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Home My WebLink AboutAgenda Packet 2006/02/21 ..."", lV' '-J' "_'v: r/", .'..;.: '1 v ,..J~;': it,:, j .' .... "-",' ""ployed by the City of C~lUla Vista :n Iii" Gfflce of the City Clerk and that I posted trllS nt on the bulletin board accordlll\] tv fe u/1I9n~. Signed ~~f?- ~~~~ ~- ~~ --:...- -~ CITY OF CHULA VISTA /!Jot Stephen C. Padilla, Mayor Patricia E. Chavez, Councilmell1ber David D. Rowlands, Jr., City Manager John McCann, Council member Ann Moore, City Attorney Jerry R. Rindone, Council member Susan Bigelow, City Clerk Steve Castaneda, Councilmember February 21, 2006 6:00 P.M. Council Chambers City Hall 276 Fourth Avenue CALL TO ORDER ROLL CALL: Councilmembers Castaneda, Chavez, McCann, Rindone, and Mayor Padilla PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . DID YOU KNOW...IT'S ABOUT OUR NEIGHBORHOODS? Presented by Leah Browder, Deputy Director of Engineering CONSENT CALENDAR (Items I through 3) The Council will enact the Consent Calendar staff recommendations by one . motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. APPROVAL OF MINUTES of the Special Meeting and the Regular Meeting of December 20,2005. Staff recommendation: Council approve the minutes. 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY'S PURCHASING AGENT TO ADD $65,000 TO AN EXISTING PURCHASE ORDER WITH ESGIL CORPORATION FOR BUILDING PLAN REVIEW SERVICES The City has a multi-year contract with Esgil Corporation to provide professional plan review services. Although the Planning and Building Department budgets $190,000 for these services each fiscal year, an initial purchase order of $125,000 is established and then amended on an as-needed basis. Staff estimates the need for the $65,000 balance through the end of the fiscal year. (Planning and Building Director) Staff recommendation: Council adopt the resolution. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A COOPERATIVE PURCHASE AGREEMENT WITH SOFTWARE HOUSE INTERNATIONAL IN THE AMOUNT OF $174,691.71 FOR VARIOUS MICROSOFT LICENSES REQUIRED FOR CITYWIDE NETWORK AND INDIVIDUAL COMPUTER WORKSTATION APPLICATIONS; AND AUTHORIZING AN OPEN-ENDED ARRANGEMENT WITH SOFTWARE HOUSE INTERNATIONAL FOR THE PURCHASE OF ADDITIONAL MICROSOFT PRODUCTS AS NEEDED Adoption of the resolution approves a cooperative purchase agreement with Software House International in order to purchase various Microsoft licenses that are needed for network and individual workstation applications; and allows the purchase of additional Microsoft products through January 2008. (Management and Information Services Director) Staffrecommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS The following items have been advertised as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 4. CONSIDERATION OF ACCEPTANCE AND APPROPRIATION OF EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT FUNDS The Police department has recently received notice of an Edward Byrne Memorial Justice Assistance Grant award in the amount of $57,305 from the Bureau of Justice Assistance. Acceptance and appropriation of these funds requires a public hearing per stipulations of the Justice Assistance Grant. (Police Chief) Staff recommendation: Council conduct the public hearing and adopt the following resolution: Page 2 - Council Agenda http://www .chula vistaca.gov February 21, 2006 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $57,305 FROM THE 2006 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT AND APPROPRIATING SAID FUNDS TO THE FISCAL YEAR 2006 POLICE GRANT FUND BUDGET (4/5THS VOTE REQUIRED) 5. CONSIDERATION OF THE CHULA VISTA 2006-2007 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM; THE HOME INVESTMENT PARTNERSHIP PROGRAM; THE EMERGENCY SHELTER GRANT PROGRAM (ESG); AND THE AMERICAN DREAM DOWNP A YMENT PROGRAM Each year the City undertakes a process to solicit and approve programs and projects for these grant funds. This report addresses the review of the 2006/2007 entitlement amounts as well as the requests for funding received from various City departments and local organizations. The purpose of this public hearing is to offer the residents, non-profit organizations and other interested parties an opportunity to provide input on the 2006- 2007 proposals well as the funding recommendations. (Assistant City Manager/Community Development Director) Staff recommendation: Council conduct the public hearing. ACTION ITEMS The items listed in this section of the agenda will be considered individually by the Council, and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 6. CONSIDERATION OF ADOPTION OF THE 2006 LEGISLATIVE PROGRAM (Continued from February 7, 2006) The Legislative Program represents the Council's position on items likely to be acted upon by the State Legislature, Congress, or administrative agencies. By adopting a Legislative Program at the beginning of each two-year legislative session and amending it at mid-term, Chula Vista is able to take a proactive role in sponsoring, supporting, or opposing bills related to the City's various legislative priorities. (Legislative Committee, Intergovernmental Affairs Coordinator) Staffrecommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE 2006 LEGISLATIVE PROGRAM 7. CONSIDERATION OF A PILOT PROJECT FOR SPANISH INTERPRETER SERVICES FOR CITY COUNCIL, REDEVELOPMENT AGENCY, AND CHULA VISTA REDEVELOPMENT CORPORATION MEETINGS AND WORKSHOPS City Council members have expressed a desire to have Spanish interpreter services available at Council and Redevelopment Agency meetings and workshops. Adoption of the resolution approves a pilot project for those services. (Assistant City Manager Thomson, Communications Director) Page 3 - Council Agenda http://www.chulavistaca.gov February 21,2006 Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PILOT PROJECT FOR SPANISH INTERPRETER SERVICES AT CITY COUNCIL, REDEVELOPMENT AGENCY AND CHULA VISTA REDEVELOPMENT CORPORATION MEETINGS AND WORKSHOPS AND APPROPRIATING FUNDS THEREFOR (4/5THS VOTE REQUIRED) 8. CONSIDERATION OF AN APPROPRIATION OF $125,000 FOR PARTICIPATION AT THE CALIFORNIA PUBLIC UTILITIES COMMISSION REGARDING ENERGY ISSUES Adoption of the resolution funds the costs of continuing the City's energy work before the California Public Utilities Commission through March 7, 2006 on the Renewable Portfolio Standards and other issues affecting Community Choice Aggregation and local ratepayers. (Conservation and Environmental Services Director) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $125,000 FOR PARTICIPATION AT THE CALIFORNIA PUBLIC UTILITIES COMMISSION ON ENERGY ISSUES, FROM THE AVAILABLE FUND BALANCE OF THE GENERAL FUND TO THE CONSERVATION & ENVIRONMENTAL SERVICES DEPARTMENT (4/5THS VOTE REQUIRED) OTHER BUSINESS 9. CITY MANAGER REPORTS 10. MAYOR'S REPORTS . CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING PLACEMENT ON THE JUNE 6, 2006 BALLOT OF THE CITIZENS' CHARTER PROPOSAL AS SUBMITTED 11. COUNCIL COMMENTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M Brown Act (Government Code 54957.7). 12. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c) . Two Cases Page 4 - Council Agenda htlp://www.chulavistaca.gov February 21, 2006 13. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(b) . Two Cases 14. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) . Duran v. City ofChula Vista (SDSC GIC847070) . Sanchez v. City ofChula Vista (USDC 04 0084 DMS (AJB) . Sidock v. City ofChula Vista (SDSC GIS15970) . Ray v. City ofChula Vista (USDC 03 CVI884 DMS) ADJOURNMENT to the Regular Meeting on February 28, 2006 at 6:00 p.m. in the Council Chambers. