper Trailer Combinations
n Landscaping Truck
n Liquid Waste Hauler
n Log Hauling
n Lowboy
n Michigan Special Gravel Trains
n Michigan Special Log Hauler
n Michigan Special Steel Hauler
n Michigan Special Waste Vehicle
n Municipal Dump
n Rear Loader (Refuse)
n Recycling Truck
n Residential Pick-Up (Refuse)
n Rigging Truck
n Roll-Off
n Scrap Truck
n Semi-End Dump
n Sewer/Septic Vacuum
n Shuttle Bus*
n Side Loader
n Snowplow/Snowblower
n Steel Hauling
n Tanker
n Tank Truck
n Tractors with Pole Trailers
n Tractor/Trailer with Jeeps
n Transfer Dump
n Transfer Vehicle
n Utility Truck
n Winch Truck
n Moderate mileage operation (less than 60,000 miles per year) n On/Off road vocations (10% or more off-road)
n Moderate to frequent stops/starts (up to 10 stops per mile) Coverage under Meritor’s warranty require that the application of products be properly approved pursuant to OEM and Meritor approvals. Refer to TP-9441 for axles, SP-8320 for trailer axles, TP-12126 for drivelines, and/ or contact Meritor regarding specific application approval questions on any product line.

Heavy Service/Specialty Vehicle Typically Is
FD-965
FF-941
FF-942
FF-943
FF-944
FF-946
FF-961
FF-966
FF-967
FG-941
FG-943
FH-941
FH-946
FL-941
FL-943
MFS-6-151A-N
MFS-6-153B
MFS-6-162B
MFS-6-162C
MFS-7-113C-N
MFS-7-153C-N
MFS-7-163C-N
MFS-8-113B-N
MFS-8-153B-N
MFS-8-163B-N
MFS-10-122A
MFS-10-143A-N
MFS-10-144A-N
MFS-12-122
MFS-12E-122
MFS-12-122B-N
MFS-12E-122B-N
MFS-12-122C-N
MFS-12E-122C-N
MFS-12-124A-N
MFS-12-132B-N
MFS-12E-132B-N
MFS-12-132C-N
MFS-12E-132C-N
MFS-12-143A-N
MFS-12-144A-N
MFS-12-155
MFS-13-122
MFS-13-122B-N
MFS-13B-122B-N
MFS-13-122C-N
MFS-13B-122C-N
MFS-13-132B-N
MFS-13B-132B-N
MFS-13-132C-N
MFS-13B-132C-N
MFS-13-143A-N
MFS-13-144A-N
MFS-13-155
MFS-14-122
MFS-14-124A-N
MFS-14-143A-N
MFS-14-144A-N
MFS-16-122A-N
MFS-16-133A-N
MFS-16-135A-N
MFS-16-143A-N
MFS-18-133A-N
MFS-18-135A-N
MFS-18-192A-N
MFS-18-193A-N
MFS-20-133A-N
MFS-20-135A-N
MFS-20-192A-N
MFS-20-193A-N
MFS-22-135A-N
MFS-22H-135A-N
MFS-22-193A-N
MFS-22H-193A-N
RF-16-145
RF-21-160
MX-10-120
MX-10-120 EVO
MX-12-120
MX-12-120 EVO
MX-14-120
MX-16-120
MX-18-120
MX-17-140
MX-19-140
MX-21-140
MX-21-160
MX-23-160
MX-810
Front Drive/Non-Drive Steer Axles – 2/Unl/P&L

HEAVY SERVICE/SPECIAL TY VEHICLE

WARRANTY INFORMATION
7 *Commercial chassis only
MS-17-14X
RS-17-144/145/A
MS-19-14X
RS-19-144
MS-21-114
MS-21-14X
RS-21-145
RS-21-145/A
RS-21-160
RC-22-145
RC-23-160
RH-23-160
RS-23-160
RC-23-161
RS-23-161
RS-23-186/380
RS-24-160
RS-25-160
MS-26-616
MS-26-616-SP
RS-26-185/380
MS-30-616
MS-30-616-SP
RS-30-185/380
MS-35-380
RS-38-380
RC-25-160
RC-26-633
MT-58-616
MT-58-616-SP
Rear Drive Single Axles – 2/Unl/P&L
RPL 3/Unl/P , 1/Unl/P&L
92N 1/Unl/P&L
MXL 1/Unl/P&L
Drivelines
11170
523
RND-14H
RND-16A
Rear Drive Axles – 1/Unl/P&L
MX-08-130-FV (FSD-08A)
MX-10-130-FV (FSD-10A)
MX-12-130-FV (FSD-12A)
MX-13-130-FV (FSD-13A)
MX-14-130-FV (FSD-14A)
MX-16-130-FV (FSD-16A)
MX-18-130-FV (FSD-18A)
MX-18-130-SD (SDA-1800)
MX-20-130-FV (FSD-20A)
MX-21-130-FV (FSD-21A)
MX-21-130-SD (SDA-2100)
MX-23-130-FV (FSD-23A)
MX-23-130-SD (SDA-2300)
MX-29-130-FV (FSD-29A)
Front Drive/Non-Drive Steer Axles – 1/Unl/P&L
MPT-318
MPT-500
MPT-510
MPT-518
MPT-526
MPT-531
MPT-543
MPT-170
MPT-1702
MPT-175
MPT-185
MPT-190
PTO – 1/Unl/P&L
516
FAT 30
Transmission – 1/Unl/P&L

Page 202 of 335 ends

MT-34-14X/P
RT-34-144/P/A
MT-40-14X/P
RT-40-145/A
MT-44-14X/P
RT-44-145/P
RT-46-169
RT-58-160
MT-52-616
MT-52-616-SP
RT-52-185/380 1,2
MT-58-616
MT-58-616-SP
RT-58-185/380 1,2
RT-70-380
MT-70-380
RZ-188
Cam P 3/Unl/P
Cam P3 2/100/P
Cam Cast Plus™ 2/100/P&L
Q+ Drum Brake™ 3/Unl/P&L
Q+ Drum Brake™ 2 2/100/P&L
ASA 3/Unl/P
ASA2 2/100/P
Hubs/Cast Drums and
Other Wheel-end
Components 1/Unl/P
Hydraulic Disc Brakes 1/Unl/P
All Other Brakes 1/Unl/P
EX+ Air Disc Brake 2/100/P&L
1 Based on stamped wear diameter max.
2 Applies to City Bus, Trolley, Shuttle Bus and Airport Shuttle only.
3 Warranty for all non-Meritor ASAs supplied by
Meritor for all Heavy Service vocations is 1/100/P .

RT-40-160/P/A 3
RT-46-160/P/A 1,3
RT-46-164EH/P/A 2,3
RT-50-160/P/A 3
RZ-166
1 U.S. only. Canadian warranty = 1/Unl/P for
combination vehicles only.
2 Axle model designated will vary according to options and variations specified on these axles. Contact
Meritor Axle Applications Engineering for details.
3 Each vehicle must have a Request for Application
Recommendation (RAR) approved by Meritor prior
to vehicle build. All RARs must identify the chassis
number or VIN. Refer to Product Information Letter
#303 and #396 for further details.
1 Axle model designated will vary according to options and variations specified on these axles. Contact Meritor Axle Applications Engineering for details. 2 Each vehicle must have a Request for Application Recommendation (RAR) approved by Meritor prior to vehicle build. All RARs must identify the chassis number or VIN.

Refer to Product Information Letter #303 and #396 for further details.

Rear Drive Tandem/Tridem Axles – 2/Unl/P&L
Brake Components Rear Drive Tandem/Tridem -
3/Unl/P&L MTA (Trailing Arm)
Major Structural Components1 5/Unl/P , 1/Unl/L
Height Control Valve 1/Unl/P&L
Shock Absorbers 2/Unl/P&L
Air Springs 2/Unl/P , 1/Unl/L
Bushings 1 5/Unl/P , 3/Unl/L
1 Raw wood applications 3/Unl/P , 1/Unl/L
(For axle and ABS coverage, refer to appropriate
product warranties.)
Trailer Air Suspension Systems
MTIS Components 5/Unl/P , 1/Unl/L
Meritor Tire Inflation System
Beam and Brackets 1 5/Unl/P , 1/Unl/L
Wheel End Systems 2
Standard System 3 1/Unl/P&L
1 9000 Series is 3/Unl/P , 1/Unl/L.
2 Includes hub, wheel seals and wheel bearings—all
systems require annual inspections and proper
documentation to ensure full coverage.
3 When installed by Meritor.
(For brake components and ABS coverage,
refer to appropriate product warranties.)
Trailer Axles
8 HEAVY SERVICE/SPECIAL TY VEHICLE

WARRANTY INFORMATION
MTC-4213
MTC-4210
MTC-4208
MTC-4206-FV (TC-38)
MTC-3106-FV (TC-137)
MTC-3111 (T-2111)
MTC-3112-CV (529 & 548C)
MTC-3116 (T-2111)
MTC-3118-FV (TC-180 & TC-180-23)
MTC-3118-CV (358)
MTC-3120-FV (TC-143)
MTC-3124 (T-2119)
MTC-3205-GV (MTC-25/247)
MTC-3205-GV (MTC-25/350)
MTC-3205-GV (RTC-25/350)
MTC-3206-FV (TC-237)
MTC-3206-CS (544)
MTC-3208-GV (RTC-50)
MTC-3209-GV (RTC-60/420)
MTC-3209-GV (RTC-60/380)
MTC-3209-GV (MTC-60/420)
MTC-3209-GV (MTC-60/380)
MTC-3212-CV (315 & 548B)
MTC-3312-FV (TC-270)
MTC-3220-FC (TC-142)
MTC-2212-CV (306)
Transfer Cases – 1/Unl/P
MGX-240
MGX-279
MGX-279D
MGX-280
MGX-285
MGX-292
MGX-314
MGX-376
MGX-377
MGX-378
MGX-380
MGX-384
MGX-402
MGX-413
MGX-448
MGX-456
MGX-478
MGX-480
MGX-487
MGX-488
MGX-505
MGX-506
MGX-514
MGX-519
MGX-520
MGX-522
MGX-524
MGX-527
MGX-528
MGX-533
MGX-534
MGX-536
MGX-537
MGX-541
MGX-545
MGX-546
MGX-550
Gearboxes – 1/Unl/P&L

Page 203 of 335 ends

n Aerial Ladder Truck
n Aerial Platform
n Ambulance
n Command Vehicle
n Crash Fire Rescue (CFR)
n Pumper
n Rapid Intervention Vehicle (RIV)
n Tanker
FL-941
FL-943
MFS-18-133A-N
MFS-18-135A-N
MFS-18-193A-N
MFS-20-133A-N
MFS-20-135A-N
MFS-20-193A-N
MFS-22-135A-N
MFS-22H-135A-N
MFS-22-193A-N
MFS-22H-193A-N
MX-19140
MX-21140
MX-21160
MX-23160
MX-23810
n Lower mileage operations (less than 20,000 miles/year) n Generally, on-road service (less than 10% off-road)
n An average of three (3) miles between starting and stopping Coverage under Meritor’s warranty require that the application of products be properly approved pursuant to OEM and Meritor approvals. Refer to TP-9441 for axles, TP-12126 for drivelines, and/or contact Meritor regarding specific application approval questions on any product line.

Fire and Emergency Vehicles
Cam 3/Unl/P
Q+ Drum Brake™ 3/Unl/P&L
ASA 3/Unl/P
Hubs/Cast Drums and Other Wheel-end Components 1/Unl/P
Hydraulic Disc Brakes 1/Unl/P
All Other Brakes 1/Unl/P
EX+ Air Disc Brake™ 2/Unl/P&L
1 Includes: bushing, seal, cam, ASA lubrication and wear coverage of 1/Unl/P .

Brake ComponentsFront Non-Drive Steer Axles – 5/Unl/P&L Front Drive Steer Axles – 2/Unl/P&L
Fire and Emergency Typically Is
RPL 4/400/P , 1/Unl/L
MXL 3/350/P , 1/Unl/L
155N 1/Unl/P
92N 1/Unl/P
Drivelines
MTC-4208
MTC-4210
MTC-4213
MTC-3111 (T-2111)
MTC-3116 (T-2111)
MTC-3124 (T-2119)
Transfer Cases – 1/Unl/P
RC-23-160
RS-23-160
RS-23-161
RS-23-186
RS-24-160
RC-25-160
RS-26-185
RS-30-185
RS-35-380
RS-25-160
Rear Drive Single Axles – 5/Unl/P&L
1 3/Unl/P&L if PreSet by Meritor.

MT-40-14X/P
MT-40-144/P
RT-40-145/A
RT-40-160/P
MT-44-14X/P
RT-44-145/P
RT-46-160/P
RT-46-164EH/P
RT-46-169
RT-50-160/P
MT-52-616
RT-52-1851
MT-58-616
RT-58-1851
MT-70-380
Rear Drive Tandem/Tridem Axles – 5/Unl/P&L
1 Each vehicle must have a Request for Application Recommendation (RAR) approved by Meritor prior to vehicle build. All RARs must identify the chassis number or VIN. Refer to Product Information Letter #303 and #396 for further details.

FIRE AND EMERGENCY WARRANTY INFORMATION
9

Page 204 of 335 ends

Transit Bus Vehicles
Cam Cast Plus™ 2/100/P&L
Q+ Drum Brake™ 1 2/100/P&L
ASA1 2/100/P
Hubs/Cast Drums and
Other Wheel-end
Components 1/Unl/P
All Other Brakes 1/Unl/P
EX+ Air Disc Brake 2/100/P&L
1 Applies to City Bus, Trolley, Shuttle Bus and Airport Shuttle only.

MC-26000
71063
79063
Brake Components Center Non-drive Axles – 5/300/P&L
n Airport Shuttle
n City Bus
n Commuter Coach
n Shuttle Bus
n Transit Bus
n Trolley
n Moderate mileage operation (less than 50,000 miles per year) n Moderate to frequent stops/starts (up to 10 stops per mile) Coverage under Meritor’s warranty require that the application of products be properly approved pursuant to OEM and Meritor approvals. Refer to TP- 9441 for axles, TP-12126 for drivelines, and/or contact Meritor regarding specific application approval questions on any product line.

Transit Bus Typically Is
FH-946
FH-941 1
MFS-12-155
MFS-13-155
RS-23-160
RC-23-161
71163
79163
RC-23-162 1
RC-23-165 1
RS-21-160
Front Drive/Non-Drive Steer Axles – 5/300/P&L
Rear Drive Single Axles – 5/300/P&L
RPL 3/Unl/P , 1/Unl/L
92N 1/Unl/P&L
MXL 1/Unl/P&L
MC-14002
MC-16003
FH-946
Drivelines
Tag Axles – 2/Unl/P&L

TRANSIT BUS WARRANTY INFORMATION
10 1 Commuter coach only – 2/Unl/P&L
1 Commuter coach only – 2/Unl/P&L

Page 205 of 335 ends

Industrial And Off-Highway Service Vehicles
n Load-On/Load-Off
n Port Tractor
n Rail Yard Spotter
n Roll-On/Roll-Off
n Stevedoring Tractor
n Trailer Spotter
n Yard Jockey
n All-Terrain Crane
n Rough Terrain Crane
n Forestry
n Material Handling
n Specialized Heavy Haul
n Specialized Mining
n Excavator
n Compactor
n Fertilizer Spreader
n Snow Blower
n Mining
n Rail Car Mover
n Loader
n Tow Tractor
n Pushback Tractor
n Low mileage operation
n Low speed vehicle speed restriction
n Vehicles are not typically licensed for highway use
n Six (6) starts/stops per mile (typical)
Coverage under Meritor’s warranty require that the application of products be properly approved pursuant to OEM and Meritor approvals. Contact Meritor regarding specific application approval questions on any product line.

RPL MXL
FF - 941
FF - 943
FF - 961
FF - 966
FG - 941
FG - 943
FL - 941
FL - 943
FN - 951
MFS-12-143A-N
MFS-12-144A-N
MFS-13-143A-N
MFS-13-144A-N
MFS-14-143A-N
MFS-16-122A-N
MFS-16-133A-N
MFS-16-135A-N
MFS-16-143A-N
MFS-18-133A-N
MFS-18-135A-N
MFS-18-193A-N
MFS-20-133A-N
MFS-20-135A-N
MFS-20-192A-N
MFS-20-193A-N
MFS-22-135A-N
MFS-22H-135A-N
MFS-22-193A-N
MFS-22H-193A-N
MON-Z0 FAMILY
Industrial And Off-Highway Service Typically Is
Drivelines – 1/Unl/P
MOB
MOC
MOD
MOE
MOF
MOG
MOH
MOR
MOS
MOT
MOX
MOY
MOZ
Planetary Axles – 1/Unl/P
Cam P 3/Unl/P
Q+ Drum Brake™ 3/Unl/P&L
ASA 3/Unl/P
Hubs/Cast Drums and Other Wheel-end Components 1/Unl/P
Hydraulic Disc Brakes 1/Unl/P
All Other Brakes 1/Unl/P
Brake ComponentsFront Non-Drive Steer Axles – 1/Unl/P

OFF-HIGHWAY SERVICE WARRANTY

INFORMATION
11 MTC-4213
MTC-4210
MTC-4208
MTC-4206-FV (TC-38)
MTC-3106-FV (TC-137)
MTC-3111 (T-2111)
MTC-3112-CV (529 & 548C)
MTC-3116 (T-2111)
MTC-3118-FV (TC-180 & TC-180-23)
MTC-3118-CV (358)
MTC-3120-FV (TC-143)
MTC-3124 (T-2119)
MTC-3205-GV (MTC-25/247)
MTC-3205-GV (MTC-25/350)
MTC-3205-GV (RTC-25/350)
MTC-3206-FV (TC-237)
MTC-3206-CS (544)
MTC-3208-GV (RTC-50)
MTC-3209-GV (RTC-60/420)
MTC-3209-GV (RTC-60/380)
MTC-3209-GV (MTC-60/420)
MTC-3209-GV (MTC-60/380)
MTC-3212-CV (315 & 548B)
MTC-3312-FV (TC-270)
MTC-3220-FC (TC-142)
MTC-2212-CV (306)
Transfer Cases – 1/Unl/P
MGX-240
MGX-279
MGX-279D
MGX-280
MGX-285
MGX-292
MGX-314
MGX-376
MGX-377
MGX-378
MGX-380
MGX-384
MGX-402
MGX-413
MGX-448
MGX-456
MGX-478
MGX-480
MGX-487
MGX-488
MGX-505
MGX-506
MGX-514
MGX-519
MGX-520
MGX-522
MGX-524
MGX-527
MGX-528
MGX-533
MGX-534
MGX-536
MGX-537
MGX-541
MGX-545
MGX-546
MGX-550
Gearboxes – 1/Unl/P&L

Page 206 of 335 ends

Coverage Exclusions
Product Description
All
The cost of any repairs, replacements or adjustments to a covered component (1) associated with noise; (2) resulting from the use or installation of non-genuine Meritor components or materials; (3) due to vibration associated with improper operation or misapplication of drivetrain components; and (4) damage resulting from corrosion.