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and Page 5 - Council Agenda http://www .chulavislaca. gOY February 21,2006 activities. Please contact the City Clerk for specific information at (619) 691-5041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655. California Relay Service is also available for the hearing impaired. Page 6 - Council Agenda http://www.chulavistaca.gov February 21,2006 MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA December 20, 2005 5:55 PM. A Special Meeting of the City Council of the City ofChula Vista was called to order at 6:14 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Chavez, McCann, Rindone, and Mayor Padilla ABSENT: Councilmembers: Castaneda (excused) ALSO PRESENT: City Manager Rowlands, Senior Assistant City Attorney Marshall, and City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE The Pledge was led by Ms. Chavez' children, nieces, nephews and neighborhood children. SPECIAL ORDERS OF THE DAY . OATH OF OFFICE FOR NEWLY APPOINTED COUNCILMEMBER PATRICIA E. CHAVEZ City Clerk Bigelow administered the oath of office to Ms. Chavez. . COMMENTS BY COUNCILMEMBER CRA VEZ Councilmember Chavez thanked her family and fiiends for their support and Councilmember Davis for being her role model. She expressed her gratitude to the Council for the appointment and opportunity to serve. PUBLIC COMMENTS There were none. ADJOURNMENT Mayor Padilla adjourned the meeting at 6:32 p.m. to the Regular Meeting of January 10,2006, at 6:00 p.m. in the Council Chambers. ~~~~~ Susan Bigelow, MMC, ~ity Clerk /11. MINUTES OF A REGULAR MEETING OF THE CITY COlJNCIL OF THE CITY OF CHULA VISTA December 20, 2005 6:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:33 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Chavez, McCann, Rindone and Mayor Padilla ABSENT: Councilmembers: Castaneda (excused) ALSO PRESENT: City Manager Rowlands, Senior Assistant City Attorney Marshall, and City Clerk Bigelow PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE CONSENT CALENDAR (Items 1 through 8) Deputy Mayor McCann stated he would abstain on Item 8, as his residence is within 500 feet of the property. Councilmember Rindone asked, and received concurrence from Senior Assistant City Attorney Marshall, to have Councilmember Castaneda's request for an excused absence apply to the special meeting of December 20,2005, as well. 1. WRITTEN COMMUNICATION Memorandum from Councilmember Castaneda requesting an excused absence from the meeting of December 20,2005. Staffrecomrnendation: Council excuse the absence. 2. RESOLUTION NO. 2005-428, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAPS OF CHULA VISTA TRACT NO. 05-09, OTA Y RANCH VILLAGE SEVEN, UNIT ONE AND UNIT TWO; ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA THE EASEMENTS GRANTED ON THE MAPS WITHIN THE SUBDIVISIONS; AND APPROVING THE ASSOCIATED SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT, REQUIRING THE DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF RESOLUTION 2004-332 Adoption of the resolution approves two [mal maps within Otay Ranch Village Seven and supplemental subdivision improvement agreements for Otay Ranch Village Seven, Units One and Two. (City Engineer) Staffrecomrnendation: Council adopt the resolution. i ,-' I ! ;'-:5 - , CONSENT CALENDAR (continued) 3 A. RESOLUTION NO. 2005-429, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE RESUBDIVISION MAP OF CHULA VISTA TRACT NO. 01-09, EASTLAKE III VISTAS PHASE 2, MAP NO. 14404 B. RESOLUTION NO. 2005-430, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING THE IRREVOCABLE OFFER OF DEDICATION FOR OPEN SPACE LOTS "CC" AND "Y" OF CHULA VISTA TRACT NO. 01-09, EASTLAKE III VISTAS PHASE 2, MAP NO. 14404 Adoption of the resolutions approves the resubdivision map of a portion of the final map for Chula Vista Tract 01-09, Eastlake III Vistas Phase 2, and the rejection of the Irrevocable Offer of Dedication for Open Space Lots "CC" and "Y", to reflect lot line adjustments made within the property of Davidson Communities. (City Engineer) Staff recommendation: Council adopt the resolutions. 4 A. RESOLUTION NO. 2005-431, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHULA VISTA TRACT NO. 92-02A, ROLLING HILLS RANCH, SUB-AREA III, NEIGHBORHOOD II FINAL MAP; ACCEPTING ON BEHALF OF THE CITY THE VARIOUS PUBLIC EASEMENTS, ALL AS GRANTED ON THE FINAL MAP WITHIN THE SUBDIVISION; APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY THE SUBDIVISION; APPROVING THE ASSOCIATED SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS B. RESOLUTION NO. 2005-432, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENTS, LICENSE AND MAINTENANCE AGREEMENT BETWEEN MCMILLIN ROLLING HILLS RANCH, LLC AND THE CITY OF CHULA VISTA FOR THE MAINTENANCE OF PUBLIC RIGHT-OF-WAY WITHIN ROLLING HILLS RANCH SUB-AREA III, NEIGHBORHOOD II; AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT Adoption of the resolutions approves the Neighborhood II final map, its associated subdivision and supplemental subdivision improvement agreements, and a grant of easements, license and maintenance agreement for privately maintained public property. (City Engineer) Staff recommendation: Council adopt the resolutions. 5. RESOLUTION NO. 2005-433, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDERS REQUESTED BY OTAY PROJECT, L.P. ASSOCIATED WITH TRANSPORTATION DEVELOPMENT IMPACT FEE ELIGIBLE FACILITIES CONSTRUCTED FOR THE TELEGRAPH CANYON ROAD TRAFFIC ENHANCEMENT IMPROVEMENTS Page 2 - Council Minutes http://www.chulavistaca.gov December 20, 2005 /8--2- CONSENT CALENDAR (continued) Adoption of the resolution approves a variety of change orders related to phases one and two for the Telegraph Canyon Road traffic enhancement improvements. These change orders will be paid directly from bond proceeds reserved within Community Facilities Districts 06-I, 07-I, 08-I and 2001-2. (City Engineer) Staff recommendation: Council adopt the resolution. 6. RESOLUTION NO. 2005-434, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENTS BETWEEN THE CITY AND: (A) NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL SCIENCES CONSULTANTS; (B) MACTEC ENGINEERING AND CONSULTING, INe.; (C) SOUTHERN CALIFORNIA SOIL & TESTING, INC.; AND (D) KLEINFELDER, INC. TO PROVIDE ON CALL MATERIALS TESTING, GEOTECHNICAL AND BUILDING SPECIAL INSPECTION CONSULTING SERVICES REQUIRED FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS OR OTHER CITY PROJECTS; AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENTS ON BEHALF OF THE CITY The construction of public works infrastructure improvements and buildings requires the use of quality materials and construction methods to assure longevity and usefulness. To ensure that the City continues to obtain quality improvements, materials testing, geotechnical engineering, and special inspection services are needed for proj ects built with both public and private funds. Staff has completed the request for proposals and consultant selection processes for this service and has negotiated the proposed contracts. Adoption of the resolution finalizes the process and authorizes the Mayor to execute the agreements for the period of January I, 2006 to December 31, 2008, with options to extend the agreements for two additional years. (General Services Director) Staff recommendation: Council adopt the resolution. 7. RESOLUTION NO. 2005-435, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND ATCNANCOM CORPORATION, AND AUTHORIZING THE MAYOR TO EXECUTE THE AMENDMENT The current agreement between the City and ATCNancom, the City's public transit provider, does not include an agreement extension clause. Adoption of the resolution approves an amendment to the agreement to include an "option term(s)" clause, allowing the City to negotiate costs and service improvements for continuance of the service provided if so desired. (Public Works Operations Center Director) Staff recommendation: Council adopt the resolution. 8. RESOLUTION NO. 2005-436, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING RESOLUTION 2005-338 AUTHORIZING THE APPLICATION AND, IF AWARDED, ACCEPTANCE OF A RECREATIONAL TRAILS PROGRAM GRANT FROM THE STATE OF CALIFORNIA FOR THE REHABILITATION OF ROHR PARK RECREATIONAL TRAIL; AND AUTHORIZING THE COMMITMENT OF MATCHING FUNDS THEREFOR Page 3 - Council Minutes http://www .chulavistaca. gOY /8--3 December 20, 2005 CONSENT CALENDAR (continued) On October 4, 2005, the Council adopted Resolution 2005-338, authorizing staff to apply for grant funding for the rehabilitation of Rohr Park Trail under the Federal Highway Administration's Recreational Trails Grant Program. Additional language elements now required by the California Department of Parks and Recreation have been included in the amended resolution. (Public Works Operations Center Director) Staff recommendation: Council adopt the resolution. ACTION: Councilmember Rindone moved to approve staff s recommendations and offered Consent Calendar Items 1 through 8, headings read, texts waived. The motion carried 4-0 on Items 1 through 7 and 3-0-1 on Item No.8, with Deputy Mayor McCann abstaining. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. Mayor Padilla spoke regarding the holiday festival incident and the immediate steps taken, including direction to the City Attorney to develop a policy, placement of a full-page ad in the newsletter with an open letter from the Council, and personal apologies to the Church, dancers, their families, and any others who may have been offended by staff's action. PUBLIC COMMENTS Chaplin Emeritus McDougal of Post 21 thanked the City and Council for their full support at the Support the Troops rally, and expressed appreciation for their support of all faiths. Phil Magnan, representing Biblical Family Advocates, stated he was pleased with the public lighting of the menorah at the holiday festival and the Mayor for making it clear that he and the Council did not agree with the actions of the City employee. Marvin Winters, local business owner and resident, spoke regarding alleged first-hand knowledge of illegal discharging on City property by the Highland Group and subcontractors; a wrongful notice of violation and code enforcement activities at a friend's home; and his lack of tolerance for any City official making threats to any of his friends. Mayor Padilla referred this matter to staff. Brian Felber stated that he heard on the news of the holiday festival incident and the fact that the Mayor and Council had taken immediate corrective action to ensure something like this never happened again. It was unclear to him why anyone would pursue a lawsuit at this point. Additionally, he asked the Council to support tightened restrictions on sex offenders. Bishop Tomlinson stated that, on a positive note, the recent event at the holiday festival provided an opportunity to bring everyone together. Page 4 - Council Minutes http://www.chula vistaca.goy a . I b--4- December 20, 2005 PUBLIC COMMENTS (continued) David Krogh, speaking as a citizen rather than GMOC member, expressed concerns with City actions with regard to the use of pre-development impact fees for SR-125. Mayor Padilla noted that this matter would be referred to staff. Mayda McCandis expressed concern that political correctness has been taken too far in San Diego. Anna Padilla stated she was ashamed of what happened at the holiday festival and that she was going to be more involved in her community. Amy Corley stated she was upset to hear how the girls were treated at the holiday festival, but was appreciative that an apology was issued. ACTION ITEMS 9. CONSIDERATION OF ADOPTION OF A RESOLUTION SUPPORTING THE JESSICA'S LAW INITIATIVE The "Jessica's Law" initiative is a proposed statewide ballot initiative that strengthens the laws governing the release of sex offenders. This initiative is named after a nine-year-old Florida girl who was abducted and killed in March 2005. The initiative would require electronic monitoring of sex offenders using GPS tracking, prohibit sex offenders ITom going near schools, designate sex offenders as "sexually violent" after one offense, eliminate "good time" credits for reduced prison terms, and increase sentences and fines for sexual offenses. (Intergovernmental Affairs Coordinator) Earl Jentz, property owner/manager, stated that he agrees in concept with the issue but has a dilemma. Information about sex offenders is available on the Internet and affects renters' decisions about where to live. Legislation needs to help in the transition so landlords are not caught in the middle, because they cannot ask sex offenders to leave. Councilmember Rindone asked staff to investigate and report back on whether or not the League of California Cities intends to take a stand on either SB 588 or AB 231. ACTION: Deputy Mayor McCann offered Resolution No. 2005-437, heading read, text waived: RESOLUTION NO. 2005-437, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUPPORTING THE CONCEPT OF THE JESSICA'S LAW INITIATIVE The motion carried 4-0. Page 5 - Council Minutes http://www . chulavistaca.gov December 20, 2005 j [3 --5 OTHER BUSINESS 10. CITY MANAGER'S REPORTS There were none. II. MAYOR'S REPORTS · Appointment to the Legislative Committee Mayor Padilla moved to appoint Deputy Mayor McCann to the committee. Councilmember Rindone seconded the motion, and it carried 4-0. . · Appointment of an Alternate for San Diego Association of Governments Mayor Padilla moved to appoint Councilmember Rindone as the 1 st Alternate, and Deputy Mayor McCann as the 2nd Alternate, to the San Diego Association of Governments. Deputy Mayor McCann seconded the motion, and it carried 4-0. 12. COUNCIL COMMENTS Mayor Padilla stated he felt deeply privileged, honored and blessed to have the opportunity to serve this incredible community and wished everyone Merry Christmas, Happy Hanukah, Happy Kwanzaa or whatever the season meant to them. . Councilmember Rindone spoke regarding the Mayor's leadership and the major accomplishments over the past year. He then stated that he had received a petition in the mail requesting money from a group to stop the Chula Vista City Council from using eminent domain, a tactic he considered to be fear-mongering. He referred the item to the City Attorney for a report within 30 days. Additionally, he requested that, before accepting the new building from Highland, the air conditioning be fixed so that those on the dais are not freezing while the audience is too warm; and the letters above the archway into City Hall be centered and straightened and "Chula Vista" be added. He then wished everyone a Merry Christmas. Deputy Mayor McCann wished everyone a Merry Christmas. He also asked staff to (1) review the American Lung Association's report card the City received regarding the ability of teenagers to purchase cigarettes; (2) come back with recommendations to prohibit free tobacco sampling and new significant cigarette retailers in close proximity to schools, (3) analyze the effects of smoking in parks, and (4) review licensing and license violations. He then thanked his Council colleagues for the successes ofthe past year. Councilmember Chavez thanked everyone for their support and requested an update from staff on neighborhood collaboratives. City Manager Rowlands responded that a report would be forwarded to the Council in the packet this week. Page 6 - Council Minutes http://www ,chula vistaca.gov /8--0 December 20, 2005 COUNCIL COMMENTS (continued) Councilmember Rindone announced that the interviews for the Chula Vista Redevelopment Corporation are tentatively scheduled for January 19,2006. CLOSED SESSION Closed Session was cancelled, and the following item was not discussed. 13. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c) . One case ADJOURNMENT Mayor Padilla adjourned the meeting at 7:53 p.m. to the Regular Meeting of January 10, 2006, at 6:00 p.m. in the Council Chambers. -:- ~~~~-' Susan Bigelow, MMC, City Clerk Page 7 - Council Minutes http://www. chulavistaca.gov /[3--7 December 20, 2005 COUNCIL AGENDA STATEMENT ITEM No.: ~ MEETING DATE: 2/21/06 ITEM TITLE: Resolution of the City Council of the City of Chula Vista authorizing the City's purchasing agent to add $65,000- to an existing purchase order with Esgil Corporation for Building Plan Review Services . SUBMITTED BY: Director of Planning & BUildin~f;c 15. REVIEWED BY: City Manager fl ~ pR. 4/5THS VOTE: YES Nol SUMMARY: The City has a multi-year contract with Esgil Corporation to provide professional plan review services. Although Planning & Building Department budgets $190,000 for said services each fiscal year, an initial purchase order of $125,000 is established and then amended on an as needed basis. Staff estimates the need for the $65,000 balance through the end ofthe fiscal year. RECOMMENDATION: That City Council approve the resolution authorizing the purchasing agent to increase the existing purchase order. BOARD/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Background On August 19, 2003, Council approved Resolution 2003-363 approving a contract with Esgil Corporation to provide professional plan review services, and authorizing the City's Purchasing Agent to issue purchase orders in the amount of $125,000 for said services at the beginning of each fiscal year for the duration of the contract, contingent upon appropriation of funds during the budget process. In FY 2006, $190,000 is appropriated for these contract services, so no appropriation is needed at this time. A multi-year contract was awarded to Esgil after a formal consultant selection process, therefore there is no need for a contract amendment at this time. The 2-1 11 Page 2, Item No.: d-. Meeting Date: 2/21/06 services are provided at an hourly rate on an as-needed basis. The services are needed to give the City access to a larger pool ofresources for plan review, and to minimize delay in public services. The City has been using professional plan review services since 1987, and the services are used on an as-needed basis. During the first four months of this FY, staff had to rely heavily on the services of the consultant due to a staff vacancy in plan check and strong commercial activity. Prior Payments to Consultant During FY 2004, the City paid Esgil $124,954 for plan review services. In FY 2005, the City paid Esgil $124,364 for plan review services. In the first five months of FY 2006, the City has paid Esgil $104,787 for plan review services. FISCAL IMPACT: All costs of plan review services, whether performed by the City or Esgil Corporation, are borne by the applicant in the form of plan check fees. The plan check fees provide sufficient revenue to cover both the cost of the services provided by the consultant and the Department's administrative overhead costs. The cost to the applicant is the same, whether City staff or consultants provide the service. The $65,000 amount requested to be added to the existing purchase order is already included in the FY 2006 budget of the Planning and Building Department, so no additional appropriation is requested. H:\Bld_Hsg\BobMc\Al13 Esgil PO Extension 2-14-06.doc 2-2 RESOLUTION No. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORlZING THE CITY'S PURCHASING AGENT TO ADD $65,000 TO AN EXISTING PURCHASE ORDER WITH ESGIL CORPORATION FOR BUILDING PLAN REVIEW SERVICES WHEREAS, the City utilizes contract services for building plan review on a regular basis to help balance workload and assure timely customer service; and WHEREAS, the City has a multi-year contract with Esgil Corporation to provide said services, as approved in Council Resolution 2003-363; and WHEREAS, Planning & Building Department has budgeted for $190,000 of these services during FY 2006; and WHEREAS, Planning & Building Department is approaching the $125,000 limit on the existing purchase order and requires Council approval to increase the limit to the budgeted amount. NOW, THEREFORE, BE IT RESOLVED that the City of Chula Vista does hereby authorize the City's purchasing agent to add $65,000 to an existing purchase order with Esgil Corporation for Building Plan Review Services. Presented by Approved as to form by J. D. Sandoval Planning & Building Director A~/(1~ H:IBld_HsglBobMclEsgiI Roso 2-8-06.doc 2-3 COUNCIL AGENDA STATEMENT ITEM-2 MEETING DATE 2/21/06 ITEM TITLE: Resolution approving a cooperative purchase agreement with Software House International (SHI) in the amount of$174,691.71 for various Microsoft licenses required for citywide network and individual computer workstation applications and authorizing an open-ended arrangement with sm for the purchase of additional Microsoft products as needed. SUBMU IJ!;D BY: Director of Management and Information servic# Director ofFinan~/( REVIEWED BY: City Manager 11.1n ?K (4/5ths vote: Yes_No~ As the result of an internal audit and citywide implementation of various new Microsoft products as well as server upgrades, it has been determined that the City of Chula Vista must purchase additional software licenses to be compliant with licensing requirements. The City has successfully participated in a State of California master agreement with Microsoft Corporation (Microsoft Select) for the purchase of Microsoft products at discounted rates through approved Large Account Resellers (LAR). The total cost of the requested order to sm exceeds the City Manager's approval limit, and therefore requires Council approval. RECOMMENDATION: That Council adopt a resolution approving a cooperative purchase agreement with Software House International (Sm) in the amount of $174,691.71 for various Microsoft licenses required for citywide network and individual computer workstation applications and authorizing an open-ended arrangement with sm for the purchase of additional Microsoft products as needed. BOARDS/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: The State of California has negotiated favorable terms and pricing for a master agreement with Microsoft (called Microsoft Select) and a Software Licensing Program (SLP) with authorized Large Account Resellers. Consequently, discounts received for Microsoft products through the Large Account Resellers are greater than can be obtained on the open market The City of Chula Vista has participated in this type of master agreement since 1998 with favorable results. Agencies participating in the cooperative agreement receive all Microsoft programs on CD's. Programs may be previewed and installed at the City's discretion. For any retained programs, licenses must then be purchased within thirty days. Program updates, patches, fixes, and new releases are shipped every forty-five days. The City stays current with the latest Microsoft technology and licensing obligations are easily tracked. 3-1 -') Page 2, Item 2- Meeting Date 2/21/06 The City of Chula Vista has worked with Software House International (SIll) for the past several years and they have provided the City with favorable pricing and excellent service. sm is one of Microsoft's approved Large Area Resellers (LAR). Purchase of additional Microsoft products ITom sm would continue through 1/31/08, the duration of the current Software Licensing Program. Fiscal Impact: Approval of-this action will authorize the expenditure of funds for the purpose indicated ITom monies available in the adopted budget. . 3-2 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A COOPERATIVE PURCHASE AGREEMENT WITH SOFTWARE HOUSE INTERNA TION (SHI) IN THE AMOUNT OF $174,691.71 FOR VARIOUS MICROSOFT LICENSES REQUIRED FOR CITYWIDE NETWORK AND INDIVIDUAL COMPUTER WORKSTATION APPLICATIONS AND AUTHORIZING AN OPEN-ENDED ARRANGEMENT WITH SRI FOR THE PURCHASE OF ADDITIONAL MICROSOFT PRODUCTS AS NEEDED WHEREAS, as the result of an internal audit and citywide implementation of various new Microsoft products as well as server upgrades, it has been determined that the City of Chula Vista must purchase additional software licenses to be compliant with licensing requirements; and WHEREAS, the City of Chula Vista has successfully participated in a State of California Master Agreement with Microsoft Corporation (Microsoft Select) for the purchase of Microsoft products at discounted rates through approved Large Account Resellers (LAR); and WHEREAS, the City ofChula Vista has worked with Software House International (SRI), one of Microsoft's approved LARs, for the past several years and they have provided the City with favorable pricing and excellent service; and WHEREAS, the purchase of additional Microsoft products from SRI would continue through January 31, 2008, the duration of the current Software Licensing Program. NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does hereby approve a Cooperative Agreement with Software House International (SHI) in the amount of$174,691.71 for various Microsoft licenses required for citywide network and individual computer workstation applications, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHRE RESOLVED that the Mayor of the City ofChula Vista is hereby authorized to execute said open-ended Agreement with SRI for the purchase of additional Microsoft products as needed on behalf of the City of Chula Vista. Presented by Approved as to form by tm{\~~\\f-tro\~ Ann Moore \ City Attorney Louie Vignipiano Director of Management and Information Systems J:\Attomey\RESO\AGREEMENTS\Cooperative Agreement -- MIS (for Software House Int'I).doc 3-3 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL A= Moore City Attorney Dated:~<rJ\ ~4.