For axle assemblies supplied by Meritor with suspension and in - terface brackets designed and/or attached by non-Meritor parties, Meritor warranty coverage does not apply to the brackets, bracket attachment methods, and field issues caused by brackets or bracket attachments to any covered component unless specified in a separate OEM agreement.

Front Axles
King Pin Bushings.

Rear Axles
Self-contained traction equalizers and oil filters. The use of NoSPIN differentials will result in the exclusion of axle shafts from warranty considerations. NoSPIN is a product of Eaton.

ASA
Boot and bushing. Bent, broken, over-torqued, missing or otherwise damaged pawl assemblies.

Cam Brake
Brake lining wear and brake shoe “rust-jacking.”
Disc Brake
Pad wear, rotor wear.

Coverage Limitations
Product Description
All
Any claim beyond 60 days from date of repair will not be accepted or honored under this warranty program. Products purchased on an incomplete vehicle (glider) are limited to one year, unlimited miles parts only (1/Unl/P).

Front Axles
Tie rod and tie rod ends limited to 3-year/300,000-mile or published vocational coverage, whichever is less. Wheel seals, gaskets and wheel bearings are covered for 1 year/unlimited miles if the wheel end equipment is supplied and assembled by Meritor.

Rear Axles
Pinion and through shaft seals limited to 3-year/300,000-mile or published vocational coverage, whichever is less, if yoke is installed by Meritor. If yoke is not installed by Meritor, then Meritor does not warrant pinion seals. Wheel seals, gaskets and wheel bearings are covered for 1 year/unlimited miles if the wheel end equipment is supplied and assembled by Meritor.

Rear Axles
The Meritor ® breather part number A-2297-C-8765 with
A-3196-J-1336 hose must be used for eligibility of any potential warranty consideration relating to contamination and/or loss of lube in axles.

Cam Brake
Limited to bracket, brake spider and camshaft structural integrity.

STEELite X30
Wearable life is up to the discard diameter of the drum.

Disc Brake
Warranty coverage for boots, seals, bushings and pins is 2/200/P .

Warranty coverage for pads is 1/100/P .

Warranty coverage on vehicles with 1,850 lb-ft engine torque and over may be reduced on individual drivetrain components. Contact your Meritor representative for specific details.
12 TERMS AND CONDITIONS

Page 207 of 335 ends

For more information:
call Ontrac at 866-668-7221
or visit meritor.com
©2018 Meritor, Inc.

Litho in USA, SP-95155
Revised 1-19 (47865/11900)
Meritor Heavy Vehicle Systems, LLC
2135 West Maple Road
Troy, Michigan 48084 USA
Product models, brands, names and trademarks depicted herein are the property of their respective owners and, except where otherwise indicated, are not in any way associated with Meritor Heavy Vehicle Systems, LLC, or any parent or affiliate, thereof.

TERMS AND CONDITIONS
(1) What is Covered by this Commercial Warranty?
Meritor Heavy Vehicle Systems, LLC warrants to the owner (“Owner”) that the components listed in this publication, which have been installed by an Original Equipment Manufacturer (“OEM”) as original equipment in vehicles licensed for on-highway use, will be free from defects in material and workmanship. This warranty coverage begins only after the expiration of the OEM’s vehicle warranty for the applicable covered components. Warranty coverage ends at the expiration of the applicable time period from the date of vehicle purchase by the first Owner, or, the applicable mileage limitation, whichever occurs first.

Duration of coverage varies by component and vocation as detailed elsewhere in this warranty statement.

Some components are warranted for parts only and the Owner must pay any labor costs associated with the repair or replacement of the component. Other components are warranted for both parts and reasonable labor to repair or replace the subject component.

Components (whether new, used or remanufactured) installed as replacements under this warranty are warranted only for the remainder of the original period of time or mileage under the original warranty.

For certain components, coverage requires the use of specific extended drain interval or synthetic lubricants. For further information about lubrication and maintenance, see Meritor publication Maintenance Manual Number l and the applicable Meritor
maintenance manual for the product in question. Other conditions and limitations applicable to this warranty are detailed below. (2) Designation of Vocational Use Required.

To obtain warranty coverage, each Owner must notify Meritor through the OEM new truck and/or trailer dealer of the intended vocational use of the vehicle into which the Meritor components have been incorporated prior to the vehicle in-service date. This notification may be accomplished by registering the vehicle through your OEM new truck and/or trailer dealer or with Meritor directly. Failure to notify Meritor of (I) the intended vocational use of the vehicle or (II) a change in vocational use from that which was originally designated, will result in the application of a one year, unlimited mileage, parts only warranty (1/Unl/P) from the initial in-service date.

A second Owner and each subsequent Owner must also notify Meritor as to the intended vocational use of the vehicle. This notification can be sent directly to Meritor or through the OEM new truck and/or trailer dealer. The duration and mileage coverage of this warranty cannot exceed the coverage extended to the first Owner after his or her initial designation of vocational use.

Coverage under Meritor’s warranty requires that the application of products be properly approved pursuant to OEM and Meritor approvals. Refer to TP-9441 for axles, SP-8320 for trailer axles, TP-12126 for drivelines, and/or contact Meritor regarding specific application approval questions on any product line.
(3) What is the Cost of this Warranty?
There is no charge to the Owner for this warranty.
(4) What is not Covered by this Warranty?
This warranty does not cover normal wear and tear; nor does it cover a component that fails, malfunctions or is damaged as a result of (I) improper installation, adjustment, repair or modification (including the use of unauthorized attachments or changes or modification in the vehicle’s configuration, usage, or vocation from that which was originally approved by Meritor), (II) accident, natural disaster, abuse, or improper use (including loading beyond the specified maximum vehicle weight or altering engine power settings to exceed the axle and/or driveline capacity), or (III) improper or insufficient maintenance (including deviation from approved lubricants, change intervals, or lube levels). This warranty does not cover any component or part that is not branded by Meritor. For vehicles that operate full or part time outside of the United States and Canada, a one year, unlimited mileage, parts only warranty (1/Unl/P) will apply. (5) Remedy.

The exclusive remedy under this warranty shall be the repair or replacement of the defective component at Meritor’s option. Meritor reserves the right to require that all applicable failed materials are available and/or returned to Meritor for review and evaluation. (6) Disclaimer of Warranty.

THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES

OR CONDITIONS, EXPRESSED, IMPLIED OR STATUTORY INCLUDING

ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
PARTICULAR PURPOSE.
(7) Limitation of Remedies.

In no event shall Meritor be liable for special, incidental, indirect, or consequential damages of any kind or under any legal theory, including, but not limited to, towing, downtime, lost productivity, cargo damage, taxes, or any other losses or costs resulting from a defective covered component.
(8) To Obtain Service.

If the Owner discovers within the applicable coverage period a defect in material or workmanship, the Owner must promptly give notice to either Meritor or the dealer from which the vehicle was purchased. To obtain service, the vehicle must be taken to any participating OEM new truck and/or trailer dealer or authorized Meritor service location.

The dealer will inspect the vehicle and contact Meritor for an evalu - ation of the claim. When authorized by Meritor, the dealer will repair or replace during the term of this warranty any defective Meritor component covered by this warranty.
(9) Entire Agreement.

This is the entire agreement between Meritor and the Owner about warranty and no Meritor employee or dealer is authorized to make any additional warranty on behalf of Meritor. This agreement allocates the responsibilities for component failure between Meritor and the Owner.

Page 208 of 335 ends

)LUHDQG5HVFXH$SSDUDWXV
Coverage:
7KUHH

<HDU0DWHULDODQG:RUNPDQVKLS
0HULWRU:DEFR$%6%UDNH6\VWHP
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The Meritor Wabco ABS brake system shall be covered by
Meritor Wabco as indicated in the attached Meritor Wabco warranty coverage description
/,0,7(':$55$17<
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Three (3) YearWarranty Period
Ends After:

The original purchaser may void this warranty in part or in its entirety if the product is repaired or replaced (a) without prior written approval of the Pierce Customer Service Department; or (b) at a facility which has not been approved by Pierce as to technical This limited warranty shall apply only if the product is properly maintained in accordance with Pierce's maintenance instructions and manuals and is used in service which is normal to the particular model. Normal service means service which does not subject the product to stresses or impacts greater than normally result from careful use. If the Buyer discovers a defect or nonconformity, it must notify Pierce in writing within thirty (30) days after the date of discovery, but in any event prior to the expiration of the warranty period.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

The exclusions listed in the attached Meritor Wabco warranty description shall apply.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4
(;&/86,212)&216(48(17,$/$1',1&,'(17$/'$0$*(6
Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

Within a reasonable time, Pierce shall repair or replace (at Pierce's option and expense) any nonconforming or defective parts. Repair or replacement shall be made only by a facility approved in advance in writing by Pierce. THIS REMEDY SHALL BE THE EXCLUSIVE AND SOLE REMEDY FOR ANY BREACH OF WARRANTY.
%8<(5
6(;&/86,9(5(0('<
Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle.
2/25/2013 WA0232
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.
',6&/$,0(562):$55$17,(6
capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

Page 209 of 335 ends

WARRANTY
Warranty coverage is essential to protecting your investment. But understanding the full details of your coverage can be challenging. This straightforward approach allows you, our valued customer, to better understand how your specific vehicle applications will be covered in your region. Our component warranty coverage is provided according to vocation/usage categories listed below. • Linehaul covers high mileage operation (over 60,000 miles/year) on well-maintained major highways of concrete or asphalt construction.
• General Service covers moderate mileage operations (less than 60,000 miles/year) on well-maintained public roads (less than 10 percent off-road) typically with less than three (3) stops per mile. • Heavy Service (Vocational) covers vehicles with more than 10 percent off-road OR moderate to frequent starts/stops typically with more than three (3) stops per mile.
• Off-Highway Service covers lower mileage operations. Vehicles are not typically licensed for highway use. • The standard aftermarket warranty for WABCO products - including WABCO Original parts, WABCO Reman Solutions, ProVia quality aftermarket parts and WABCO retrofit solutions - is one year, parts only from in-service date when purchased from ZF distributor networks or its affiliates and/or subsidiaries.

MODEL YEAR 2021 VEHICLES
How to Read Warranty Coverage (Example)
Number of Years Mileage (in thousands) Unl=Unlimited P=Parts Only P&L=Parts & Labor 3 300 P

Page 210 of 335 ends

WARRANTY - MODEL YEAR 2021 VEHICLES
¹ ZF and WABCO branded components.
2 WABCO compressors installed on Cummins, Mercedes, and DDC engines are not warranted or serviced by ZF. Please contact your respective dealer/distributor of those engines for warranty and servicing. 3 An extended warranty of 4/400/P will apply when a WABCO Trailer Control Line Filter is used in combination with a WABCO Trailer ABS valve.
• Aerial Ladder Truck
• Aerial Platform
• Ambulance
• Auto Hauler
• Beverage Truck
• Bulk Hauler
• Chip Hauler (Truck)
• Cross Country Coach
• Doubles
• Flatbed
• Front Engine Commercial
Chassis
• Front Engine Integral
Coach
• General Freight
• Grain Hauler
• Intercity Coach
• Intermodal Chassis
• Livestock Hauler
• Meat Packer
• Moving Van
• Municipal Truck
• Pipe Hauler
• Platform Auto Hauler
• Pumper
• Rear Engine Integral Coach
• Recreational Vehicles
• Refrigerated Freight
• School Bus
• Stake Truck
• Tanker
• Tanker Truck
• Triples
• Tour Bus
• Wrecker

LINEHAUL/GENERAL SERVICE VEHICLES

LINEHAUL/GENERAL SERVICE WARRANTY INFORMATION

LINEHAUL TYPICALLY IS
• High mileage operation (over 60,000 miles/year)
• Well maintained major highways of concrete or
asphalt construction

GENERAL SERVICE TYPICALLY IS
• Moderate mileage operations (less than 60,000 miles/year) • Well maintained public roads (less than 10% off-road) • Less than three (3) stops per mile
WABCO Components1
Air Management
Air Brake Valves
1/100/P&LTrailer Lift Axle Control Valve
Trailer Control Line Filter3
Air Compressors (ALL)2 2/200/P&L
Air Dryers (ALL) 3/300/P&L
Aerodynamics
OptiFlow® TrailerSkirt 2/UnU/P
OptiFlow® Trailer Tail and AutoTail 2/UnI/P
Braking Systems
ABS (Anti-Lock Braking System) Air
3/300/P&L
ABS (Anti-Lock Braking System) Hydraulic
Electronic Braking System (EBS)
Electronic Stability Control (ESC)
Roll Stability Control (RSS)
Trailer Roll Stability Support (RSS)
Trailer ABS (Anti-Lock Braking System)
3 Driveline Suspension Control
Clutch Controls 2/200/P&L
Leveling Valves
1/100/P&L
OptiRide® Automated Manual Transmission (AMT)
OptiRide® Electronically Controlled Air Suspension
(ECAS) 3/300/P&L
WABCO Components1 (cont.)
Safety
OnGuardACTIVE®
3/300/P&L
OnLane®
OnLaneALERT®
OnSide®
Trailer SafeStart™
Trailer TailGUARD™
Telematics
TrailerCAST™ Telematics Device 3/300/P&L
Wheel End Solutions
EasyFit™ Slack Adjuster 6/600/P
MAXXUS™ Truck Air Disc Brake 5/500/P&L
IVTM - Wheel Module 6/P
IVTM - All Other Products 2/P
Pan 17 and 19 Air Disc Brake 2/Unl/P and
1/Unl/L
Pan 22 Air Disc Brake 5/500/P and 1/L
TRISTOP™ D Actuator w/ IBV or IRB 6/600/P
TRISTOP™ D Actuator 3/300/P
UNISTOP™ Actuator 2/200/P
Trailer MAXX22T™ Air Disc Brake 5/500/P and 1/L

Page 211 of 335 ends

1 ZF and WABCO branded components. 2 WABCO compressors installed on Cummins, Mercedes, and DDC engines are not warranted or serviced by ZF. Please contact your respective dealer/distributor of those engines for warranty and servicing. 3 An extended warranty of 4/400/P will apply when a WABCO Trailer Control Line Filter is used in combination with a WABCO Trailer ABS valve.

WABCO Components1
Air Management
Air Brake Valves
1/100/P&L
Air Compressors (ALL)2
Air Dryers (ALL)
Trailer Control Line Filter3
Braking Systems
ABS (Anti-Lock Braking System) Air 3/300/P&L
ABS (Anti-Lock Braking System) Hydraulic 2/200/P&L
Electronic Braking System (EBS)
3/300/P&L
Electronic Stability Control (ESC)
Trailer ABS Valve3
Roll Stability Control (RSS)
Trailer Roll Stability Support (RSS)
Driveline Suspension Control
OptiRide® Electronically Controlled Air Suspension
(ECAS) 2/200/P&L
Leveling Valves 1/100/P&L
Clutch Controls 2/200/P&L
Safety
OnGuardACTIVE®
3/300/P&L
OnLane®
OnLaneALERT®
OnSide®
Trailer SafeStart™
Trailer TailGUARD™
Telematics
TrailerCAST™ Telematics Device 3/300/P&L
Wheel End Solutions
EasyFit™ Slack Adjuster 2/200/P
MAXXUS™ Air Disc Brake 1/Unl/P&L
IVTM - Wheel Module 6/P
IVTM - All Other Products 2/P
Pan 22, 19 and 17 Air Disc Brake 1/Unl/P&L
Trailer MAXX22T™ 1/Unl/P&L
TRISTOP™ D Actuator w/ IBV 3/Unl/P
TRISTOP™ D Actuator 2/200/P
UNISTOP™ Actuator 1/100/P
• Airport Rescue Fire (ARF)
• Airport Shuttle
• Asphalt Truck
• Block Truck
• Bottom Dump Trailer
Combination
• Cementing Vehicle
• City Bus
• Commercial Pick-Up
• Concrete Pumper
• Construction Material Hauler
• Crash Fire Rescue (CFR)
• Mixer
• Demolition
• Drill Rig
• Dump
• Emergency Service
• Equipment Hauling
• Flatbed Trailer Hauler
• Flatbed Truck
• Fracturing Truck
• Front Loader
• Geophysical Exploration
• Hopper Trailer Combinations
• Landscaping Truck
• Liquid Waste Hauler
• Log Hauling
• Lowboy
• Michigan Special
Gravel Trains
• Michigan Special
Log Hauler
• Michigan Special
Steel Hauler
• Michigan Special
Waste Vehicle
• Municipal Dump
• Newspaper Delivery
• Package Delivery
• Pick-up and Delivery
• Rapid Intervention
Vehicle (RIV)
• Rear Loader
• Recycling Truck
• Residential Pick-Up/Waste
• Rigging Truck
• Roll-Off
• Scrap Truck
• Semi-End Dump
• Sewer/Septic Vacuum
• Shuttle Bus
• Side Loader
• Snowplow/Snowblower
• Steel Hauling
• Tanker
• Tank Truck
• Tractors with Pole Trailers
• Tractor/Trailer with Jeeps
• Transfer Dump
• Transfer Vehicle
• Transit Bus
• Trolley
• Utility Truck
• Winch Truck

HEAVY SERVICE VEHICLES

HEAVY SERVICE (VOCATIONAL) WARRANTY INFORMATION

HEAVY SERVICE TYPICALLY IS
• On/Off road vocations (10% or more off-road) OR
• Moderate to frequent starts/stops typically more than three (3) stops per mile

Page 212 of 335 ends

WARRANTY - MODEL YEAR 2021 VEHICLES

INDUSTRIAL AND OFF-HIGHWAY SERVICE

TYPICALLY IS
• Low mileage operation3
• Vehicles are not typically licensed for highway use
¹ ZF and WABCO branded components. 2 WABCO compressors installed on Cummins, Mercedes, and DDC engines are not warranted or serviced by ZF. Please contact your respective dealer/distributor of those engines for warranty and servicing. 3 Equivalent hours of service limit: 2,000 hours for all components.