~ \~ Cooperative Purchase Agreement with Software House International (SHI) for Various Microsoft Licenses Required for Citywide Network and Individual Computer Workstation Applications; and Authorizing an Open-ended Arrangement With SRI for the Purchase of Additional Microsoft Products as Needed 3-4 ....-----.- ------.- -. .-. .. - --- ---- 6100 Ne~ Road Reno, m 8951.1-1137 Fa: 775 826 0506 A ~ierosGft Company Microsoft. Volume Licensing Customer, Welcome to the Microsoft Volume Licensing Program. Enclosed is your copy of your new Volume Licensing Agreement with Mi.crosoft, which is now in effect with your company. By now you should have received an email notification Exom Microsoft regaxding acceptance of the temlS and conditions of your Volume Licensing Agreement The email notification contains cmrent contract info=ation such as licensing pools, participant contact information, and mote. In addition, to the electronic email acceptance letter, you should have received a second email from Microsoft with information regaxding an online resource, called Microsoft Volume Licensing Services (MVLS), contains detailed and confidential informatiori regarding your Microsoft Volume Licensing account, including transaction history, product downloads, and Volume Licensing Product Keys. . If you have not received your electronic acceptance notification or MVLS instructions please contact your Large Account Reseller or Enterprise Software Advisor for assistance. Keep this contract in a secure location. It is important that you imderstand all of the t=s and conditions contained within, and can access the information if questions arise. Thank you, Microsoft Licensing. GP 3-5 . MiG(osaft ... /j;~< ". '" I~>.r;jtl"<~,""",.w ~lclW\ii::t.W~~~",,,,.~~:: , ' -L!CenSe Microsoft Select Enrollment- State and Local Micros'Jft Business Agreement number (if applicable) Reseller or Microsoft affiliate to complete Select Agreement number Res~lIer or Microsoft affiliate to complete Select Agr'~ement Expiration Date Res.~/ler or Microsoft affiliate to complete .'.';.', Enrollment number Microsoft affiliate /0 complete ;;)/A Previous agreement number Resellsr to complete Previous agreement end date Reseller /0 complete This Micl'Osoft Select .Enrollment is entered into between the following entities, Each party will notify the other in writing if any of the information in the following tabie changes, . , er I I I Name of Entity ~ \ i \ 0 F' C- \\ '"' \ ,,\ \-) i ') 1~~ Street ad dress ;1 7 l,: i=()Ll,'H, City C-ll\.i. Ie, Country A... l( S II Microsoft Account ry1anager Name \ J ,.< i.c \., J I C /A., U e.- S~elTvince (- ' I Postal code ''lIe IC) Contact Name .p (j '-~t.'d'l IV LL"j6c:- I IV.:) (This peman handles access 10 online infor~a~on. and receive$ notices unless a different contact is provided below. Contact E-mail Address (required for online access) ,j c,:"cl'1' rJ.:) @ Q.. \. (:..'\""\1..\.\'1 -I) ;~tt...... 'c....... l,-S Phone l:\ '~'r'l - 1,;,3 c;'-f Fax 4,,\cl <'1''1-., '2,C") Microsoft Account Manager E-mail Microsoft Licensing, GP. 6100 Neil Road, Suite 210 - Reno, Nevada USA 89511-1137 - Dept. 551, Volume Licensin .' access and notices should be provided to someone or some place other than abov - this section: Nal11e of !:nlity c..it CO 0 C J., '^-Ic, Street adclress '17 '" l., Fe>" ~'ll\ \ i {,(.. '-,. I ") c- City, (~I\L; c Co~ntryl L,tS'1 SLG MicrosoH Select Enrollment v6.1 (North Americ:a) September 1, 2003 U,sf<, 0,,~ f ..tv l.. Stat~fProvince (/1- Postal code C' I "Ii (,) Contact name I -- () q I e. L/ l C ('ve:.... l C{' t<./,) Contact e.mail address U I I {~( .~ . cl.$ \ li,~ il./C" ":0::;/1.-(: 0j' C;, c. \4~ -L;'>I'; Phone &,/C( -&:,1/- 5 ()(!/ Fax ~'Ie;. '-/'7(., --5377 Cover Page Page 1 of7 3-6 If duplicate electronic contractual notices should be provided to someone or some place in addition to the above. complete this section: Naroe of Entity r O/!"fci Contact Name B rCbk-s C-Itv 0 CJ~ 10. S L~ 2...1 Street Address ,4vE- Contact EmaH Address (required for electronic J7t., FDU_i<:ftt notices) sbructs @; l!..(, cJ1Li(Q-()i5kr,c.!t- Ci~ IJ I~ ~i C!.A:rovince Phone C l-l[ct 1011 --3'l'7 - &30'1 Country Postal Code Fax LUA- '1' I '11 0 ~7 10 -- 3cr7- G-J 309 lL$ Definitions. When used in this enrollment, 'you" refers to the entity that signs this enrollment with us and 'we" or 'us" refers to the Microsoft entity that signs this enrollment. All other definitions in the Microsoft Select Agreement identified above apply here. Effective date. If you are renewing Software Assurance coverage (or similar upgrade protection) from one or more previous Microsoft agreements, then the effective date of this enrollment will be the day after the earliest expiration of such coverage. Otherwise the effective date will be the date this enrollment is signed by us. Where a previous Microsoft agreement is being used, your reselier will require the agreement number and agreement end date to complete the applicable boxes above. Term. This enrollment will expire on the date on which the Microsoft Select Agreement expires, unless It is terminated earlier as provided for in that Agreement. Representations and warranties. By signing this enrollment, the parties agree to be bound by the terms of this enrollment, and you represent and warrant that (i) you have read and understood the Microsoft Business Agreement (if any) and the Microsoft Select Agreement, including any amendments to those documents, and the product use rights, and agree to be bound by those; (ii) you are either the entity that signed the Microsoft Select Agreement or its affiliate; (Iii) during the initial term of this enrollment you expect to purchase licenses equal to at least 750 points; and (iv) the infonmation that you provide on each of the attached fonms is accurate. Non-exclusivity. This enrollment is non-exclusive. Nothing contained in it requires you to license, use or promote Microsoft software or services exclusiveiy. You may, if you choose, enter into agreements with other parties to license, use or promote non-Microsoft software or services. Microsoft Volume Licensing Web Sites (Note WC\\III.IJ<l'C')DUuf:Jn\ chm-:C'!Dlhc,cURls) Product Use Rights htto://mlcrosoft.comllicensinq/resources Product List htto:/Imicrosoft.comll icensinq/resou rces Microsoft Volume Licensing Services (MVLS) httos:/Ilicensi nq .microsoft.com (password protected site to view orders under this enrollment) SLG Microsoft Select Enrollment v6.1 (North America) September 1, 2003 Cover Page Page 2 of? 3-7 . ,. , - s to Micr;osoft should be sent to: Copies should be sent to: I, , Microsoft Law and Corporate Affairs One Microsoft Way Redmond, WA 98052 USA Volume Licensing Group (425) 936-7329 fax Microsoft Licensing, GP ,3100 Neil Road, Suite 210 Reno, Nevada USA 89511-1137 Jept. 551, Volume licensing . This enrollment consists of (1) this cover page, (2) the Software Assurance Election Form, and (3) the Reseller Information Form, Cfustomer Contracting Microsoft Affiliate l)IS tc. Microsoft Licensing, GP ------,--. ..!.~.. ~rinted mime:): i -.\01\\(; \ CCOC:I/..iS Printed title, - 1 T(ll~c-ht{'.5IIV(,- /t-Ge.u7-- Signature date d. 03jUC) Printed title ..1'",;':'- '~., '-.' - Signature date (dais Microsoft aff/1iate countersigns) FEB 2 4 2005 Effective Date . (may be differenf than our signature date) FEB 0 1 2005 SLG Microsof~ Select Enrollment v6.1 (North America) September 1, 2003 Cover Page Page 3 of7 3-8 Software Assurance Election Form 1. Software Assurance Membership election: To become a Softvvare Assurance Member, you must agree to purchase and maintain Softvvare Assurance for all copies of all products licensed under this enrollment from at least one product pool. For a description of benefits resulting from choosing one or more product pools below and additional details regarding the Softvvare Assurance Membership program, please consult your reseller or Microsoft account manager. .. Yes No Servers o o o ~ o Applications Systems Note: If you mark ''Yes'', we will not accept orders for Licenses without Software Assurance. 