INDUSTRIAL/OFF-HIGHWAY SERVICE WARRANTY INFORMATION
WABCO Components1
Air Management
Air Brake Valves
2/Unl/PAir Compressors (ALL)2
Air Dryers (ALL)
Brake Actuation
Air/Hydraulic Actuators
2/Unl/P
Master Cylinders
Remote Actuators
Slave and Wheel Cylinders
Two Fluid Actuators
Brake Locks
Brake Locks (ALL)
2/Unl/PElectric Brake Locks
Lever Locks
Braking Systems
ABS (Anti-Lock Braking System) Air
1/100/P&L
ABS (Anti-Lock Braking System) Hydraulic
Driveline Suspension Control
Clutch Controls
1/100/P&L
Leveling Valves
Electrohydraulics & Controls
Electronic Pedals
2/Unl/PElectrohydraulic Brake Valves (EBV)
Pressure Switches
Hydraulic Braking Solutions
Accumulator Charging Valves
2/Unl/PHydraulic Throttle Controls and Switches
Modulating Brake Valves
Wheel End Solutions
EasyFit™ Slack Adjuster 2/200/P
Caliper Disc Brakes 2/Unl/P
MAXXUS™ Air Disc Brake 1/Unl/P&L
Multiple Disc Brakes 2/Unl/P
IVTM - Wheel Module 6/P
IVTM - All Other Products 2/P
Pan 22, 19 and 17 Air Disc Brake 1/Unl/P&L
TRISTOP™ D Actuator w/ IBV 3/Unl/P
TRISTOP™ D Actuator 2/200/P
UNISTOP™ Actuator 1/100/P
Market Common Application Types
Agriculture
Fertilizer Spreader, Tractor, Heavy Duty Ag
Trailers, Harvester, Sprayer, Skid Loader, Silage
Bagger, Slurry Wagons, Grain Cart
Airport Support
Pushback Tractor, Towing Tugs, Aircraft Tow
Tractor, Refueling Trucks, Food Service Trucks,
Baggage Tractors, De-Icing Equipment,
Runway Clearing Equipment
Construction
All-Terrain Crane, Rough Terrain Crane,
Excavator, Compactor, Wheel Loader, Road
Roller, Motor Grader, Articulated Dump Truck,
Rubber Tire Road Roller, Backhoe Loaders,
Haul Trucks, Scraper Rough Terrain Forklifts,
Trenchers, Drills
Forestry Logging Forwarder, Kidder, Loaders, Yard
Forklifts, Harvesters Fellers
Material Handling
Port Tractor, Rail Yard Spotter, Stevedoring
Tractor, Trailer Spotter, Yard Jockey, Scissor
Lift, Straddle Carrier, Manlift, Forklift, Boom Lift
Telebandlers, Aerial Work Platforms
Mining
Specialized Mining, Excavator, Haul Truck,
Underground Loader, Service Trucks, Wheel
Loaders, Scrapers, Load Haul Dumps,
Personnel Transports, Bolters, Scalers
Municipal
Street Sweeper, Utility Tractor, Utility Trucks,
Tree Trimmers, Dump Trucks, Tow Trucks, Flat
Bed Trucks, Winch Applications
Oil & Gas
Fracturing Trailer, Injecter Heads, Top Drives,
Jack/Lift Boats, Wireline Trucks, Load-On /
Load-Off
Rail
Railcar Mover, Track Layers, Grinders, Platform
Crane, Locomotive Railcars, Ballast Equipment,
Winch Applications

Page 213 of 335 ends

ABS, ELECTRONIC STABILITY CONTROL (ESC),
ROLL STABILITY CONTROL (RSC), OPTIRIDE®,
ONGUARD® AND ONLANE®, COLLECTIVELY
“ELECTRONICS”
Failure of electronic components due to overvoltage
condition, improper grounding, electrostatic discharge
(ESD), improper shielding, electromagnetic interference (EMI), or other wiring or installation issues. Malfunctions and failure codes caused by other electronic subsystem failures (data bus, engine, transmission, dashboard, etc.)

HYDRAULIC COMPONENTS
For certain components, brake fluid DOT3 or DOT4 is
used as the operating medium. Use of any other fluid will void all warranties associated with that component. For hydraulic braking applications the brake fluid is considered a maintenance item. Maintenance intervals are listed in TB- 1367.

COVERAGE LIMITATIONS

PRODUCT DESCRIPTION

ALL PRODUCTS
Any claim beyond 60 days from date of repair will not be accepted or honored under this warranty program.

Products purchased on an incomplete vehicle (glider) are limited to one year, 1/Unl/P .

For vehicles that operate full- or part-time outside of the United States and Canada, a 1-Year/Unlimited Miles parts only (1/Unl/P) will apply.

TOOLBOX PLUS™ DIAGNOSTIC SOFTWARE
Proper diagnostics of WABCO Electronics may require the latest version of TOOLBOX PLUS™. Additional labor due
to use of an outdated version of TOOLBOX™ software
and/or the time to purchase or install the latest version of TOOLBOX PLUS™ are not covered under product
warranty.

TERMS AND CONDITIONS

COVERAGE EXCLUSIONS

PRODUCT DESCRIPTION

ALL PRODUCTS
This Warranty shall not apply to the following, but not limited to: (1) damage to the product or its component
parts caused by incorrect use, installation, maintenance or repair, including without limitation (a) improper fit of mating components or brackets, damaged threads, cut, broken,
chafed, pinched or otherwise damaged wiring (sensors,
harnesses and connectors), (b) sensors damaged during
removal when seized in block, or associated with sensor adjustments/ alignments, and (c) damage resulting from the use or installation of non-genuine WABCO components or
materials; (2) damage to the product, its component parts, or diminished product or component part performance due to incorrect operation, deviation from approved conditions or misapplication; (3) any unauthorized disassembly of the product or its component parts including without limitation (a) obliterated, defaced or missing WABCO or WABCO
name plate, serial numbers or label identifying the device as
a ZF product or WABCO component, (b) changes to sealed
adjusting screws, and (c) opening or attempted repair of non-serviceable components; (4) malfunction
of the component d ue to internal cont amination of t he vehicle system including without limitation (a) water and other contamination damage that is due to the use of a
non-genuine air dryer cartridge or (b) valve failures due to contamination in air system, (5) complaints associated
with noise, (6) damage resulting from corrosion (including oxidation of electrical devices and connections).

AIR DRYERS
Mounting brackets (see vehicle OEM). Desiccant cartridge housing only.

AIR SYSTEM COMPONENTS
Normal wear items; Gladhand seals, dash valve knobs,
valve actuation handles, treadles, pedals.

Page 214 of 335 ends

WARRANTY - MODEL YEAR 2021 VEHICLES
(1) What is Covered by this Commercial Warranty?
ZF CV Systems North America LLC and its North American
subsidiaries and affiliates (ZF) warrant to the owner (“Owner”) that the components listed in this publication, which have been installed by an Original Equipment Manufacturer (“OEM”) as original equipment will be free from defects in material and workmanship. This warranty coverage begins from the original in-service date to the limits provided and runs concurrently with any warranties provided by OEMs and/or any distribution agreements and/or any service contracts that cover the components listed in this publication, if any. If the components listed in this publication are covered by an OEM warranty and/or service contract, then the OEM’s warranty and/ or service contract shall supersede ZF’s warranty and Owner shall comply with all OEM’s warranty and/or service contract requirements for claims under such OEM’s warranty and/or service contract until those agreements expire.

Once those agreements expire and provided the ZF warranty has not expired under the terms stated above, the ZF warranty will be in effect until its expiration date.

Warranty coverage ends at the expiration of the applicable time period from the date of vehicle purchase by the first Owner, or, the applicable mileage limitation, whichever occurs first. Duration of coverage varies by component and vocation as detailed previously in this publication.

Additional diagnostic time due to use of an outdated version of TOOLBOX™, time to purchase or install latest version of TOOLBOX™ are the responsibility of the authorized ZF distributor networks and are not covered under product warranty. Components installed as replacements under this warranty are warranted only for the remainder of the original period of time or mileage under the original warranty. (2) Designation of Vocational Use Required. To obtain warranty coverage, each Owner must notify ZF through the OEM new truck and/or trailer dealer of the intended vocational use of the vehicle into which the WABCO components have been incorporated prior to the vehicle in- service date. This notification may be accomplished by registering the vehicle through your OEM new truck and/or trailer dealer or with ZF directly. Failure to notify ZF of (I) the intended vocational use of the vehicle or (II) a change in vocational use from that which was originally designated, will result in the application of a one year, unlimited mileage, parts only warranty (1/Unl/P) from the initial in- service date. A second Owner and each subsequent Owner
must
also notify ZF as to the intended vocational use of the vehicle. This notification can be sent directly to ZF or through
the OEM new truck and/or trailer dealer. The duration and mileage coverage of this warranty cannot exceed the coverage extended to the first Owner after his or her initial designation of vocational use. Coverage under ZF’
s warranty requires that the application of
products be properly approved pursuant to OEM and ZF, approvals. (3) What is the Cost of this Warranty? There is no charge to the Owner for this warranty.
(4) What is not Covered by this Warranty? In addition to the items listed on "Coverage Exclusions," this warranty does not cover normal wear and tear, or service items; nor does it cover a component that fails, malfunctions or is damaged as a result of (a) improper handling, storage, installation, adjustment, repair or modification including the use of unauthorized attachments or changes or modification in the vehicle’s configuration, usage, or vocation from that which was originally approved by ZF, (b) accident, fire or other casualty, natural disaster, road debris, negligence, misuse, abuse, or improper use (including loading beyond the specified maximum vehicle weight or altering engine power settings to exceed the brake system capacity),
or (c) improper or insufficient maintenance (including deviation from maintenance intervals, approved lubricants, or lube levels). This warranty does not cover any component or part that is not sold by ZF. (5) To obtain service. If the owner discovers within the applicable coverage period a defect in material or workmanship, the Owner must promptly give notice to either ZF or the dealer from which the vehicle was purchased. To obtain service, the vehicle must be taken to any participating OEM dealer or ZF distributor networks' servicer. The dealer or ZF authorized servicer will inspect the vehicle and contact ZF for an evaluation of the claim. When authorized by ZF, the dealer or ZF authorized servicer will repair or replace during the term of this warranty any defective WABCO component covered by this warranty. (6) Disclaimer of Warranty and Limitation of remedies. TO THE MAXIMUM

EXTENT PERMITTED BY LAW, THE LIMITED WARRANTY SET

FORTH HEREIN IS EXCLUSIVE AND IS IN LIEU OF ALL OTHER

WARRANTIES, EXPRESS OR IMPLIED, ARISING BY OPERATION OF

LAW OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, ANY

IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A

PARTICULAR PURPOSE AND/OR WARRANTY FOR HIDDEN OR

LATENT DEFECTS, AND IN NO EVENT WILL ZF OR ANY OF ITS

AFFILIATES BE LIABLE FOR DIRECT, INDIRECT, INCIDENTAL,

PROGRESSIVE, SPECIAL, OR CONSEQUENTIAL DAMAGES OF ANY
KIND.

TERMS AND CONDITIONS

Page 215 of 335 ends

(7) Legal action. Any legal action or claim arising from or related to this Warranty, in contract or otherwise, must be commenced within one year from the accrual of that cause of action, or be barred forever. Any dispute arising in connection with this agreement shall be governed by and construed according to the laws of the State of Michigan and be brought, heard and determined exclusively in either the Circuit Court for the County of Oakland, State of Michigan or the United States District Court for the Eastern District of Michigan. The parties stipulate that the referenced venues are convenient.
(8) Remedy. The exclusive remedy under this warranty shall be the repair or replacement of the defective component at ZF's option. ZF reserves the right to require that all applicable covered components are available and/or returned to ZF
for review
and evaluation. THE MAXIMUM LIABILITY, IF ANY, OF ZF FOR ALL

DAMAGES, INCLUDING WITHOUT LIMITATION CONTRACT

DAMAGES, BREACH OF WARRANTY, NEGLIGENCE, STRICT

LIABILITY, OR OTHER TORT, IS LIMITED TO AN AMOUNT NOT TO EXCEED THE PURCHASE PRICE OF THE PRODUCT and where
indicated in the product and application warranty information above, the inclusion of labor is limited to the standard repair time. THE

PARTIES ACKNOWLEDGE AND AGREE THAT THE LIMITATION

OF DAMAGES PROVISION SET FORTH IN THIS PARAGRAPH

SURVIVES BETWEEN THE ORIGINAL END USER AND ZF EVEN IF

THE EXCLUSIVE REMEDY SET FORTH ABOVE IS DEEMED TO FAIL
OF ITS ESSENTIAL PURPOSE. ZF may change the design or make improvements to its Products without incurring any warranty obligation for previously manufactured Product .
(9) Entire Agreement. This is the entire agreement between ZF and the Owner about warranty and no, ZF employee, or dealer is authorized to make any additional warranty on behalf of ZF unless in writing and signed by an authorized representative of ZF.

Page 216 of 335 ends

About ZF Friedrichshafen AG
ZF is a global technology company and supplies systems for passenger cars, commercial vehicles and industrial technology, enabling the next generation of mobility. ZF allows vehicles to see, think and act. In the four technology domains Vehicle Motion Control, Integrated Safety, Automated Driving, and Electric Mobility, ZF offers comprehensive solutions for established vehicle manufacturers and newly emerging transport and mobility service providers. ZF electrifies different kinds of vehicles. With its products, the company contributes to reducing emissions and protecting the climate.

ZF, which acquired WABCO Holdings Inc. on May 29, 2020, now has 160,000 employees worldwide with approximately 260 locations in 41 countries. In 2019, the two then-independent companies achieved sales of €36.5 billion (ZF) and $3.4 billion (WABCO). For more information, visit: www.wabco-na.com
© 2021
ZF CV Systems North America LLC - All rights reserved - SP1375 / 2.2021 For further product details contact your distributor or the WABCO Customer Care Center at 855-228-3203.

Page 217 of 335 ends

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty applies only to the cab tubular support and mounting structures and other structural components of the cab of the vehicle model, as identified in the Pierce
specifications for the Fire and Rescue Apparatus.

This warranty does not apply to damage caused by corrosion.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4
Limited Warranty
Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Structural Integrity
Custom Cab
Ten (10) Years
- or -
100,000 Miles
Warranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

The Pierce Custom Cab shall be free from structural failures caused by defects in material and workmanship
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

Page 218 of 335 ends

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Pro-Rated Paint and Corrosion
Cab
Ten (10) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Exterior surfaces of the cab painted by Pierce shall be free from blistering, peeling, corrosion or any other adhesion defect caused by defective manufacturing methods or paint material selection.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Limited Warranty
Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty is applicable to the vehicle in the following percentage costs of warranty repair, if any:

Topcoat Durability & Appearance: Gloss, Color Retention & Cracking
0-72 months 100%
73-96 months 50%
97-120 months 25%
Integrity of Coating System: Adhesion, Blistering/Bubbling 0-36 months 100%
37-84 months 50%
85-120 months 25%
Corrosion: Dissimilar Metal and Crevice
0-36 months 100%
37-48 months 50%
49-72 months 25%
73-120 months 10%
Corrosion Perforation
0-120 months 100%
This limited warranty applies only to exterior paint. Paint on the vehicle's interior is warranted only under the Pierce Basic One Year Limited Warranty.

Items not covered by this warranty include:
(a) Damage from lack of maintenance and cleaning (proper cleaning and maintenance procedures are detailed in the Pierce operation and maintenance manual).
(b) UV paint fade.
(c) Any cab not manufactured by Pierce.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

Page 219 of 335 ends

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty applies to all of the control modules for the Command Zone system, including the full color graphic displays. Related wire harnesses, cables and connectors are not covered under this limited warranty and are instead covered under the Pierce One Year Basic Apparatus Limited Warranty.

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Five (5) Year Material and Workmanship
Command Zone Electronics
Five (5) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Command Zone control modules shall be free from failures caused by defects in material and workmanship
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

Page 220 of 335 ends

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty does not apply to related wire
harnesses, cables, and connectors, which are covered by the Pierce one (1) year basic apparatus limited warranty.

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:
54 Months Material and Workmanship
Camera System
Fifty - Four (54) monthsWarranty Period
Ends After:

The date of delivery.Warranty Begins:

This limited warranty covers repairs to correct any defect related to materials or workmanship of the Sharpvision
camera system installed on the apparatus occuring during th e
warranty period.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

Page 221 of 335 ends

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Material and Workmanship
Pierce 12V LED Strip Light
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

This limited warranty covers repairs to correct any defect related to materials or workmanship of the Pierce 12V LED strip lights installed on the apparatus occuring during the warranty period.

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty does not apply to related wire
harnesses, cables, and connectors, which are covered by the Pierce one (1) year basic apparatus limited warranty.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

Ten (10) YearWarranty Period
Ends After:

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle. 7/5/2011 WA0203
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

Page 222 of 335 ends

NEW PRODUCT WARRANTY

PARTICIPATING OEM SALES

DISTRIBUTOR SALES

LIMITED WARRANTY ON NEW ALLISON AUTOMATIC TRANSMISSIONS

USED IN EMERGENCY VEHICLE APPLICATIONS

Allison Transmission will provide for repairs or replacement, at its option, during the warranty period of each new Allison transmission listed below that is installed in an Emergency Vehicle in accordance with the following te rms, conditions, and limitations.

WHAT IS COVERED
 WARRANTY APPLIES — This warranty is for new Allison transmission models listed below installed in an Emergency Vehicle and is provided to the original and any subsequent owner(s) of the vehicle during the warranty period.  REPAIRS COVERED — The warranty covers repairs or replacement, at Allison Transmission’s option, to correct any transmission malfunction resulting from defects in material or workmanship occurring during the warranty period. Needed repairs or replacements will be performed using the method Allison Transmission determines most appropriate under the circumstances.  TOWING — Towing is covered to the nearest Allison Transmission Distributor or authorized Dealer only when necessary to prevent further damage to your transmission.
 PAYMENT TERMS — Warranty repairs, including parts and labor, will be covered per the schedule shown in the chart contained in section “APPLICABLE MODELS, WARRANTY LIMITATIONS, AND ADJUSTMENT SCHEDULE.”  OBTAINING REPAIRS — To obtain warranty repairs, take the vehicle to any Allison Transmission Distributor or authorized Dealer within a reasonable amount of time and request the needed repairs. A reasonable amount of time must be allowed for the Distributor or Dealer to perform necessary repairs.
 TRANSMISSION REMOVAL AND REINSTALLATION — Labor costs for the removal and re-installation of the transmission, when necessary to make a warranty repair, are covered by this warranty.  WARRANTY PERIOD — The warranty period for all coverages shall begin on the date the transmission is delivered to the first retail purchaser, with the following exception:

Demonstration Service - A transmission in a new truck or bus may be demonstrated to a total of 5000 miles (8000 kilometers).

If the vehicle is within this limit when sold to a retail purchaser, the warranty start date is the date of purchase. Normal warranty services are applicable to the demonstrating Dealer. Should the truck or bus be sold to a retail purchaser after these limits are reached, the warranty period will begin on the date the vehicle was first placed in demonstration service and the purchaser will be entitled to the remaining warranty.

APPLICABLE MODELS, WARRANTY LIMITATIONS, AND ADJUSTMENT SCHEDULE

WARRANTY LIMITATIONS
(Whichever occurs first)

ADJUSTMENT CHARGE TO BE

PAID BY THE CUSTOMER APPLICABLE
MODELS
Months
Transmission Miles
Or Kilometers Parts Labor
MT, MD
3000, 3200, 3500, 3700 0–24 No Limit No Charge No Charge HT with Hydraulic Controls 0–24 No Limit No Charge No Charge AT, 1000 Series, 2000 Series,
2400 Series 0–36 No Limit No Charge No Charge
HT with Electronic Controls 0–60 No Limit No Charge No Charge HD
1000 EVS, 2100 EVS, 2200 EVS
2350 EVS, 2500 EVS, 2550 EVS,
3000 EVS, 3500 EVS, 4000,
4000 EVS, 4500, 4500 EVS, 4700,
4700 EVS, 4800, 4800 EVS
0–60 No Limit No Charge No Charge

Page 1 of 2 ends

Page 223 of 335 ends

WHAT IS NOT COVERED
 DAMAGE DUE TO ACCIDENT, MISUSE, or ALTERATION — Defects and damage caused as the result of any of the following are not covered:
— Flood, collision, fire, theft, freezing, vandalism, riot, explosion, or objects striking the vehicle; — Misuse of the vehicle;
— Installation into unapproved a pplications and installations; — Alterations or modification of th e transmission or the vehicle, and — Damage resulting from improper storage (refer to long-term st orage procedure outlined in the applicable Allison Service Manual) — Anything other than defects in Allison Transmission material or workmanship NOTE: This warranty is void on transmissions used in vehicles currently or previously titled as salvaged, scrapped, junked, or totale d.  CHASSIS, BODY, and COMPONENTS — The chassis and body company (assemblers) and other component and equipment manufacturers are solely responsible for warranties on the chassis, body, component(s), and equipment they provide. Any transmission repair caused by an alteration(s) made to the Allison transmission or the vehicle which allows the transmission to be installed or operated outside of the limits defined in the appropriate Allison Installation Guideline is solely the responsibility of the entity making the alteration(s).  DAMAGE CAUSED by LACK of MAINTENANCE or by th e USE of TRANSMISSION FLUIDS NOT RECOMMENDED in the OPERATOR’S MANUAL — Defects and damage caused by any of the following are not covered:
— Failure to follow the recommendations of the maintena nce schedule intervals applicable to the transmission; — Failure to use transmission fluids or maintain transm ission fluid levels recommended in the Operator’s Manual.  MAINTENANCE — Normal maintenance (such as replacement of filters, screens, and transmission fluid) is not covered and is the owner’s responsibility.
 REPAIRS by UNAUTHORIZED DEALERS — Defects and damage caused by a service outlet that is not an authorized Allison Transmission Distributor or Dealer are not covered.
 USE of OTHER THAN GENUINE ALLISON TRANSMISSION PARTS — Defects and damage caused by the use of parts that are not genuine Allison Transmission parts are not covered.  EXTRA EXPENSES — Economic loss and extra expenses are not covered. Examples include but are not limited to: loss of vehicle use; inconvenience; storage; payment for loss of time or pay; vehicle rental expense; lodging; meals; or other travel costs.  “DENIED PARTY” OWNERSHIP — Warranty repair parts and labor costs are not reimbursed to any participating or non-participating OEMs, dealers or distributors who perform warranty work for, or on behalf of, end users identified by the United States as being a “denied party” or who are citizens of sanctioned or embargoed countries as defined by the U.S. Department of Treasury Office of Foreign Assets Control. Furthermore, warranty reimbursements are not guaranteed if the reimbursement would be contrary to any United States export control laws or regulations as defined by the U.S. Department of Commerce, the U.S. Department of State, or the U.S. Department of Treasury.

OTHER TERMS APPLICABLE TO CONSUMERS AS DEFINED by the MAGNUSON-MOSS WARRANTY ACT This warranty gives you specific legal rights and you may also have other rights which vary from state to state.

Allison Transmission does not authorize any person to create for it any other obligation or liability in connection with these transmissions.

ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE APPLICABLE TO THESE TRANSMISSIONS IS LIMITED IN DURATION TO THE DURATION OF THIS WRITTEN WARRANTY.

PERFORMANCE OF REPAIRS AND NEEDED ADJUSTMENTS IS THE EXCLUSIVE REMEDY UNDER THIS WRITTEN WARRANTY OR ANY IMPLIED WARRANTY. ALLISON TRANSMISSION SHALL NOT BE LIABLE FOR INCIDENTAL OR

CONSEQUENTIAL DAMAGES (SUCH AS, BUT NOT LIMITED TO, LOST WAGES OR VEHICLE RENTAL EXPENSES) RESULTING FROM BREACH OF THIS WRITTEN WARRANTY OR ANY IMPLIED WARRANTY.** ** Some states do not allow limitations on how long an implied warranty will last or the exclusion or limitation of incidental or consequential damages, so the above limitations or exclusions may not apply to you.

OTHER TERMS APPLICABLE TO OTHER END-USERS

THIS WARRANTY IS THE ONLY WARRANTY APPLICABLE TO THE ALLISON TRANSMISSION MODELS LISTED

ABOVE AND IS EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALLISON

TRANSMISSION DOES NOT AUTHORIZE ANY PERSON TO CREATE FOR IT ANY OTHER OBLIGATION OR LIABILITY IN CONNECTION WITH SUCH TRANSMISSIONS. ALLISON TRANSMISSION SHALL NOT BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM BREACH OF THIS WARRANTY OR ANY IMPLIED WARRANTY.

QUESTIONS
If you have any questions regarding this warranty or the performance of warranty obligations, you may contact any Allison Transmission Distributor or Dealer or write to:

Allison Transmission, Inc.

P.O. Box 894
Indianapolis, IN 46206-0894
Attention: Warranty Administration PF-9

Form SE0616EN (201009)

Page 2 of 2 ends

Page 224 of 335 ends

Warranty Begins:

The transmission cooler shall be free from component or structural failures caused by defects in material and/or workmanship. Collateral damage up to $10,000 per
occurrence is available for the first three (3) years.
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; (d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Five (5) Years on Oil Cooler and three (3) years on collateral damage coverage
Warranty Period
Ends After:

Fire and Rescue Apparatus
Coverage:

Five (5) Year Material and Workmanship - Transmission Oil Cooler Three (3) Year Collateral Damage Coverage

1. LIMITED WARRANTY
The original purchaser may void this warranty in part or in its entirety if the product is repaired or replaced (a) without prior written approval of the Pierce Customer Service Department; or (b) at a facility which has not been approved by Pierce as to technical Limited Warranty
Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The date of delivery to the first retail purchaser.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty does not cover repair due to accidents,
misuse, and excessive vibration, flying debris, storage damage (freezing), negligence or modification. This warranty is void if any modification or repairs are performed without authorization. This also voids any future warranty.

This warranty does not cover cost of maintenance or repairs due to lack of required maintenance services as
recommended. Performance of the required maintenance
and use of proper fluids are the responsibility of the owner.

Towing is covered to the nearest distributor or authorized dealer only when necessary to prevent further damage to your transmission.

Labor costs for the removal and reinstallation of goods may be covered when necessary to make repairs. Please contact your OEM for authorization.

Replacement of cooler during the warranty period is limited to 100% of reasonable labor costs up to a maximum of $700 to remove, replace, or repair the oil cooler.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle.
2/22/2012 WA0216
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

2. DISCLAIMERS OF WARRANTIES
capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

Page 225 of 335 ends

United Plastic Fabricating, Inc. (hereinafter called “UPF”) warrants each POLY-TANK®, Booster/Foam Tank POLYSIDE® Wetside Tank, Integrator Tank/Body, ELLIPSE™ Elliptical Tank, Ellip-T-Tank Tank and DEFENDER™ Skid Tank to be free from defects in material and workmanship for the service life of the original vehicle (vehicle must be actively used in an emergency re- sponse for fire suppression). All UPF Tanks must be installed and operated in accordance with the UPF Installation and Operating Guidelines. Failure to do so can void the warranty.

Every UPF Tank is inspected and tested before leaving our facility. Should your UPF Tank require service, please notify UPF via email, fax, in writing or by calling UPF at 1-978-975-4520. Please provide the serial number, a de - scription of the service request, the location along with the phone number and name of the contact person. Our goal is to have scheduled work completed within a reasonable time period.

Under a valid warranty claim, UPF will cover the cost to repair the UPF Tank including the customary and reasonable costs to make the tank accessible such as the removal and reinstallation of the tank if authorized in advance (pre-approved) by UPF. The warranty will not cover tanks that have been im- properly installed, operated, misused, abused, or modified from its intended or designed use. Serial number must not have been altered, defaced or re - moved. Tanks that are not stored or installed properly which results in the tank suffering UV damage will not be covered by this agreement.

Should UPF determine that the service claim is valid under this warranty for a tank located outside of the United States and Canada, UPF will assume the costs for labor and material for the warranty repair as described above plus all travel costs to the U.S. port of embarkation. Costs for airline travel outside of the U.S. and Canada will not be the responsibility of UPF.

In the event the tank shall become stationed in an area of the world that is considered to be a war zone or where unsafe conditions exist for the safe passage of United States Nationals, as reported by the United States Depart- ment of State, (http://www.state.gov), and a request to perform service or warranty repairs, UPF reserves the right to refuse to honor such requests. It is the purchaser’s responsibility to relocate the tank to an area where such repairs can be performed without undue risk to UPF employees or their des - ignee. UPF will make every reasonable effort to support our products though alternative means.

For Ellipse™ elliptical tanks, a separate five year warranty provided by the subcontractor is applied to the sub-frames, chute linings (rubber isolation strips) and metal components. The stainless steel wrap provided by UPF shall be warranted by the subcontractor performing the wrap installation in accordance with their warranty in place at the time of the installation. UPF will not be liable for any warranty costs associated with the wrap, sub-frames, chute linings (rubber isolation strips) and metal components but will assist with all claims on behalf of its customer.

For PolySide® wetsided tanks and Integrator™ Tank/Body units, all polypro- pylene components related to the tank shall carry the standard UPF lifetime FOR: POLY-TANK®, POLYSIDE®, INTEGRATOR™, ELLIPSE™, ELLIP-T-TANK™ & DEFENDER™

WARRANTY
UNITED PLASTIC FABRICATING, INC.

LIFETIME SERVICE WARRANTY
Continued on back
E f f e c t i v e 1 A u g u s t , 2 0 0 9

Page 226 of 335 ends

service warranty. Other polypropylene components, including but not limited to compartments, wheel wells, fenders and other body related components shall be warranted by UPF for a period of ten years. The warranty for the PolySide® and Integrator™ units excludes paint or hardware, which shall be covered by the manufacturer of the paint/hardware.

All UPF tanks 50 gallons or less utilized for non-fire applications and installed on specialty vehicles such as ATVs, trailers, boats, etc. are covered under a separate warranty policy available from UPF. Further, UPF Protector™ foam and water trailers are warranted under a separate warranty policy available from UPF.

This UPF warranty is transferable within the United States only with prior writ- ten approval by UPF (except an original apparatus manufacturer may assign this warranty to the first titled owner/lessee of the apparatus).

UPF will NOT reimburse any unnecessary work and/or work that has not been pre-approved. Any and all third party charges must be pre- authorized and approved in writing by UPF prior to commencing the work. Any unauthorized third party repairs, alterations, actions or modi- fications will not be covered and can void the warranty. UPF will be the sole determining authority as to whether a service claim will be valid and covered under this warranty.

In no event will UPF be liable for an amount in excess of the purchase price of the booster/foam tank at the time of manufacture or for any loss or dam - age, whether direct, indirect, incidental, consequential, or otherwise arising out of failure of its product. Loss of contents (water, foam, etc.) shall not be the responsibility of UPF. Further, UPF is not responsible for costs associated with service repairs to chassis, sub-frames, bodies, valves, dumps, hoses, pressure vacuum vents, and other components (i.e. liquid level transducers, etc.). Further, UPF will not cover the cost for travel of the vehicle to and from a repair facility.

This warranty contains the entire warranty. It is the sole warranty and price agreements or representation, whether oral or written, are either merged herein or expressly cancelled. UPF neither assumes, nor authorizes any per- son supposing to act on its behalf to change, nor assume for it, any warranty or liability concerning its product.

This warranty gives you specific legal rights, and you may also have other rights which vary from state to state. Some states do not allow exclusion or limitation or incidental or consequential damage, so the above limitation or exclusion may not apply to you. Since some states do not allow limitations on the length of an implied warranty, the above limitation may not apply to you.

THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, WHICH EX - TEND BEYOND THE DESCRIPTION OF THE FACE HEREOF. THERE IS

NO EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR A
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. ADDITION -

ALLY, THIS WARRANTY IS IN LIEU OF ALL OTHER OBLIGATION OR LIABILITIES ON THE PART OF UPF.

FOR: POLY-TANK®, POLYSIDE®, INTEGRATOR™, ELLIPSE™, ELLIP-T-TANK™ & DEFENDER™

WARRANTY
UNITED PLASTIC FABRICATING, INC.

POLY-TANK®,& POLYSIDE® are registered trademarks of UPF, Inc. INTEGRATOR™, ELLIPSE™, ELLIP-T-TANK™ & DEFENDER™ are trademarks of UPF, Inc. © 08/01/09 UPF, Inc. Printed in the USA

Page 227 of 335 ends

2 6 0 0 A M E R I C A N D R I V E • A P P L E T O N , W I 5 4 9 1 2- 2 0 1 7 • 9 2 0- 832 - 3 000

P I E R C E M A N U F A C T U R I N G I N C .

B U L L E T I N

TO: All Dealer Service Representatives

From: Kevin Hanegraaf

DATE: January 4, 2010

RE: UPF Tank Warranty Policy – Truck in Accident

Service Topic #292

To keep the UPF tank warranty valid on trucks that have been involved in a vehicular accident, it is UPF’s policy that the customer must remove the tank from the truck and send it back to one of UPF’s facilities for inspection. In the event that this does not take place, the warranty will be considered null and void.

The customer must remove and send the tank back to UPF for inspection in order to maintain the original warranty coverage, at which time it will be:
- Filled with water
- Visually inspected
- Ultraviolet spark tested on articulating test stand in the dark - Recommendation for repairs if necessary provided by UPF - Fully evaluated and repaired by UPF

If your customer chooses to leave the tank on the truck and wants a technician to inspect and/or repair the tank in the field, then the warranty is no longer in effect.

This direction is upheld by UPF because the technician cannot inspect the entire tank when it is still installed on the truck.

Note: This memo is intended to relay the information Pierce has received on UPF’s tank warranty for trucks that are in a vehicular accident. In the event of an actual claim, we direct you to consult with UPF’s service Manager Maura Watts (800-638-8265 x253)

Page 228 of 335 ends

1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty applies only to the body tubular support and mounting structures and other structural components of the body of the vehicle model, as identified in the Pierce
specifications for the Fire and Rescue Apparatus.

This warranty does not apply to damage caused by corrosion.

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Structural Integrity
Apparatus Body
Ten (10) Years
- or -
100,000 Miles
Warranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

The apparatus body shall be free from structural failures caused by defects in material and workmanship
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

Page 229 of 335 ends

A & A Manufacturing Co., Inc. 2300 S. Calhoun Road · New Berlin, WI 53151 · Phone (262) 786-1500 · Fax (262) 786-3280 Pierce Warranty Statement for Gortite Roll Up Doors Rev 2/24/2011

All mechanical components of the door shall be warranted to be free from defects in materials and workmanship for the lifetime of the vehicle. All parts covered under this warranty shall be to the original owner.

A&A manufacturing warrants that painted doors shall be free of blistering, peeling, bubbling, or any other adhesion defect caused by defective manufacturing methods or paint material selection. The time period for the coverage shall be 6 years from date of door shipment to Pierce. Satin anodized finish doors shall be warranted for 6 years against corrosion defects from date of door shipment to Pierce. Replacement of decals/Scotchlite is not covered.

The maximum amount A&A will reimburse for labor is $60.00 per hour and the maximum amount of time allowed for repair is as follows:

Door 1.0 Hr.

Slat Replacement 1.0 Hr.

Pennant Plate Replacement 1.0 Hr.

Roller Replacement .5 Hr.

Seal Replacement .5 Hr.

Switch/Magnet Replacement 1.0 Hr.

Travel Time 4.0 Hr.

Page 230 of 335 ends

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty applies to the PUC Pump and all its components manufactured under the Pierce brand, including the integrated pump transmission. Items not manufactured under the Pierce brand such as valves, relief valves or wear items such as wear rings, seals, bearings or costs of
removal, transporting, storing, or reinstallation are not covered by this six-year limited warranty and are instead covered under the Pierce Basic One Year Limited Warranty.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

Seven (7) Years
- or -
3000 Pump Hours
Warranty Period
Ends After:

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle. 4/21/2022 WA0390
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

Fire and Rescue Apparatus
Coverage:

Seven (7) Year Material and Workmanship
PUC-NG Pump
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

The PUC-NG Pump, intergrated pump transmisison, and its components manufactured under the Pierce brand in its Fire and Rescue Apparatus vehicle shall be free from failures caused by defects in material and workmanship

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the purchaser who first puts the product in service ("Buyer"):
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Page 231 of 335 ends

Warranty Begins:

Stainless steel piping shall be free from structural failures caused by defects in material and workmanship, or
perforation caused by corrosion.
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; (d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce.

Ten (10) Years
- or -
100,000 Miles
Warranty Period
Ends After:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Material and Workmanship
Stainless Steel Piping

The date of the original purchase invoice (issued when the product ships from the factory).

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

Pierce’s obligation under this warranty is limited to repairing or replacing without charge, as Pierce may elect, the
stainless steel piping or components which Pierce
determines to have failed due to defective material and workmanship, or perforation caused by corrosion.

This warranty does not cover the use of fluoroprotein (FP) type foam. The sodium chloride within FP foam can cause long-term damage to system components if not thoroughly flushed immediately after use.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

3. BUYER'S EXCLUSIVE REMEDY.

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle.
3/22/2012 WA0035
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

2. DISCLAIMERS OF WARRANTIES
capability. Any repairs, modifications, alterations or aftermarket parts added after manufacture without the authorization of Pierce may void this warranty.

Page 232 of 335 ends

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

Conditions and
Exclusions:

See Also
Paragraphs
2 thru 4

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

One (1) Year & Five (5) YearWarranty Period
Ends After:

Note: Any Surety Bond, if a part of the sale of the vehicle as to which this limited warranty is provided, applies only to this Pierce Basic One Year Limited Warranty for such vehicle, and not to other warranties made by Pierce in a separate document (if any) or to the warranties (if any) made by any manufacturer (other than Pierce) of any part, component, attachment or accessory that is incorporated into or attached to the vehicle.
1/30/2013 WA0231
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES

ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

Fire and Rescue Apparatus
Coverage:

One (1) Year Material and Workmanship Foam System & Five (5) Year Material and Workmanship Control Head
Limited Warranty
Notwithstanding anything to the contrary herein, Pierce makes no warranty whatsoever as to:

Limited warranty 1 year parts and labor for for the foam system and 5 years parts and labor for the control head.