2. Election to renew Software Assurance (or similar upgrade protection): For an explanation of the circumstances under which you may renew, see subsection 3(a) (Placing orders) of the Select Agreement. (81 Yes, I am renewing. Software Assurance. SLG Microsoft Select Enrollment v6.1 (North America) September 1, 2003 Software Assurance Election Form Page 4 of7 3-9 Reseller Information Form Use this form to Identify your selected reseiler and have your reseller complete the Information below and acknowi'3dge your selection by signing below. ':)q I Street address ~~ (t,cv;e,j Dr City and :,tate/Provlnce and Postal Code 5,;'\11 <,sct. tJ\ 0667.~ Country USA Contact name i7. '. .r)",~.... Phone rt: ,Le.. '$S'{' 761(- f)88"i'> n)-l:;:L)S~ '1/;;)5 Emall address . i 6" h)s't"f7<.O\ Y-'"\ ':...{st....." ':'(J'-?'" Fax The unders gned confirms that the Reseiler information is correct. Name of Reseiler SI-I/ Signatun, Printed :ar~e'~ &i~r fc:fc. L- ;CC'"f)S :yG,' C)' ' I j- -.J~ f'r..:/,- IS . Printed tiiie' Date 2-/6-0S- SLG Microsoft Select Enrollment v6.1 (North America) September 1, 2003 Reseller Information Form 3-10 Page 5 of7 Appendix Media Shipping Information Form - Starter CD Kit Contact Phone: At your option, Starter CD kits and CD-ROM subscriptions relating to your Select Enrollment (identified above) wi1J be shipped to the address set out below. Terms used but not defined in this form have the meanings given to them in your enrollment. CD Kit Ship To Information (* indicates required information) Company Name * ' G..\ t {f' C-.h1..l14 VIsh=z Street ddress * DlA. r't h Ci Y an statt'JPrOvince. '. {. 11.s'\>:i Country and Postal Code L{ S A- Contact Name * h.OLd e.. LJ I IV,,- P l':( JJO Vf'- C)- Contact EmaiJ Address. . i ViC /.)ClP,q...,o@c;,ch,<{...-u,::,(,.,.c<;.. I,S Contact Pho)1e~umber;". - V 1/'- ..:J 00/ Contact Fax Number (0 IC - '-I7",-33fC "1' 1 '11 0 If you choose below to receive media, then upon our acceptance of your enrollment, we will send you your starter CO kit (media) in the language(s) you select. This starter CO kit will be provided at no additional charge, in order to permit you to exercise the license rights granted under your enrollment and the related Select License Agreement. You may also subscribe to updates in the form of CDs, or upon reasonable notice, electronic download or similar other means. If you need additional CO kits and updates, you may order these through your reseller for a fee. For a complete list of the contents of any kit, visit the web site at httc://selectua.mslicense.com. D I want to receive a starter CO kit (media) ~. I want to subscribe to receive kit updates. ~ I do not want to receive a starter CD kit (media) o I do not want to subscribe to receive kit updates The charges for any purchased media may be subject to sales taxes based upon where media delivery occurs. If you are exempt from sales taxes in the media delivery location, please provide the applicable sales tax exemption documentation with your enrollment. SLG Select EnroUment Media Order Form v6.1 (North America) September 1, 2003 Appendix Page 6 of7 3-11 Media Shipping Information Form - Starter CD Kit (Continued) For each language and group you wIsh to receIve, mark the correspondmg box wIth an X A IIcatlons Pool S stems POD! Windows Client Business Servers Pool . Language En !ish En lish/MultiLan ua e Arabic Brazilian Por1u uase Chinese 81m lified Chinese Traditional Chinese Traditional Hong Kong/Pan- Chinese Czech 0 Danish 0 Dutch 0 Finnish 0 French [] German' [] Greek 0 Hebrew [] Hun arian [] Italian [] Ja anese [] Korean [] Norwe ian [] Pan Chinese [] Polish [] Portu uase [] Russian [] S aolsh [] Swedish [] Thai 0 Turkish 0 0 0 0 . Mapping Kit is not available for use in or shipment to, India, Morocco. Pakistan, China, Hong Kong SAR, Macau SAR, and Turkey o o o o o o o o o o o o o o o o o o o Office Famil Mapfing Windows Servers Server A liealions - Not Available . SLG Select Enrollment Media Order Form v6.1 (North America) September 1, 2003 Appendix 7017 3-12 Microsoft- fURCHASING DIVI5!O;~ 03 JUL -3 AM 10: ~3 July 2003 Dear Valued Volume licensing Customer, We are pleased to provide you with the quarterly update to the Microsoft Product Use Rights (PUR). The PUR provides use rights and restrictions not only for the products you choose to license, but for all products currently offered through the Microsoft Volume Licensing programs. Following the table of contents, you will find a summary of the new product use rights that become effective with this update, starting July 1, 2003. It is important for you to review and understand the relevant use rights and restrictions before you deploy your licensed products to help ensure that you comply fully with these terms. We encourage you to contact your Microsoft account manager or reseller with any questions regarding volume licensing compliance. Please distribute copies of this PUR to the employees in your company who are responsible for ensuring compliance with product licenses. For details on if and when you will be able to license a particular product or version under your license agreement, please refer to the Product List at www.microsoft.com/businessllicensina or contact your Microsoft account manager or reseller. We weicome your feedback on how we can continue to improve Microsoft Volume Licensing and your overall Microsoft experience. We encourage you to contact your Microsoft Account Representative or reseller with feedback or questions. Thank you for your business with Microsoft. Best regards, MICROSOFT VOLUME LICENSING Enclosure 3-13 . Microsoft Licensing Product Use Rights . 3-14 . Microsoft Product Use Riqhts 1 Table of Contents Table of Contents ....................................."........................".................... 2 Highlight of Changes to Product Use Rights ...............................13 Summary of Product Use Rights ................................................... 14 Product Use Rights for Applications...............................................................14 Product Use Rights for Systems .................................................................... 15 Product Use Rights for Servers .........................................................:........... 16 Product Use Rights for Developer Tools........................................................ 17 Definitions and General Use Rights and Restrictions .................19 I. Definitions...... ...... ................ .......... .......... ............................... ............. ....... 19 II. General Use Rights and Restrictions......................................................... 19 A. Prerelease Code. ...................................................................................................................... 19 B. Updates and Supplements........................................................ ................................................ 19 C. Remote Assistance........................................................................................................... ........ 19 D. Speech/Handwriting Recognition. .............................................................. ............................... 19 E. Consent to Use of Data................................................................. ............................................20 F. Links To Third Party Sites. ........................................................................................................ 20 G. No "Multiplexing" or "Pooling." .................................................................................................. 