1. LIMITED WARRANTY
(b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot; Subject to the limitations and exclusions set forth below, Pierce Manufacturing provides the following warranty to the Buyer:
(c) any vehicle, chassis or component, part, attachment or accessory that has been repaired, altered or assembled in any way by any person or entity other than Pierce which, in the sole judgment of Pierce, adversely affects the performance, stability or purpose for which it was manufactured; or
(a) any integral parts, components, attachments or trade accessories of or to the product that are not manufactured by Pierce, including but not limited to engines, transmissions, drivelines, axles, water pumps and generators; with respect to all such parts, components, attachments and accessories, Pierce shall assign to Buyer the applicable warranties, if any, made by the respective manufacturers thereof; The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

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1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This limited warranty is applicable to the vehicle in the following percentage costs of warranty repair, if any:

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Ten (10) Year Pro-Rated Paint and Corrosion
Custom Body
Ten (10) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Exterior surfaces of the body shall be free from blistering, peeling, corrosion or any other adhesion defect caused by defective manufacturing methods or paint material selection. (d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

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1. LIMITED WARRANTY
THE WARRANTY SET FORTH IN PARAGRAPH 1 IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY PIERCE. PIERCE HEREBY DISCLAIMS AND EXCLUDES ALL

OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY,

INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ANY

WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE.

THIS LIMITED WARRANTY MAY NOT BE ASSIGNED OR OTHERWISE

TRANSFERRED BY THE BUYER TO ANY SUBSEQUENT USER OR PURCHASER OR TO ANY OTHER PERSON OR ENTITY.

This warranty does not cover damage from lack of
maintenance and cleaning (proper cleaning and maintenance procedures are detailed in the Pierce operation and
maintenance manual).

Conditions and
Exclusions:

Fire and Rescue Apparatus
Coverage:

Three (3) Year Material and Workmanship
Goldstar® Gold Leaf Lamination
Three (3) YearsWarranty Period
Ends After:

The date of the original purchase invoice (issued when the product ships from the factory).Warranty Begins:

Each Goldstar® gold leaf lamination shall be free from
defects in material and workmanship.
(d) products or parts which may in the ordinary course wear out and have to be replaced during the warranty period, including, but not limited to, tires, fluids, gaskets and light bulbs. Pierce assumes no responsibility for the assembly of its parts or subassemblies into finishing products or vehicles unless the assembly is performed by Pierce. (b) any vehicle, chassis, or component, part, attachment or accessory damaged by misuse, neglect, fire, exposure to severe environmental or chemical conditions, acidic environment, improper maintenance, accident, crash, or force majeure such as natural disaster, lightning, earthquake, windstorm, hail, flood, war or riot;

4. EXCLUSION OF CONSEQUENTIAL AND INCIDENTAL DAMAGES.

Notwithstanding anything to the contrary herein or in any agreement between Pierce and Buyer, IN NO EVENT SHALL PIERCE BE LIABLE FOR ANY CONSEQUENTIAL,

INCIDENTAL, SPECIAL, INDIRECT, OR PUNITIVE DAMAGES WHATSOEVER,

WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHER THEORY OF LAW

OR EQUITY, WITH RESPECT TO VEHICLES OR OTHER PRODUCTS SOLD BY

PIERCE, OR THEIR OPERATION OR FAILURE TO OPERATE, OR ANY DEFECTS

THEREIN, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATED THERETO,

REGARDLESS OF WHETHER PIERCE HAS BEEN INFORMED OF THE POSSIBILITY OF ANY SUCH DAMAGES. Without limiting the generality of the foregoing, Pierce specifically disclaims any liability for property or personal injury damages, penalties, damages for lost profits or revenues, loss of vehicles or products or any associated equipment, cost of substitute vehicles or products, down-time, delay damages, any other types of economic loss, or for any claims by any third party for any such damages.

3. BUYER'S EXCLUSIVE REMEDY.

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JROGHQVWDWHĆUHFRP

DEALER SUPPLIED

PRODUCTS SERVICES
Exhibit “D”
5 AND
/OR

Page 236 of 335 ends

1 DEALER SUPPLIED PRODUCTS and/or SERVICES
The following items and/or services will be provided by Golden State Fire Apparatus Inc. (GSFA) prior to final delivery:

LICENSED MANUFACTURER
The State of California Vehicle Code, section 11701 requires “ every manufacturer of a vehicle subject to registration shall make application to the Department of Motor Vehicles (DMV) for a license containing a general distinguishing number” . The manufacturer has a current license at time of proposal and shall provide a copy upon request. Temporary licenses are not acceptable.

LICENSED DEALERSHIP
The State of California Vehicle Code, section 11701 requires a “dealer in vehicles of a type s ubject to registration, shall make application to the Department of Motor Vehic les (DMV) for a license containing a general distinguishing number” . Golden State Fire Apparatus, Inc. has a current license at time of bid as outlined above and is available upon request. Temporary licenses are not acceptable.

LICENSED SALES REPRESENTATIVE
The State of California Vehicle Code, section 11800 requires that it shall be “unlawful for any person to function as a vehicle salesperson without having first procured a lice nse issued by the Department of Motor Vehicles (DMV)” . The representative ha s a curr ent vehicle salesperson’s license at time of proposal and shall provide a copy upon request. Temporary licenses are not acceptable.

VEHICLE REGISTRATION
The State of California Vehicle Code section 11739 requires that the “dealer of a new motor v ehicle sale is responsible for applying for the title, securing vehicle registration, and obtaining license plates for the Customer” through the Department of Motor Vehicles (DMV) . Golden State Fire Apparatus, Inc. is a factory-authorized dealer of the vehicle bein g sold and is authorized to register with the State of California as a new vehicle manufacturer.

GSFA will make all necessary applications and complete all transf er papers, including applying for California Exempt “E” license plates.

WEEKLY PROGRESS PHOTOGRAPHS
GSFA w ill provide weekly photograph s of the apparatus or the major components as they are being constructed. The photographs will commence at the start of the manufacturing process and will continue through production by the manufacturer. The reports will show the progress of the ap paratus through the course of each week. Special attention will be given to show the unique features and aspects of the apparatus as construction progresses.

PRE-CONSTRUCTION, FACTORY TRIP
A pre-construction trip to the manufacturing facility will be provided fo r three (3 ) C ustomer representative(s). The intent of this trip is to review and finalize, in detail, the specifications prior to the start of production . The pre-construction trip will have a duration of four (4) days and three (3 ) nights and be scheduled at times mutually agre ed upon between GSFA and the Customer. Costs for airfare, lodging, meals, and ground transportation while at the manufacturer’s location will be the responsibility of GSFA. Air travel will be from one of the following airports: Sacramento, San Francisco, or San Jose.

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2 Costs such as Customer ground transportation in California, Customer airport parking, Customer luggage fees and Cust omer incidentals while trav eling to the factory will be the r esponsibility of the Customer.

Flight reservations are non -refundable and in the event of a cancellation after booking, the C ustomer will be responsible for all costs associated with this cancellation, which may include not only the original ticket cost but also any change or cancellation fees imposed by the airline and/ or travel agency. Flight reservations are also non-transferable.

FINAL INSPECTION, FACTORY TRIP
A final in spection trip to the manufacturing facility will be provided for three (3 ) Customer representative(s). The intent of this trip is to ens ure that the apparatus is built to specification and to detect any deficiencies that require correction. The final inspection trip will have a duration of four (4) days and three (3) nights and be sched uled at times mutually agre ed upon between GSFA and the Customer. Costs for airfare, l odging, meals, and ground transportatio n while at t he manufacturer’s location will be the responsibility of GSFA. Air travel will b e from one of the following airports:

Sacramento, San Francisco, or San Jose.

Costs such as Customer ground transportation in California, Customer airport parking, Customer luggage fees and Cust omer incidentals while traveling to the factory will be the responsibil ity of the Customer.

Flight reservations are non -refundable and in the event of a can cellation after booking, the C ustomer will be responsible for all costs associated with this cancellation, which may include not only the original ticket cost but also any change or cancellation fees imposed by the airline and/ or travel agency. F light reservations are also non-transferable.

DELIVERY TO AUTHORIZED SERVICE FACILITY
GSFA will, at their exp ense, deliver the apparatus (including any a pplicable equipment, spar e parts, and supplies) to their Northern California facility in Sacramento for a dealer preparation inspection.

To ensure proper break-in of all components while still under warranty, the apparatus shall be delivered under its own power - rail or truck freight shall not be acceptable.

PRE-DELIVERY SERVICE
After transportation from the factory and prior to delivery, t he apparatus will receive a pre -delivery service to confirm proper operation and correction of any issues found as a result of said inspection. The Golden State Fire Apparatus, Inc. pre-delivery service consists of the following:

• Engine Compartment and Undercarriage – Check for any broken mounting brackets and inspect for correct capacities of the following (if applicable): engine oil, coolan t, power steering fluid, washer reservoir fluid, transmission fluid, rear end fluid, pump transmission oil, and primer oil.

• Interior – Operate all doors, windows, and locks for proper adjustment. Check upholstery.

• Exterior – Repair reasonable paint scrat ches or chips . Tighten any l oose hardware and inspe ct tires and wheels for proper pressure and lug torquing.

• Road Test – With the water tank (if applicable) full, the apparatus wi ll be driven approximately twenty miles which allows the drive train components to get up to operating temperature. Road test will be on both city and highway roads . A DOT compliant brake t est will be conducted to ensure the system is holding air. The brake condition and wheel seals will also be inspected.

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3 • Electrical - Operate all lights, sirens, and other electrical accessories to verify operation.

• Pump - If applicable, vacuum tes t the pump to hold for 15 minutes . After vacuum test, operate the relief valve, transfer valve and check pump shift . Check water tank for leaks an d inspect water level gauge for calibration. With discharge caps loose, rapid test all individual gauges an d main gauges for calibration. Lubricate valve rods.

• Foam System – If applicable, tighten caps and connect foam lines. Test selector, valves, metering valve and operation of foam system (including flush).

• Fuel Tank - Fuel tank will be filled at the dealership location prior to final delivery.

• DEF Tank - DEF tank will be filled at the dealership location prior to final delivery.

• Wash - The apparatus will be thoroughly washe d at the dealership location pri or to final delivery.

FINAL DELIVERY (CUSTOMER LOCATION)
GSFA wi ll, at the ir ex pense, d eliver the Product (including any ap plicable equipment , spare parts, and supplies) to the Custom er specified address once compl eted. Prior to delivery of the Pro duct, Customer agrees to provide proof of liability and physical damage insurance to GSFA. GSFA will not release the Product to the Customer until such proof of insurance is provided.

It is the responsibility of the Customer to have any outstanding balance due, paid in ful l to GSFA, prior to or at the time that the Product is complete and read y to deliver. If payment is late or delivery is delayed pending payment, a daily finance charge of $ 150.00 and a daily storage fee of $50.00 may apply until such payment is received.

Due to in surance liability, the Product will not be delivered without full acceptance and full payment (or prior written agreement between the Customer and GSFA).

END OF EXHIBIT “D”

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15.A.

AGENDA

STAFF REPORT

MEETING DATE: 1/16/2024 AGENDA SECTION: PUBLIC HEARING

SUBJECT:

Public Hearing and consideration of approval of Resolution 24-02-R for City of Hanford water rate adjustments effective February 1, 2024 and continue the public hearing for wastewater and stormwater rates until February 6, 2024.

RECOMMENDATION:

Recommendation: Staff recommends Council hold a Public Hearing and consider approval of Resolution 24-02-R for City of Hanford water rate adjustments effective February 1, 2024 and continue the public hearing for wastewater and stormwater rates until February 6, 2024.

Recommended Motion: I move to adopt Resolution 24-02-R for City of Hanford water rate adjustments effective February 1, 2024 and continue the public hearing for wastewater and stormwater rates until February 6, 2024.

BACKGROUND:

City Council has the authority to approve rate changes when necessary to ensure the continued recovery of costs for services and to secure reinvestment into the system infrastructure for long term sustainability. As part of the recommended approval today, Council would be accepting the “Water, Wastewater, and Stormwater Utility Rate Study 2023”, dated November 7, 2023 approving water rates, and continuing the public hearing for wastewater and stormwater rates. Due to correspondence received since notices were sent out related to stormwater rate increases, further review by staff and the City Attorney is recommended before adoption of the wastewater and stormwater rates.

It has been over five years since water rate adjustments. The last water rate increase was July 1, 2018 (adopted in Resolution No. 15-60-R on December 15, 2015). The last sewer/storm rate increase was July 1, 2011 (adopted in Resolution No. 09-77-R on November 17, 2009) over thirteen years ago. Without updating rates the City will not have long term sustainability to keep up with costs of maintenance, capital and increased costs of doing business.

Proposition 218 (Prop 218), approved in 1996, adds Article XIII D (Voter Approval for Local Tax Levies) to the California Constitution. All property-related fees, such as water, wastewater and storm drain fees and charges, must meet Prop 218’s requirements. It applies to most utility charges and fees; however, electric and gas utility charges were specifically exempted from the definition of property-related charges in the statute. The City is required to provide notice of proposed increases to the sewer, water and refuse collection service fees and charges to all affected ratepayers and record receipt of all written protests during a public hearing. Prop 218 prohibits increases to fees and

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charges if a majority of the affected ratepayers submit written opposition to proposed increases.

The City's consultant, Lechowicz & Tseng Municipal Consultants and staff provided Council with a look at the needs of the water, wastewater and storm drain enterprises at the September 19, 2023 and November 7, 2023 City Council Meetings. After receiving Council direction and authorization to proceed at those meetings, staff and the consultant with review by the City Attorney sent out notification to all landowners and utility customers within the City as required by the Proposition 218 process.

Utility operations in water, sewer and storm drain are self-supporting enterprise funds that provide services for a fee. Charges for service through rates are the primary source of funding for operations and also fund a significant portion of the capital improvement program which includes the debt service (principal and interest) for bonds issued to fund these projects. Developer fees are the other funding source for capital projects. However, impact fees paid by developers are legally limited to addressing the impacts caused by the impacts of the developers' projects. For example, a project's impact fees may not be utilized to address normal wear and tear to infrastructure improvements that are not caused by that project.

The City's utilities are faced with many current and future challenges including aging infrastructure, preserving groundwater supply, adapting to changing water and wastewater quality regulations, and increased operational and capital costs. A growing proportion of Hanford's utility infrastructure is aging beyond its expected useful life. For example, the expected useful life of water distribution pipeline is 40 years. Hanford's operational costs are not immune to the impacts of inflation, which increase construction and equipment costs as well. In addition, adequate fund balance must be maintained to maintain applicable bond requirements and sustain operations in event of a fiscal emergency.

Notices by mail and on the City's website were posted before the 45-day notice requirement for the public hearing on January 16, 2024. The proposed rates for water are recommended to go into effect as of February 1, 2024 for the February 2024 utility bill. Attachment 'A' “Water, Wastewater, and Stormwater Utility Rate Study 2023”, dated November 7, 2023, includes details on the rates.

Subsequent increases would go into effect on July 1 from 2024 through 2027. Wastewater and stormwater rates will be further considered at a continued public hearing on February 6, 2024 with an effective date to be determined.

FISCAL IMPACT:

Rates are proposed to increase as follows:

Water - Year 1: 35%, Year 2: 15%, Year 3: 10%, Year 4 & 5: 5% (Until approved) Wastewater - Year 1: 35%, Year 2 & 3: 12%, Year 4 & 5: 5% (Until approved) Storm Drain - Year 1-5: 5%

The proposed five-year water utility rate plan will fund future operating and capital costs, maintain reserve levels and financial metrics that comply with approved fiscal and reserve policies, and maintain current bond ratings to keep current and potential borrowing costs for capital investments low.