20 H. No Commercial Hosting............................................................................................................20 I. Redistributable Components-No Warranty...............................................................................20 J. Software Assurance Benefits ....................................................................................................20 K. Volume License Product Keys. ................................................................................................. 20 L. Termination...... .............. ......... .................................. .................... ............................................ 20 M. Reservation of Rights. ............................................................... ...............................................20 Microsoft Applications .............. ................................... .......... ......... 21 I. General License Grant................................................................................ 21 A. GeneraL....... .... ........ ..... .... ........ .... ........ ..... ...... ...... ............ ........... ...... ........ .......... .... .... ... ...... ... 21 1. Installation and use................................................................................................................21 2. License Grant for Remote Access Technologies. ..................................................................21 3. License Grant for Remote Assistance. ................................................................................. 21 4. Media Elements....... ....... ............................ ..................................... ................................ ...... 21 5. License Grant for Documentation. ..............................:.......................................................... 21 6. License Grant for Templates. ...............................,................................................................ 21 B. Description of other rights and limitations ................................................................................ 21 1. Volume License Product Key Validation. . ................................................................................ 22 2. Internet-Based Services. ....................... .................................................................... ............ 22 3. Report-Writing Runtime Software Limitations. .......................................................................22 4. SharePoint Team Services. .................................................................... ...............................22 5. Office Resource Kit and PowerPoint Viewer. ....................................................................... 22 6. Office Web Component. ........................................................................................................22 II. Exceptions.. .... ..... ..................... ... .... .... ... ........ ....... .... .... ... ..... ........ ...... ...... 22 Microsoft Product Use Rights 11\............,....,...\ IC~...I;...&-.\ 11..I.,"Iron~\ fab}eq" Contents 2 . A. Encarta Deluxe 2003 and Encarta Reference Library 2003 ...................................................... 22 1. Electronic Literature..... ................................................ ............................................ .............. 22 2. Digital Rights Management....................................................................................................22 3. Mandatory Operating Systems Software Upgrades. .............................................................. 23 B. Encarta Online Deluxe ..............................................................................................................23 C. FrontPage ..... ........ ..... ................. .............................. ..... ............................... ............... ............ 23 1. Restrictions on use of FrontPage Web Components. ............................................................23 D. MapPoint, Streets & Trips, and AutoRoute ............................................................................... 23 1. Systems Administrators.....;........................................................ ........................ ............. ...... 23 2. Permitted Use of Maps and Other Content. ........................................................................... 23 3. Restrictions...... .................................... ......... .................................................. ................. ...... 23 E. Multilingual User Interface (MUI) (formerly, Multi-Language) Pack ...........................................24 F. Press Step by Step Courseware ............................................................................................... 24 G. Windows Media Producer 1.0...................................................................................................24 1. Use of Templates. ................................................................................................................. 24 2. Derivative Works; Redistribution Rights................................................................................. 24 H. Visio 2002 (Standard and Professional Editions and Visio Enterprise Network Tools) .............. 24 1. Systems Administrators. ........................................................................................................24 2. Additional Microsoft Visio Network Equipment Shapes. ......................................................... 24 3. Visio Enterprise Network Tools. .............................................................................................25 I. Virtual PC........ ............ ....... .................. ................... ....... ................................. .................. ......... 25 J. Work at Home ("WAH") .............................................................................................................25 K. Works.. .............. .............................. ........................................... ........ ......................................25 Microsoft Systems . ......................................................................... 26 I. General License Grant... .................. ............. ................ ............. ........... ...... 26 A. Installation and Use. ................................................................................................................. 26 B. Volume License Product Key Validation ................................................................................... 26 C. Device Connections. ......................... .......................................... ...... ........................................ 26 D. MultiLanguage Versions. ..........................................................................................................26 II. Exceptions ................................... ......... ........ .............. ........... ............... ..... 26 A. Windows XP Professional...........................................;.............................................................26 1. Remote Desktop/Remote Assistance/NetMeeting. ................................................................26 2. Description of other rights and limitations. ............................................................................. 27 a. Digital Rights Management............................................................. ....................... ............... 27 b. Windows Media Format Software Development Kit ("WMFSDK"). ........................................ 27 c. Internet Gaming/Update Features.........................................................................................27 d. Intemet-based Services Components...................................................................................27 3. Additional Software/Services. ......................... .......................................................................27 B. Windows XP Embedded ...........................................................................................................'27 a. Terminal services protocols. ..........................................;.......................................................27 b. Maximum number of devices connected to Embedded System. ............................................ 