ATTACHMENTS:

1. Attachment 'A' - Rate Report Final 11.7.23

2. City of Hanford_8.5x11_Prop 218 Notice_111423

3. RESOLUTION 24-02-R

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CITY OF HANFORD

Water, Wastewater, and Stormwater
Utility Rate Study 2023

FINAL REPORT
November 7, 2023
909 Marina Village Parkway #135
Alameda, CA 94501
(510) 545-3182
www.LTmuniconsultants.com

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City of Hanford
Water, Wastewater, and Stormwater Utility Rate Study 2023

TABLE OF CONTENTS

Section 1: INTRODUCTION ......................................................................................................................... 1

1.1 Background ................................................................................................................................... 1

1.2 Requirements of Proposition 218 ................................................................................................. 1

1.3 Rate Study Process ........................................................................................................................ 2

1.4 Summary of Proposed Rates ......................................................................................................... 4 Section 2: CURRENT RATES AND CUSTOMER BASE ................................................................................. 10

2.1 Current Water Rates ................................................................................................................... 10

2.2 Water Customer Base and Current Water Sales Revenues ........................................................ 11

2.3 Current Wastewater Rates.......................................................................................................... 13

2.4 Wastewater Customer Base and Current Revenues ................................................................... 14

2.5 Current Storm Drainage Rates and Revenues ............................................................................ 16 Section 3: WATER REVENUE REQUIREMENT ........................................................................................... 17

3.1 Water System Overview ............................................................................................................. 17

3.2 Water Reserves ........................................................................................................................... 17

3.3 Water Capital Improvement Plan ............................................................................................... 18

3.4 Water Cash Flow Projection ........................................................................................................ 18 Section 4: WATER COST ALLOCATION AND RATE DESIGN ....................................................................... 22

4.1 Water Cost Allocation ................................................................................................................. 22

4.2 Billing Units ................................................................................................................................. 24

4.3 Water Rate Design ...................................................................................................................... 26

4.4 Water Rate Derivation ................................................................................................................ 27

4.5 Water Bill Impacts ....................................................................................................................... 32 Section 5: WASTEWATER REVENUE REQUIREMENT................................................................................ 35

5.1 Wastewater System Overview .................................................................................................... 35

5.2 Wastewater Reserves ................................................................................................................. 35

5.3 Wastewater Capital Improvement Plan ...................................................................................... 35

5.4 Wastewater Cash Flow Projection .............................................................................................. 36 Section 6: WASTEWATER COST ALLOCATION AND RATE DESIGN ........................................................... 41

6.1 Wastewater Cost Allocation ....................................................................................................... 41

6.2 Wastewater Rate Design ............................................................................................................. 42

6.3 Wastewater Flows....................................................................................................................... 43

6.4 Wastewater Rate Derivation ....................................................................................................... 44

6.5 Wastewater Bill Impacts ............................................................................................................. 46 Section 7: STORM DRAINAGE REVENUE REQUIREMENT ......................................................................... 51

7.1 Storm Drainage System Overview .............................................................................................. 51

7.2 Storm Drainage Reserves ............................................................................................................ 51

7.3 Storm Drainage Capital Improvement Plan ................................................................................ 51

7.4 Storm Drainage Cash Flow Projection......................................................................................... 52

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City of Hanford
Water, Wastewater, and Stormwater Utility Rate Study 2023

Section 8: STORM COST ALLOCATION AND RATE DESIGN ....................................................................... 55

8.1 Storm Drainage Cost Allocation .................................................................................................. 55

8.2 Storm Drainage Fee Design ......................................................................................................... 57

8.3 Cost Allocation Results ................................................................................................................ 59

8.4 Proposed Storm Drainage Rates ................................................................................................. 60

8.5 Storm Drainage Survey ............................................................................................................... 60

8.6 Annual Parcel Database Review .................................................................................................. 61

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City of Hanford
Water, Wastewater, and Stormwater Utility Rate Study 2023

LIST OF TABLES

Table 1: Proposed Monthly Water Rates ...................................................................................................... 5 Table 2: Proposed Wastewater Rates ........................................................................................................... 6 Table 3: Proposed Monthly Storm Drainage Fees ........................................................................................ 7 Table 4: Current Monthly Water Rates ....................................................................................................... 11 Table 5: Estimated Water Service Sales Revenues from Billing Data, FY 2022/23 ..................................... 12 Table 6: Current Wastewater Rates ............................................................................................................ 14 Table 7: Estimated Wastewater Service Charge Revenues from Billing Data, FY 2022/23 ........................ 15 Table 8: Current Storm Drainage Rates ...................................................................................................... 16 Table 9: Water Capital Improvement Plan (rate funded) ........................................................................... 18 Table 10: Water Cash Flow Projection ........................................................................................................ 21 Table 11: Water Cost Allocation ................................................................................................................. 23 Table 12: Annual Revenue Requirement Allocation ................................................................................... 24 Table 13: Number of Meter Equivalents (Total Inside & Outside City Accounts)....................................... 25 Table 14: Projected Customer Growth & Water Consumption .................................................................. 26 Table 15: Water Fixed Charge Derivation ................................................................................................... 28 Table 16: Consumption Charge Rate Derivation ......................................................................................... 29 Table 17: Consumption Charge Rate Derivation - Drought Rates .............................................................. 30 Table 18: Proposed Monthly Water Rates .................................................................................................. 31 Table 19: Sample Monthly Residential Water Bill Impacts ......................................................................... 32 Table 20: Wastewater Capital Improvement Plan (rate funded) ............................................................... 36 Table 21: Wastewater Cash Flow Projection .............................................................................................. 39 Table 22: Wastewater Cost Allocation ........................................................................................................ 42 Table 23: Annual Sewer Flows & Loadings ................................................................................................. 43 Table 24: Unit Cost Calculation ................................................................................................................... 44 Table 25: Sewer Rate Calculation ............................................................................................................... 45 Table 26: Proposed Wastewater Rates ....................................................................................................... 46 Table 27: Proposed Wastewater Rate Increases ........................................................................................ 47 Table 28: Sample Monthly Non-Residential/Commercial Sewer Bill Impacts ............................................ 49 Table 29: Storm Drainage Capital Improvement Program (CIP) ................................................................. 52 Table 30: Storm Drainage Cash Flow Projection ......................................................................................... 54 Table 31: Estimated of Acreage & Impervious Area ................................................................................... 57 Table 32: Storm Drainage Fee Calculation .................................................................................................. 58 Table 33: Proposed Storm Drainage Fees ................................................................................................... 60

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City of Hanford
Water, Wastewater, and Stormwater Utility Rate Study 2023

LIST OF FIGURES

Figure 1: Comprehensive Cost of Service Study Process .............................................................................. 3 Figure 2: Single Family Residential Monthly Water, Sewer, and Storm Average Bill ................................... 8 Figure 3: Single Family Residential Monthly Water, Sewer, and Refuse Bill Survey .................................... 9 Figure 4: Water Cash Flows ......................................................................................................................... 20 Figure 5: Monthly Single Family Residential Water Bill Survey .................................................................. 33 Figure 6: Fixed Monthly Meter Charge Survey ........................................................................................... 34 Figure 7: Wastewater Cash Flows ............................................................................................................... 38 Figure 8: Monthly Single Family Residential Wastewater Bill Survey ......................................................... 48 Figure 9: Commercial Monthly Wastewater Bill Surveys by Strength Category ........................................ 50 Figure 10: Storm Drainage Cash Flows ....................................................................................................... 53 Figure 11: Current vs. Proposed Storm Drainage Revenue Recovery ........................................................ 59 Figure 12: Storm Drainage Residential Monthly Bill Survey ....................................................................... 61

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City of Hanford Page 1 Water, Wastewater, and Stormwater Utility Rate Study 2023

SECTION 1: INTRODUCTION

1.1 Background
The City of Hanford (City) is located in the southern portion of the San Joaquin Valley and is the county seat of Kings County, California. The City was incorporated in 1891. The City provides water, wastewater, and storm drainage service to a population of over 56,000 residents in addition to businesses and industrial facilities. The water, wastewater, and storm drainage enterprise funds are self-supported from rates and charges and fund the operations and capital project budgets of the Utilities and Wastewater branches of the Public Works Department.

The City Council approved the last formal rate studies in 2015 for the water utility and 2009 for the wastewater and storm drainage utilities. Water rates were last increased July 1, 2018, and wastewater and storm drainage rates were last increased July 1, 2011. Since then, the City has experienced a number of unanticipated changes necessitating a rate reevaluation including COVID-19, economic inflation, and water supply issues as well as the development of new Master Plans for all three utilities.

The City engaged Lechowicz & Tseng Municipal Consultants (L&T) to complete a comprehensive water, wastewater (sewer), and storm drainage (storm) rate study to recommend utility rates that will generate sufficient revenues to recover the full cost of services and ensure the continued financial health of the City’s enterprise funds. This rate study covers the five-year period beginning in Fiscal Year (FY) 2023/24 through 2027/28.

1.2 Requirements of Proposition 218
The implementation of utility rates in California is governed by the substantive and procedural requirements of Proposition 218 the “Right to Vote on Taxes Act” which is codified as Articles XIIIC and XIIID of the California Constitution. The City must follow the procedural requirements of Proposition 218 for all utility rate increases. These requirements include:

1. Noticing Requirement – The City must mail a notice of the proposed rate increases to all affected property owners or ratepayers. The notice must specify the amount of the fee, the basis upon which it was calculated, the reason for the fee, and the date/time/location of a public rate hearing at which the proposed rates will be considered/adopted.

2. Public Hearing – The City must hold a public hearing prior to adopting the proposed rate increases. The public hearing must be held not less than 45 days after the required notices are mailed.

3. Rate Increases Subject to Majority Protest – At the public hearing, the proposed rate increases are subject to majority protest. If more than 50% of affected property owners or ratepayers submit written protests against the proposed rate increases, the increases cannot be adopted.

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Proposition 218 also established substantive requirements that apply to water, wastewater, and storm rates and charges, including:

1. Cost of Service – Revenues derived from the fee or charge cannot exceed the funds required to provide the service. In essence, fees cannot exceed the “cost of service”.

2. Intended Purpose – Revenues derived from the fee or charge can only be used for the purpose for which the fee was imposed.

3. Proportional Cost Recovery – The amount of the fee or charge levied on any customer shall not exceed the proportional cost of service attributable to that customer.

4. Availability of Service – No fee or charge may be imposed for a service unless that service is used by, or immediately available to, the owner of the property.

5. General Government Services – No fee or charge may be imposed for general governmental services where the service is available to the public at large.

Charges for water, wastewater, and storm service are exempt from additional voting requirements of Proposition 218, provided the charges do not exceed the cost of providing service and are adopted pursuant to the procedural requirements of Proposition 218. In 2017, the State passed Senate Bill 231 clarifying the definition of “sewer” in Proposition 218 to include both sanitary and storm sewer, and thereby exempting storm drain rates from the additional ballot requirement.

1.3 Rate Study Process
This section details the development of the City’s water, wastewater, and storm rates via the Proposition 218 process as shown in the following figure.

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City of Hanford Page 3 Water, Wastewater, and Stormwater Utility Rate Study 2023

Figure 1: Comprehensive Cost of Service Study Process

The following is a brief description of the rate study process:

 Revenue Requirements - Revenue requirements are analyzed via financial plans developed from the Water, Wastewater, and Storm Drain Fund budgets. Based on the best information currently available, the financial plans incorporate projected operation and maintenance costs, capital expenditures, debt service, and growth to estimate annual revenue requirements. The plans serve as a roadmap for funding the City’s future operating and capital programs while maintaining long-term fiscal stability.

 Cost of Service Allocation - The cost of service process builds on the financial plan analysis and assigns water and sewer system costs to functional cost components: metering and customer service, base, and extra for water, and customer service, flow, BOD, and SS for sewer. Storm drain service costs are allocated to customers based on parcel size and impervious (paved) area.1

1 Single family residential (SFR) parcels are proposed to be charged based on average SFR parcel size within the City

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 Rate Design - Rate design involves developing a rate structure that proportionately recovers costs from customers. Final rate recommendations are designed to (a) fund the utilities’ short- and long-term costs of providing service; (b) proportionately allocate costs to all customers and customer classes; and (c) comply with the substantive requirements of Proposition 218.

1.4 Summary of Proposed Rates
The proposed water, wastewater, and storm drain rates were developed to fairly recover costs, adhere to California statute, and be affordable to customers. The rates developed were based on the best available information gathered from City budgets, audits, and input from staff and City Council. The cost allocations proposed herein are based on American Water Works Association methodologies and industry standard practice. The proposed rates are based on the reasonable cost of providing service and are proportional to the benefits received by each customer.

Current and proposed monthly water rates are provided in Table 1. As an update to the current rates, it is proposed that customers be billed the same rates regardless of whether their property is inside the City limits. The projected water rates also include a schedule of drought rates, which would only be implemented during a water shortage emergency.

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City of Hanford Page 5 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 1: Proposed Monthly Water Rates City of Hanford Utility Rate Study
Current
Rates [1]

PROPOSED
Fiscal Year FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Effective Date July 1, 2018 Feb 1, 2024 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027

METER CHARGES
5/8", 3/4", & 1" $15.41 $17.42 $19.85 $21.64 $22.52 $23.44 1-1/2" & 2" $21.88 $31.89 $36.34 $39.62 $41.23 $42.91 3" & 4" $34.83 $95.56 $108.90 $118.73 $123.55 $128.58 6" $54.26 $292.35 $333.16 $363.26 $378.01 $393.37
8" $80.17 $465.99 $531.04 $579.02 $602.53 $627.01
CONSUMPTION CHARGES ($/CCF)
All Customers $1.34 $1.94 $2.24 $2.44 $2.54 $2.64

DROUGHT CONSUMPTION CHARGES ($/CCF) [2]
10% Water Cutback $2.10 $2.42 $2.64 $2.75 $2.86
20% Water Cutback $2.30 $2.65 $2.89 $3.01 $3.13
35% Water Cutback $2.72 $3.13 $3.41 $3.55 $3.69
50% Water Cutback $3.38 $3.89 $4.24 $4.41 $4.59

CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons 1 - Current rates shown are for Inside City customers. Inside & Outside City customers are proposed to be billed the same rates going forward. Current meter charges shown are the sum of the service connection charge and the meter fee.
2 - Only to be implemented temporarily during water shortage emergencies.

Current and proposed monthly wastewater rates are provided in Table 2. The proposed monthly storm rates are provided in Table 3. Currently, wastewater and stormwater rates are billed together as a single charge. Of the existing wastewater system charges adopted in the City’s Resolution No. 09-77-R, 78.0% of the service charges for each customer are allocated to the wastewater system, and the remaining

22.0% are allocated to the stormwater system. It is recommended that the City levy storm drain charges based on land use type and parcel size to better reflect the proportional cost of service provided to each customers. Single family residential customers are proposed to be billed a fixed fee based on the average parcel size while all other customer types will be charged an individual rate based on their parcel’s acreage. Parcels with indeterminate acreage will be billed a minimum charge according to their customer class.

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Table 2: Proposed Wastewater Rates City of Hanford
Utility Rate Study

Current PROPOSED
Customer Class Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Effective Date July 1, 2011 Feb 1, 2024 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027

RESIDENTIAL (Per dwelling unit)
Single Family $17.86 $24.67 $27.63 $30.95 $32.50 $34.13 Multi-Family/Duplex $16.93 $18.51 $20.73 $23.22 $24.38 $25.60

NON-RESIDENTIAL
Metered Water ($/CCF) [1]
Group A: Domestic $1.54 $3.08 $3.45 $3.86 $4.05 $4.25 Group B: Low Strength $1.44 $2.81 $3.15 $3.53 $3.71 $3.90 Group C: Medium Strength $2.15 $3.95 $4.42 $4.95 $5.20 $5.46 Group D: High Strength $2.88 $5.34 $5.98 $6.70 $7.04 $7.39

Schools (per student ADA) [2] $0.51 $0.74 $0.83 $0.93 $0.98 $1.03 Septage (per 1,000 gallons) $26.19 $35.03 $39.23 $43.94 $46.14 $48.45 Industrial
Flow (per mg) $1,561.56 $2,497.17 $2,796.83 $3,132.45 $3,289.07 $3,453.52 BOD (per lb) $0.173 $0.557 $0.623 $0.698 $0.733 $0.770 SS (per lb) $0.167 $0.558 $0.625 $0.700 $0.735 $0.772 CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons; Mg – million gallons; BOD – biological oxygen demand; SS – suspended solids
1 - Per hundred cubic feet (ccf) 2 - ADA - average daily attendance

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Table 3: Proposed Monthly Storm Drainage Fees
City of Hanford
Utility Rate Study
Current PROPOSED
Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Effective Date July 1, 2011 Feb 1, 2024 July 1, 2024 July 1, 2025 July 1, 2026 July 1, 2027

SINGLE FAMILY RESIDENTIAL $5.04 $4.57 $4.79 $5.03 $5.29 $5.55 (per account)

ALL OTHER CUSTOMERS (per acre)
Business

$43.25 $45.42 $47.69 $50.07 $52.57
Industrial $38.45 $40.37 $42.39 $44.51 $46.73
Low Density $4.81 $5.05 $5.30 $5.56 $5.84
Multi-Family $28.84 $30.28 $31.79 $33.38 $35.05
Public Agency $43.25 $45.42 $47.69 $50.07 $52.57
Schools $7.21 $7.57 $7.95 $8.35 $8.76

BASE CHARGE (per account) [1]
Business

$8.65 $9.08 $9.54 $10.01 $10.51
Industrial $7.69 $8.07 $8.48 $8.90 $9.35
Low Density $0.96 $1.01 $1.06 $1.11 $1.17
Multi-Family $5.77 $6.06 $6.36 $6.68 $7.01
Public Agency $8.65 $9.08 $9.54 $10.01 $10.51
Schools $1.44 $1.51 $1.59 $1.67 $1.75

1 - Charge for storm drain accounts that the City does not currently have parcel size for

For all three utilities, the first rate change is proposed to go into effect February 1, 2024 with subsequent rate effective each July 1 beginning in 2024 through 2027. The typical monthly water use of a single family customer is 16 ccf per month. Based on these parameters, the City’s current total combined water, wastewater, and storm drain bill for a typical single family home with a 5/8” meter is $59.75 per month. After the proposed increase, the typical combined residential bill would increase to $77.70 per month on February 1, 2024, an increase of about 30%, see Figure 2.

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Figure 2: Single Family Residential Monthly Water, Sewer, and Storm Average Bill

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It should be noted that each customer’s monthly utility bill also includes service charges for other utility services including refuse and street sweeping. The charges for other utility services are not evaluated as part of this study. A survey was conducted comparing the combined monthly utility bill for City of Hanford residents with those of other local cities. Because not all cities charge monthly rates for storm drainage and street sweeping services, only water, wastewater, and refuse charges were included in the comparison, see Figure 3. The City’s current and proposed combined monthly bills fall within the lower to mid-range of those charged by surrounding cities.

Figure 3: Single Family Residential Monthly Water, Sewer, and Refuse Bill Survey

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SECTION 2: CURRENT RATES AND CUSTOMER BASE
This section provides an overview of the City of Hanford’s current water, wastewater, and storm drainage rates, customer base, water usage statistics, and current rate revenues.

2.1 Current Water Rates
The City bills customers for water service on a monthly basis. The last water rate study was conducted in 2015 which provided a schedule of water rate increases through 2018. A schedule of current monthly water rates that went into effect on July 1, 2018 is provided in Table 4. Current rates vary based on whether each customer is located inside or outside the City limits. There is a 10% surcharge for customers outside the City limits. Prior to the last water rate study, some City customers were unmetered and billed according to a schedule of flat rates for water service. Since then, all customers have been transitioned to metered service. Thus, the City’s existing schedule of water rates for flat rate connections is not evaluated as part of this study. The City’s current water rate structure for metered service connections includes three components: (1) a Connection Charge, (2) a Meter Size Charge, and (3) a Water Consumption Charge.

2.1.1 Connection Charge
All customers are charged a connection charge which is standard across all customer classes and meter sizes. The connection charge is charged independent of water consumption.

2.1.2 Meter Size Charge
All customers are charged a meter size charge based on their meter size which is levied regardless of water consumption and recognizes that even when a customer does not use any water, the City incurs fixed costs associated with maintaining the ability or readiness to serve each connection. Together with the connection charge, the meter size charge makes up the fixed portion of each customer's monthly bill.

2.1.3 Water Consumption Charge
In addition to the fixed charges, all customers pay a water consumption charge per hundred feet (ccf) of water consumption. One ccf is equal to 748 gallons of water. The charges for all customers are the same regardless of customer class.

2.1.4 Private Fire Protection Service
The City also levies a flat charge to three customers that have a separate meter for fire sprinklers. The private fire protection service charges are not evaluated as part of this study.

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City of Hanford Page 11 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 4: Current Monthly Water Rates
City of Hanford
Utility Study
Connection Charge Inside City
Limits
Outside
City Limits
All Service Connections $2.46 $2.71
Meter Size Charge
5/8", 3/4", & 1" meter $12.95 $14.25
1-1/2" & 2" meter $19.42 $21.36
3" & 4" meter $32.37 $35.61
6" meter $51.80 $56.98
8" meter $77.71 $85.48
Water Consumption Charge (per ccf)
Rate per ccf $1.34 $1.47
CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons Note: Private fire protection service charges are not included in the table

2.2 Water Customer Base and Current Water Sales Revenues Table 5 includes a summary of the number of water accounts by meter size based on the City’s billing data as well as estimated water usage and service charge revenues for FY 2022/23. The City provides service to over 18,300 accounts of which approximately 450 are outside current City limits. The majority of customers have 5/8”, 3/4”, or 1” meters, representing about 94.0% of total meters.

The City collected approximately $9.3 million in total water rate revenues in FY2022/23. About 38.0% of revenues were collected from fixed charges including the connection charge, meter size charge, and private fire protection charges. The meter charges shown in Table 5 include the Connection Charge that has added on to the Meter Size Charge for each meter size. The remaining 62.0% of revenues were collected from Water Consumption Charges. Total annual water consumption in FY2022/23 was estimated at 4.3 million ccf, a decrease of about 8.0% from the previous two years.

Based on City billing records, the current average single family monthly residential water use is 16 ccf per month. Based on a typical home with a 5/8”, 3/4”, or 1” meter and 16 ccf of water use, the average water bill is currently $36.85 per month.

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City of Hanford Page 12 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 5: Estimated Water Service Sales Revenues from Billing Data, FY 2022/23 City of Hanford
Utility Rate Study

FY 2022/2023 (ESTIMATED)

METER CHARGE
Inside City Accounts Meter Charge No. of Accts Fixed Revenue % of Total 5/8", 3/4", & 1" $15.41 16,861 $3,117,936 33.5%
1-1/2" & 2" $21.88 862 $226,327 2.4%
3" & 4" $34.83 114 $47,647 0.5%
6" $54.26 12 $7,813 0.1%
8" $80.17 3 $2,886 0.0%

Outside City Accounts
5/8", 3/4", & 1" $16.96 428 $87,107 0.9%
1-1/2" & 2" $24.07 20 $5,777 0.1%
3" & 4" $38.32 1 $460 0.0%
6" $59.69 2 $1,433 0.0%
8" $88.19 2 $2,117 0.0%

Private Fire Service
4" $46.62 1 $559 0.0%
6" $69.93 2 $1,678 0.0%

Subtotal Fixed Revenue 18,308 $3,501,740 37.6%

USAGE CHARGE
All Usage Usage Charge Usage (ccf)
Usage Charge
Revenue % of Total
Inside City $1.34 4,195,771 $5,622,334 60.4%
Outside City $1.47 129,074 $189,739 2.0%
Subtotal Consumption Revenue 4,324,846 $5,812,073 62.4%

Total Water Sales Revenue $9,313,813 100.0%

CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons

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City of Hanford Page 13 Water, Wastewater, and Stormwater Utility Rate Study 2023

2.3 Current Wastewater Rates
The City’s last wastewater rate study was conducted in 2009 which determined a schedule of rates through 2011. A schedule of current monthly wastewater rates that went into effect on July 1, 2011 is provided in Table 6. The City’s current rate structure varies based on customer class.

2.3.1 Residential Customers
Residential customers pay a flat monthly charge on a per dwelling unit basis. Single family residential customers pay $17.86 per month, and multi-family customers pay $16.93 per dwelling unit. A triplex is charged for three dwelling units, as an example. The charge per dwelling unit is lower for multi-family customers than single-family customers, reflecting lower average winter water use and estimated sewer flows.

2.3.2 Commercial Customers
Commercial customers pay a volume rate per ccf based on metered monthly water use. There are four subcategories of commercial wastewater customers grouped according to strength of wastewater flow.

Customers with higher strength wastewater flow such as restaurants are billed a higher rate per ccf.

Because sewer flow is not typically metered, water consumption is used as an approximation for sewer flow. It is assumed that any outdoor irrigation water use that does not flow into the sewer is separately metered through an irrigation-only connection that is not billed for sewer service.

2.3.3 Schools
Schools are billed annually based on average daily attendance (ADA) per month during the 9 months when schools are in session.

2.3.4 Septage
The City’s septage hauler customers are billed per thousand gallons according to metered flow.

2.3.5 Industrial Customers
The City’s industrial customers are charged according to actual metered wastewater discharge (flow and pollutant loading) as well as fees for excessive discharge.

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Table 6: Current Wastewater Rates
City of Hanford
Utility Rate Study

RESIDENTIAL
Single family residences $17.86 /month
Duplex, multi-family dwelling per dwelling unit $16.93 /month

NON- RESIDENTIAL
Metered water
(a) Mobile home parks, motels, public buildings, hospitals, nursing homes, churches, fraternal lodges, service stations and automotive centers
$1.54 /ccf [1]
(b) Car washes, laundromats, retail, commercial and
professional establishments $1.44 /ccf
(c) Mixed use commercial centers including food services with single water service $2.15 /ccf
(d) Restaurants, supermarkets, grocery stores, mortuaries $2.88 /ccf Schools $0.51 /student/mo ADA [2]
Septage $26.19 /1000 gallons

INDUSTRIAL
Flow $1,561.56 /million gal.

BOD (Biological Oxygen Demand) $0.17 per lb.

SS (Suspended Solids) $0.17 per lb.
1 - CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons 2 - ADA – average daily attendance

2.4 Wastewater Customer Base and Current Revenues
The City’s wastewater utility provides service to over 17,300 single family, multi family, commercial, industrial, and school accounts within the City. The majority of accounts are for single family residential customers, representing about 92.0% of total account holders.

Table 7 includes an estimate of total wastewater rate revenues collected in FY2022/23 based on the City’s billing data as well as the number of billing units in each customer class. It is estimated that the City collected approximately $5.39 million in total wastewater rate revenues in FY2022/23. About 81.0% of revenues were collected from the flat charges billed to single and multi-family residential customers.

Industrial revenues account for over 4.0% of total while commercial revenues represent approximately

13.0%. The remainder of revenues are comprised of school and septage revenues.

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Table 7: Estimated Wastewater Service Charge Revenues from Billing Data, FY 2022/23 City of Hanford
Utility Rate Study

FY 2022/2023 (ESTIMATED)

FIXED CHARGES
Residential Customers
Monthly Fixed
Charge No. of Units
Estimated
Fixed
Revenue % of Total
Single Family Residential $17.86 15,872 $3,401,687 64.3% Multi-Family Residential per unit $16.93 4,345 $882,730 16.7% Subtotal Residential $4,284,417 81.0%

VOLUME RATES
Industrial Customers
Usage Charge
($/million gal
or $/lb.) Units
Estimated
Revenue % of Total
Flow (million gallons) $1,561.0 145.16 $226,595 4.3%
BOD (lbs) $0.173 33,269 $5,761 0.1%
SS (lbs) $0.167 27,119 $4,527 0.1%
Subtotal Industrial $236,883 4.5%

Commercial Customers
Usage Charge
($/ccf) Billed Flow
Estimated
Revenue % of Total
Group A: Domestic $1.54 129,553 $199,512 3.8%
Group B: Low Strength $1.44 168,658 $242,868 4.6%
Group C: Medium Strength $2.15 12,939 $27,819 0.5%
Group D: High Strength $2.89 79,588 $230,009 4.3%
Subtotal Commercial 390,738 $700,207 13.2%

Schools
Charge per
student (ADA)
# of
students
Estimated
Revenue % of Total
$0.51 $48,539 0.9%
Subtotal Schools $48,539 0.9%

Septage
Usage Charge
($/1000 gal)
Billed Flow
(1,000 gal)
Estimated
Revenue % of Total
$26.19 765 $20,038 0.4%
Subtotal Septage $20,038 0.4%

TOTAL WASTEWATER SERVICE REVENUES $5,290,084 100.0%

CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons

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City of Hanford Page 16 Water, Wastewater, and Stormwater Utility Rate Study 2023

2.5 Current Storm Drainage Rates and Revenues
Of the existing wastewater system charges adopted in the City’s Resolution No. 09-77-R, 78.0% of the service charges for each customer are allocated to the wastewater system as shown in Table 6, and the remaining 22.0% are allocated to the storm drain system. Thus, the rate structure for the storm drain system is the same as the rate structure for the wastewater system. A schedule of current monthly storm drain rates that went into effect on July 1, 2011 is provided in Table 8. Residential customers are billed a flat charge per dwelling unit, commercial customers are billed a volume rate per ccf of metered water usage, schools are billed per student, septage users are billed per thousand gallons, and industrial customers are billed according to metered wastewater discharge.

Annual fee revenues collected in FY2022/23 were estimated at $1.45 million. About 65.0% of revenues were collected from single family residential customers. Multi-family residential customers generated

16.2% of revenues, businesses generated 10.5%, industrial customers generated 5.9%, and the remainder were collected from public agencies and schools.

Table 8: Current Storm Drainage Rates
City of Hanford
Utility Rate Study

RESIDENTIAL
Single family residences $5.04 /month
Duplex, multi-family dwelling per dwelling unit $4.77 /month

NON- RESIDENTIAL
Metered water
(a) Mobile home parks, motels, public buildings, hospitals, nursing homes, churches, fraternal lodges, service stations and automotive centers
$0.43 /ccf [1]
(b) Car washes, laundromats, retail, commercial and
professional establishments $0.40 /ccf
(c) Mixed use commercial centers including food services with single water service $0.61 /ccf
(d) Restaurants, supermarkets, grocery stores, mortuaries $0.81 /ccf Schools $0.15 /student/mo ADA [2]
Septage $7.39 /1000 gallons

INDUSTRIAL
Flow $440.44 /million gal.

BOD (Biological Oxygen Demand) $0.0488 per lb.

SS (Suspended Solids) $0.0471 per lb.
1 - CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons 2 - ADA = average daily attendance

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City of Hanford Page 17 Water, Wastewater, and Stormwater Utility Rate Study 2023

SECTION 3: WATER REVENUE REQUIREMENT
Proposition 218 requires that utility rates be based on the reasonable cost of providing service to customers. The cost of service includes annual operating expenses, capital improvement projects, and the accumulation of appropriate reserves. This section summarizes the water utility’s revenues and expenses to determine the total cost of service to be recovered via rates. The cost of service is expressed in a cash flow table that illustrates revenue increases needed to keep up with expenses and maintain the financial health of the enterprise.

3.1 Water System Overview
The City is responsible for providing safe, clean water through the operation of its water system consisting of over 220 miles of water mains, 12 water supply wells, and 3.5 million gallons of water storage. The City’s sole water source is groundwater from within the San Joaquin Valley Groundwater Basin which is obtained from wells and chlorinated before distribution. One well also includes treatment facilities for the removal of arsenic.

There are over 18,000 active water accounts including City residents and a small number of residents in surrounding areas. On average over the past 3 years, the City has consumed between 4.5 million and 5 million ccf of water each year. Single family residential consumption comprises more than half of the City’s total consumption at approximately 66.0% with the remaining 33.0% of use by multi-family residential, commercial, industrial, public agency, and school customers. Based on City billing records, the current average monthly single family residential water use is 16 ccf per month.

3.2 Water Reserves
The accumulation and maintenance of reasonable reserves is one factor to consider when determining the cost of service. Adequate fund reserves protect the City when faced with unforeseen financial challenges such as emergency expenses or revenue deficits. Fund reserves allow the City to maintain its financial health and positive credit ratings, especially during emergencies. Moreover, funding can be drawn from reserves to supplement rate revenues lost during drought conditions or other unexpected situations. The City can also choose to use reserves to smooth cash flows and mitigate impacts to ratepayers.

The City maintains two water reserve funds – 1) an operating fund reserve and 2) a capital reserve fund reserve. As of the beginning of FY 2023/24, the water utility had operations fund reserves of approximately $9.98 million and capital and reserve fund reserves of approximately $10.58 million. Total reserves are strong. The recommended reserve target is 50 percent of annual operating costs plus one year’s total debt service payment.

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City of Hanford Page 18 Water, Wastewater, and Stormwater Utility Rate Study 2023

3.3 Water Capital Improvement Plan
Table 9 provides the City’s capital improvement plan (CIP) by year for the rate study period, totaling $43.7 million. Projects funded by impact fees or other non-rate sources are not included. Major projects include the replacement of water meters and aged water mains throughout the City.

Table 9: Water Capital Improvement Plan (rate funded)
City of Hanford
Utility Rate Study

Project Title FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 5-Year Total Water Sys Security Upgrades $605,740 - - - - $605,740 Utility Customer Payment Kiosks (2) $27,000 $14,000 $14,000 $14,000 $14,000 $83,000 Industrial Park Water Storage - $3,879,800 - - - $3,879,800 Tank 4 Chlorination $66,070 - - - - $66,070
Repr Well 45 & 49 $86,060 - - - - $86,060
Lacey Blvd Widen Magna Carta to 13th - - - $500,000 - $500,000 2910 Well Pump Rehab 42 & 38 $120,000 $120,000 - - - $240,000 2910 Spare Motor 250 - - $60,000 - - $60,000
Water Distrib Main Ext Program - $480,000 - - - $480,000 Water Main Repl Program $700,000 - $700,000 - $700,000 $2,100,000 New Water Supply Well $900,000 - $900,000 - $900,000 $2,700,000 2910 Meter Replacement $5,000,000 $5,000,000 $5,000,000 - - $15,000,000 Unsch Main Exten/Repl-Water $50,000 $50,000 $50,000 $50,000 $50,000 $250,000 2081 Fire Hydrants $28,000 - - - - $28,000
1750 Pw Enclosed Warehouse - - $200,000 - - $200,000 Lacey Widen/Recon/10th-Sierra $366,020 $584,640 $223,870 - - $1,174,530 Meter Replacement Program $857,830 $120,000 $120,000 $120,000 $120,000 $1,337,830 Automated Meter Zenner Eq Repair $638,180 - - - - $638,180 Amr Replacement Program $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000 Annual Repairs & Replacement - $500,000 $500,000 $500,000 $500,000 $2,000,000 Well 51 and Well 52 - $4,240,000 - - - $4,240,000
Well and Tank at Heroes Park - - - - $6,000,000 $6,000,000 Total Water CIP $9,844,900 $15,388,440 $8,167,870 $1,584,000 $8,684,000 $43,669,210

3.4 Water Cash Flow Projection
The water fund cash flow for the five-year period beginning in FY 2023/24 through FY 2027/28 is provided in Table 10. The cash flow is based on the City’s FY 2023/24 and 2024/25 Budget and includes revenue increases such that the City covers operating and debt service costs, funds all proposed capital improvement projects, and maintains adequate reserves. Revenue increases over the course of the five- year period are proposed to be 35.0% in the first year followed by 15.0%, 10.0%, 5.0%, and 5.0%. It should be noted that this level of increase is applied to the City’s total water rate revenues and does not necessarily reflect the level of increase for individual customers. Each customer’s bill varies depending

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on meter size and water usage. The first rate increase is proposed to go into effect February 1, 2024, followed by subsequent increases each July 1 beginning in 2024 through 2027.

3.4.1 Water Revenues
As shown in Table 5, current water rates are estimated to generate $9.3 million in revenues. For FY 2023/24, rate revenues are projected at $10.4 million, assuming the City will collect rates at the current revenues for 7 months and rates with proposed revenue increases for 5 months. Rate revenues are the main revenue source for the water utility, comprising about 97.0% of total water revenues. Other revenue sources include penalty fees, job orders, interest income, and miscellaneous income. These other sources generate about $299,000 annually, which is projected to remain constant over the next five years.

3.4.2 Water Expenses
The cash flow uses the City’s FY 2023/24 and FY 2024/25 Budget as the basis for projected expenses.

Most operating expenses are projected to increase 3.0% annually beginning in FY 2025/26, except for Salaries & Benefits which are escalated by 7.0% annually beginning in FY 2025/26 per City direction. The water fund’s share of payments for the principle for the Pension Obligation Bond (POB) are included as a new expense. New fees payable to the local Groundwater Sustainability Agency (GSA) are estimated at $100,000 annually for administration plus an additional $500,000 per year for pumping fees beginning in FY 2024/25. Annual depreciation is not included as a cash expense. The City’s capital improvement plan includes funding for the repair and replacement of infrastructure to keep up with wear and tear on the City’s facilities.

3.4.3 Debt Service and Debt Service Coverage
A chief covenant for the City to secure loans, grants, or revenue bonds/Certificates of Participation (COPs) is to maintain a specific debt service coverage ratio. A debt service coverage ratio is a financial measure of an agency’s ability to repay outstanding debt. For the water fund, the debt service coverage ratio means that annual water net revenues (gross revenues less operating and maintenance expenses) must be at least 1.2 times the combined annual debt service payments on all parity obligations. Failure to meet the debt service coverage ratio on an annual basis is considered to be technical default, thereby making the revenue bonds/COPs callable or payable upon demand. Thus, rates and fees must be set to meet this legal requirement.

The water utility currently has one outstanding debt obligation that counts toward its debt service coverage requirement – Water Revenue Refunding Bonds, Series 2013. In 2013, the City issued $12.725 million in bonds bearing interest of 2.0% to 5.0% payable semi-annually beginning in October 2013. The Bonds were issued to refinance the City’s previously issued $8.925 million CSCDA Water and Wastewater Revenue Bonds dated December 9, 2003 and the $8.15 million Installment Sale Agreement – Water System dated December 20, 2007. Total annual debt service is about $1.1 million and will be

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paid off in October 2028. The rates proposed in this study are expected to generate adequate revenues to meet the City’s current and future coverage requirements.

3.4.4 Five-Year Summary
Figure 4 graphically shows the water cash flow projection for the five-year rate study period including both operating and capital expenses. In the first few years, expenses will exceed revenues. The City will spend down some of its existing reserves to fund capital projects, thereby mitigating the level of rate increases needed for customers. At the end of the five-year period, the City’s revenues are projected to be in-line with total expenses.

Figure 4: Water Cash Flows

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City of Hanford Page 21 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 10: Water Cash Flow Projection
City of Hanford
Utility Rate Study Years 1 -5: Proposition 218 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28
Rate Revenue Increase 35.0% 15.0% 10.0% 5.0% 5.0%
Rate Increase Effective Feb 1, 2024 Jul 1, 2024 Jul 1, 2025 Jul 1, 2026 Jul 1, 2027 BEGINNING FUND BALANCE [1] $9,975,000 $4,324,000 $2,038,000 $3,416,000 $5,304,000 REVENUES Rate Revenues [2] 10,398,000 14,457,000 15,903,000 16,698,000 17,533,000 Penalties 40,000 40,000 40,000 40,000 40,000
Service Orders/Job Orders 90,000 90,000 90,000 90,000 90,000 Interest Income 39,000 39,000 39,000 39,000 39,000
Miscellaneous Income 130,000 130,000 130,000 130,000 130,000 Total Revenue 10,697,000 14,756,000 16,202,000 16,997,000 17,832,000 EXPENSES Operating Expenses
Salaries and Benefits 1,782,000 1,996,000 2,136,000 2,286,000 2,446,000 Supplies and Equipment 1,363,000 1,353,000 1,394,000 1,436,000 1,479,000 Outside Services 235,000 231,000 238,000 245,000 252,000 City Services Allocation 1,065,000 1,065,000 1,097,000 1,130,000 1,164,000 GSA Fees 100,000 600,000 600,000 600,000 600,000
POB Principal 230,000 225,000 226,000 225,000 234,000 Chemicals 300,000 300,000 309,000 318,000 328,000
Utilities 1,645,000 1,645,000 1,694,000 1,745,000 1,797,000 Subtotal O&M 6,720,000 7,415,000 7,694,000 7,985,000 8,300,000 Net Operating Revenue 3,977,000 7,341,000 8,508,000 9,012,000 9,532,000 Debt Service Water Rev Refunding Bonds, Series 2013 1,128,000 1,127,000 1,130,000 1,124,000 1,134,000 Transfers Out (#570250) 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Addt'l Transfer to Capital Fund 6,000,000 6,000,000 3,500,000 3,500,000 3,500,000 Transfers to Capital Fund 8,500,000 8,500,000 6,000,000 6,000,000 6,000,000 Total Operations Fund Net Revenues (5,651,000) (2,286,000) 1,378,000 1,888,000 2,398,000 OPERATIONS FUND ENDING BALANCE 4,324,000 2,038,000 3,416,000 5,304,000 7,702,000 Operations Fund Reserve Target [3] 4,488,000 4,835,000 4,977,000 5,117,000 5,284,000 Operating Reserve Target Met? no no no yes yes Debt Service Coverage (Target = 1.20x) [4] 3.53 6.51 7.53 8.02 8.41 CAPITAL & RESERVE BEG. BALANCE [5] 10,582,000 9,237,000 2,349,000 181,000 4,597,000 Revenues Transfer from Operations Fund (#570250) 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Transfer from Operations Fund 6,000,000 6,000,000 3,500,000 3,500,000 3,500,000 Subtotal Capital Revenues 8,500,000 8,500,000 6,000,000 6,000,000 6,000,000 Capital Plan Expenses 9,845,000 15,388,000 8,168,000 1,584,000 8,684,000 Capital Fund Net Revenues (1,345,000) (6,888,000) (2,168,000) 4,416,000 (2,684,000)

CAPITAL & RESERVE ENDING BALANCE 9,237,000 2,349,000 181,000 4,597,000 1,913,000 1 - Estimated Water Operations Fund cash fund balance from City staff 2 – FY 2023/24 revenues are estimated based on 7 months at current rate revenues and 5 months with proposed rate increases 3 - Recommended targets is 6 months O&M Expenses plus annual debt service cost 4 - Net Operating Revenue divided by Total Debt Service 5 - Estimated Water Capital & Reserve Fund cash fund balance from City staff

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City of Hanford Page 22 Water, Wastewater, and Stormwater Utility Rate Study 2023

SECTION 4: WATER COST ALLOCATION AND RATE DESIGN

4.1 Water Cost Allocation
The water revenue requirement detailed in the previous section determines the total cost of providing service to be recovered from water rates, and in this section that revenue requirement is assigned to fixed and consumption charges to fairly recover costs from customers based on how they use the water system. Proposition 218 requires that agencies providing “property-related services” (including water utility service) set rates and charges that are based on the cost of providing those services and are proportional to how customers use the system.

4.1.1 Overview of Water Cost of Service Methodology
The purpose of the cost allocation is to classify costs and to determine the amount of revenue that will be recovered from fixed charges and from consumption charges. The American Water Works Association (AWWA) recommends methods to classify costs among various customers. Using the Base- Extra Capacity Method as recommended by the AWWA, water operating expenses are allocated to the following categories: (a) Base, (b) Extra, (c) Meters & Services, and (d) Customer Service. The Base and Extra categories are intended to recover variable (consumption) costs, while the Customer Service and Meters & Services categories are intended to recover fixed expenses that are incurred regardless of water used.

 Base: Base costs include the expenses related to providing water under average, “base” demand conditions.

 Extra: The extra category includes costs related to providing water above the system average demand (ie. related to peak, “extra” usage).

 Meters & Services: These include costs related to maintaining and replacing water meters and operating costs related to providing service at the maximum demand of each meter.

 Customer Service: This category contains costs associated with serving customers, such as billing and answering customer inquiries.

4.1.2 Cost Allocation
The cost allocation for the water utility is provided below in Table 11. The FY 2023/24 Budget is used as the test year for the cost allocation. Costs are allocated according to how they are incurred by the City.

Based on the proposed allocation, roughly 33.0% of costs will be recovered from the Fixed Charges while the remaining 67.0% will be recovered from Consumption Charges.

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City of Hanford Page 23 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 11: Water Cost Allocation City of Hanford Utility Rate Study Budgeted Expenses Budget FY
2023/24
Consumption
Charge Fixed Charge
Base & Extra Meters Customer Service

Operating Expenses
Salaries and Benefits $1,782,000 66.67% 16.67% 16.67%
Supplies and Equipment $1,363,000 60.00% 20.00% 20.00%
Outside Services $235,000 60.00% 20.00% 20.00%
GSA Fees $100,000 0.00% 50.00% 50.00%
POB Principal $230,000 66.67% 16.67% 16.67%
Chemicals $300,000 100.00% 0.00% 0.00%
Utilities $1,645,000 100.00% 0.00% 0.00%
Subtotal $5,655,000 $4,245,133 $704,933 $704,933

75.07% 12.47% 12.47%

City Services Allocation $1,065,000 75.07% 12.47% 12.47% Total Operating $6,720,000 $5,044,615 $837,693 $837,693

Non-Operating Expenses
Debt Service (5-year avg) $1,128,600 100.00% 0.00% 0.00% Water CIP Projects (5-year avg) [1] $8,733,800 56.36% 43.45% 0.19% Subtotal Non-Operating $9,862,400 $6,050,616 $3,795,184 $16,600

Total Expenses $16,582,400 $11,095,231 $4,632,876 $854,293 Proposed Cost Allocation % 66.91% 27.94% 5.15%

1 - Based on CIP projects over the next five years

4.1.3 Annual Revenue Requirement Allocation
To determine the total revenues that must be collected each year from fixed and consumption charges, the cost allocation percentages from Table 11 are applied to the total water rate revenue requirements from the cash flow projection (Table 10). The fixed charge revenue requirement is based on the Meters & Services and Customer Service categories from the cost allocation. The consumption charge revenue requirement is based on the Base and Extra categories.

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City of Hanford Page 24 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 12: Annual Revenue Requirement Allocation
City of Hanford
Utility Rate Study Cost
Allocation
%

PROJECTED - RATE STUDY PERIOD
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

Total Revenue
Requirement [1] $12,571,000 $14,457,000 $15,903,000 $16,698,000 $17,533,000

FIXED CHARGES
Meters & Services 27.9% $3,512,151 $4,039,071 $4,443,062 $4,665,173 $4,898,460 Customer Service Charge 5.2% $647,633 $744,796 $819,291 $860,248 $903,266 Total Fixed Charges 33.1% $4,159,784 $4,783,867 $5,262,353 $5,525,421 $5,801,726

CONSUMPTION CHARGES
Total Consumption Charges 66.9% $8,411,216 $9,673,133 $10,640,647 $11,172,579 $11,731,274

TOTAL 100.0% $12,571,000 $14,457,000 $15,903,000 $16,698,000 $17,533,000

1 – FY 2023/24 Revenue Requirement is if February 1 rates were to be in effect for 12 months

4.2 Billing Units

4.2.1 Meter Equivalents
The most common method to levy fixed charges is by meter size. AWWA guidelines recommend using meter equivalents to assign demand-related and service related costs to larger meter sizes. The ratio at which the meter charge increases is typically a function of either meter investment (estimated cost) or the meter’s safe operating capacity. The AWWA M1 Manual 7th Edition page 77 states “billing ratios are used to recognize that billing, metering, and collection costs for larger services may be greater than for smaller meter-size services. This may be due to difficulty in accessing the meter facility, replacement of meters, multiple dial meters, more customer service time associated with dealing with larger meter customers, and other factors.” These costs are reflected in the portion of Salaries and Benefits and Supplies and Equipment line items allocated to Customer Service and Meters in Table 11.

Moreover, larger meters have the ability to place a greater demand on the water system and are therefore charged based on that potential demand (or standby capacity). Water system components such as pumps, tanks, and pipelines are engineered and designed to meet maximum hour demand plus fire flow. The City incurs costs to maintain and operate these facilities at maximum capacity 24 hours a day, 365 days per year. For example, a customer that has a 6” meter has 20 times the capacity equivalency (flow rate) of a customer with a 5/8” or 1” meter. (A 6” meter has a safe operating capacity of 1,000 gallons per minute (gpm) compared to a 5/8” or 1” meter which has a safe operating capacity

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City of Hanford Page 25 Water, Wastewater, and Stormwater Utility Rate Study 2023

of 50 gpm). If all customers had 5/8” meters, the City would incur lower operating and capital costs as facilities would be smaller sized and more easily replaced and maintained. The AWWA M1 Manual 7th Edition page 152 states "this analysis considers that there is a minimum system in place to meet minimum service requirements regardless of use. The minimum needs are defined by determining the minimum size a system would be designed to meet minimum or average service needs (e.g., 4-in. service) not considering sizing for peak-day capacity needs or fire protection. The percentage of the distribution system related to meeting the minimum system needs would be applied to distribution-related costs and would be collected in the fixed charges. Incremental system sizing related to sizing the system to meet peak-day needs and fire flow requirements may also be considered for inclusion in the fixed charges.” These costs are staffing, maintenance, and capital expenses from Table 11 associated with providing capacity for the maximum flow rate of each meter.

Table 13 shows the existing number of meters by meter size and calculates the number of meter equivalents based on the AWWA recommended meter ratios. The base meter size for the City is the 5/8”, 3/4”, or 1” meter, representing over 94.0% of all meters served. The recalculation of meter equivalents for larger meter sizes will amend the fixed charges so that each meter size will be charged based on their proportional impact on the system.

Table 13: Number of Meter Equivalents (Total Inside & Outside City Accounts) City of Hanford
Utility Rate Study
Meter Size
No. of
Meters
Flow Rate
(gpm)
Meter
Ratio
No. of Meter
Equivalents
5/8", 3/4", & 1" 17,289 50 1.00 17,289
1-1/2" & 2" 882 100 2.00 1,764
3" & 4" 115 320 6.40 736
6" 14 1,000 20.00 280
8" 5 1,600 32.00 160
TOTAL 18,305 20,229
Flow rates taken from AWWA M1 Manual 7th Edition page 386

4.2.2 Projected Growth and Use
Table 14 shows an estimate of total water meters, water meter equivalents, and water use for the next five years. Customer growth is projected at 0.9% each year beginning in FY 2024/25 based on the projected annual growth rate from the City’s most recent Urban Water Management Plan by the Akel Engineering Group. Estimated current water use is based on billing data from the past two years less an

8.0% conservation factor to account for actual decreased water rate revenue in FY 2022/23.

Consumption is conservatively estimated to remain level through the first two years of the study period to account for conservation as customers adjust to the increased water rates. Beginning in FY 2025/26, water consumption is estimated to increase by 0.9% each year concurrently with growth in the customer base.

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City of Hanford Page 26 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 14: Projected Customer Growth & Water Consumption City of Hanford
Utility Rate Study CURRENT PROJECTED - RATE STUDY PERIOD 2022/23 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

NUMBER OF METERS

Growth Increase % [1] 0.00% 0.90% 0.90% 0.90% 0.90%

Total Water Meters 18,305 18,305 18,470 18,636 18,804 18,973

Total Meter Equivalents 20,229 20,229 20,411 20,595 20,780 20,967

WATER CONSUMPTION

Annual Increase % [2] 0.00% 0.00% 0.90% 0.90% 0.90%

Total Consumption [3] 4,324,846 4,324,846 4,324,846 4,363,769 4,403,043 4,442,671

1 - Table 3-2, Urban Water Management Plan by Akel Engineering Group projects an annual growth rate of 0.9% 2 - Projected water use for FY2024 and FY2025 reflect no growth in use as customers adjust to the new rate increases
3 - Note: Projected 2023 consumption is based on the average of FY 2020/21 and FY 2021/22 less 8% to account for observed conservation during FY 2022/23

4.3 Water Rate Design
To comply with Proposition 218, the following modifications to the existing water rate structure are proposed:
 Inside vs. Outside City Rates
 Eliminate the 10% surcharge for customers outside the City limits.

 Fixed Meter Charge
 Use the AWWA meter capacity ratios to calculate rates for the larger meter sizes. The re- alignment will amend the fixed charges so that each meter size will be charged based on their proportional impact on the system. This is in-line with industry standard practice and is the policy of most other local utility providers.

 Drought Rates
 Adopt a schedule of drought consumption charges whereby the rate per unit of water (ccf) for all customers will temporarily increase should the City declare a water shortage emergency. The drought rates are in alignment with the City’s existing Water Shortage Contingency Plan.

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City of Hanford Page 27 Water, Wastewater, and Stormwater Utility Rate Study 2023

4.4 Water Rate Derivation
Following the allocation of costs, the next step is to derive the total cost responsibility for each customer class by developing unit costs of service for each cost function and then assigning those costs to the customer classes based on the respective service requirements of each.

4.4.1 Fixed Meter Charge Calculation
Table 15 shows the rate derivation for the proposed Fixed Charge by meter size based on the AWWA meter equivalents from Table 13 and the total revenue requirements from Table 12. The customer service portion of the Fixed Charge is proposed to be the same for each customer regardless of meter size, whereas the meter equivalent portion of the fixed charge is proposed to be based on meter size.

The total Meters & Services revenue requirement is divided by the total number of meter equivalents.

The Customer Service revenue requirement is divided by the total number of accounts.

For 2023/24, the proposed meter equivalent charge of $14.47 is multiplied by the corresponding meter equivalent ratio to calculate a charge for each meter size. The customer service charge of $2.95 is then added to the meter equivalent charge for each meter size to calculate the total proposed fixed charge.

The proposed 2023/24 charge for a 5/8”, 3/4”, or 1” meter is $17.42.

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City of Hanford Page 28 Water, Wastewater, and Stormwater Utility Rate Study 2023

Table 15: Water Fixed Charge Derivation
City of Hanford
Utility Rate Study

PROJECTED - RATE STUDY PERIOD
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

REVENUE REQUIREMENT
Meters & Services $3,512,151 $4,039,071 $4,443,062 $4,665,173 $4,898,460 Customer Service Charge $647,633 $744,796 $819,291 $860,248 $903,266 Total Fixed Charge Rev. Requirement $4,159,784 $4,783,867 $5,262,353 $5,525,421 $5,801,726

METER EQUIVALENT CHARGE

Total Meter Equivalent Charge Revenue
Requirement 7.8% $3,512,151 $4,039,071 $4,443,062 $4,665,173 $4,898,460 Total Number of Meter Equivalents 20,229 20,411 20,595 20,780 20,967 Total Meter Equivalent Charge $14.47 $16.49 $17.98 $18.71 $19.47

Meter Equivalent Charge by Meter Size
Meter Size Ratio
5/8", 3/4", & 1" 1.00 $14.47 $16.49 $17.98 $18.71 $19.47 1-1/2" & 2" 2.00 $28.94 $32.98 $35.96 $37.42 $38.94 3" & 4" 6.40 $92.61 $105.54 $115.07 $119.74 $124.61 6" 20.00 $289.40 $329.80 $359.60 $374.20 $389.40
8" 32.00 $463.04 $527.68 $575.36 $598.72 $623.04

CUSTOMER SERVICE CHARGE

Total Customer Service Charge Revenue
Requirement 7.8% $647,633 $744,796 $819,291 $860,248 $903,266 Total Number of Meters 18,305 18,470 18,636 18,804 18,973 Total Customer Service Charge per
Account
$2.95 $3.36 $3.66 $3.81 $3.97

TOTAL MONTHLY FIXED CHARGE [1]

Meter Size
5/8", 3/4", & 1" $17.42 $19.85 $21.64 $22.52 $23.44 1-1/2" & 2" $31.89 $36.34 $39.62 $41.23 $42.91
3" & 4" $95.56 $108.90 $118.73 $123.55 $128.58
6" $292.35 $333.16 $363.26 $378.01 $393.37
8" $465.99 $531.04 $579.02 $602.53 $627.01

1 - Total Monthly Fixed Charge is the sum of the "Meter Equivalent Charge" by meter size plus the "Total Customer Service Charge per Account"

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City of Hanford Page 29 Water, Wastewater, and Stormwater Utility Rate Study 2023

4.4.2 Consumption Charge Derivation
Table 16 calculates the Consumption Charge for all customers based on the total revenue requirement from Table 12 and projected annual water consumption from Table 14. The proposed Consumption Charge is a single uniform tier in which all customer classes are charged the same rate for each unit of water consumption. The proposed FY 2023/24 Consumption Charge is $1.94 per ccf.

Table 16: Consumption Charge Rate Derivation
City of Hanford
Utility Rate Study

PROJECTED - RATE STUDY PERIOD
FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28

REVENUE REQUIREMENT
Total Consumption Charge Revenue
Requirement
$8,411,216 $9,673,133 $10,640,647 $11,172,579 $11,731,274

CONSUMPTION CHARGE DERIVATION
Revenue Requirement $8,411,216 $9,673,133 $10,640,647 $11,172,579 $11,731,274 Total Consumption (ccf) 4,324,846 4,324,846 4,363,769 4,403,043 4,442,671 Rate per ccf $1.94 $2.24 $2.44 $2.54 $2.64

CCF – hundred cubic feet; one hundred cubic feet equals 748 gallons

4.4.3 Drought Rate Derivation
It is recommended that the City implement a series of drought consumption charges which can be implemented during a water shortage emergency, allowing for financial stability during periods of reduced water sales. Drought rates are designed to cover costs at decreased levels of consumption. The City recognizes that ratepayers are already doing their part to conserve. Therefore, applying the drought surcharge to only the consumption charge component gives customers the increased ability to control a portion of their water bills. The proposed drought rates would be charged on a temporary basis and would be phased out when the City determined that water supply conditions had returned to normal and drought-related costs and revenue reductions had been recovered.

During times of water shortages, a water utility has two core objectives: 1) to reduce the amount of water customers consume, and 2) to cover the cost of operations. The two competing objectives work against each other because as less water is sold, it becomes more difficult to maintain adequate revenue to cover an agency’s costs. It should be noted that under drought conditions, certain expenses such as electricity, supplies, and equipment will decrease relative to the decrease in water use. However, other costs to operate the water system such as staffing and maintaining long-term supply remain the same.

The reduction in cost during drought conditions is reflected in the revenue requirements shown in Table

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Hanford City CouncilJanuary 16, 2024

Hanford City Council
January 16, 2024