27 c. Product keys. ............. ........ ...... ............. ......................... ................. .......................... ....... ...... 28 d. User interfaces. .. ............ ..................................... .......... ......... ................................. ...... ........ 28 e. "Prerelease" files. ..... ...... .................. ............................................ ........ .............. ..... .............. 28 f. Deployment via SDI2HD.... ................................... ......................... ......................................... 28 g. Microsoft Windows Server products. .....................................................................................28 h. Security updates for users of secure content. .......................... .............................................28 i. Use of NetMeeting/Remote or Assistance/Remote features. ..................................................28 j. Use of internet-based services ..features.........;...................................................................... 28 ~ Additional software or related services................................................................................... 29 I. Windows Media Format Software Development Kit ("WMFSDK"). .......................................... 29 m. Use of Device Update Agent. ............................................................................................... 29 Microsoft Product Use, Riahts 3-16 Table of Contents 3 n. Open source code software ...................................................................................................29 C. Windows Pre-installation Environment...................................................................................... 29 1. Installation and Use. .................................... ..........................................................................29 2. Documentation. ........ ................. ......... ......... .............................. ................. .............. .............29 3. Description of Other Rights and Limitations. .................................................................:........ 29 D. Corporate Error Reporting (CER). ............................................................................................ 29 Microsoft Servers ........... ...... .......... II ........1. ... ........ ............... ... ... ...... 30 I. Definitions and General Use Rights and Restrictions.................................. 30 A. Definitions................. ........................ ................. ................. .......... ........... ...... ............ ...... ......... 30 B. CAL (and certain other access license) Requirements.............................................................. 30 1. Single Licensee ..................................................................................................................... 30 2. Version Matching............................... .................................... ..................... ....... ......... ........... 30 ............................................................................................................................................~ 3. Per Seat or Per Server. .......................................................................................................... 31 .........................................................................:..,.....................................................................31 4. Reassignment. .... ............... ............. .... ............................................ ...... ....... .........................31 5. Administration........ ................................ ............ ........................... ........ ...... ......... ...... ............31 6. Limited Access by Other Devices. ......................................................................................... 31 C. Benchmark Testing.......................................... ............. ......... ..................................................31 D. Software Assurance Product Support Services ........................................................................ 31 E. Other Licenses. ... ...... ............................ ...................... ...................................... ........ .......... ..... 32 F. Other General Rights and Restrictions......................................................................................32 II. Product Specific Use Rights and Restrictions ............................................ 32 A..................................................................................................................................~ Application Center 2000 ............................................................................................................. 32 BizTalk Accelerator for Financial Services 1.0 Standard Edition ................ .................................32 BizTalk Accelerator for Financial Services 1.0 Enterprise Edition ...............................................32 BizTalk Accelerator for HIPAA 1.0 .............................................................................................. 32 BizTalk Accelerator for HIPAA 2.0 Standard Edition ................................................................... 32 BizTalk Accelerator for HIPAA 2.0 Enterprise Edition .................................................................32 BizTalk Accelerator for RosettaNet 1.1 Standard Edition ............................................................ 32 BizTalk Accelerator for RosettaNet 1.1 Enterprise Edition ..........................................................32 BizTalk Accelerator for RosettaNet 2.0 Standard Edition ............................................................ 32 BizTalk Accelerator for RosettaNet 2.0 Enterprise Edition .......................................................... 32 BizTalk Accelerator for Suppliers 1.0 .......................................................................................... 32 BizTalk Adapter for MQSeries 1.0 Enterprise Edition.................................................................. 32 BizTalk Adapter for SAP 1.0 ....................................................................................................... 32 BizTalk Server 2002 Standard Edition ........................................................................................32 BizTalk Server 2002 Enterprise Edition....................................................................................... 32 Commerce Server 2002 Standard Edition...................................,...............................................32 Commerce Server 2002 Enterprise Edition .................................................................................32 Content Management Server 2002 Enterprise Edition ................................................................ 32 Host Integration Server 2000 ("HiS").........................................................................:................. 32 Identity Integration Server 2003 Enterprise Edition ..................................................................... 32 Internet Security and Acceleration Server 2000 ("ISA")............................................................... 32 1. Products other than Standard Editions of BizTalk 2002, BizTalk Accelerator for Financial Services. BizTalk Accelerator for RosettaNet and BizTalk Accelerator for HIPAA. ....................32 a. License Structure........................ .................. ...... ...................... ..... .............. ......... ............... 32 b. License Grant ......................................................... .............................................................33 2. Standard Editions of BizTalk 2002 and BizTalk Accelerator for Financial Services and BizTalk Accelerator for RosettaNet and BizTalk Accelerator for HIPAA ................................................. 33 3. ISA Server................................... ................. ....................... ...... ..... ...... ...... .................. ......... 33 Microsoft Product Use Rights i-;b1iof Contents 4 ,,,----'---, "'-- ,. ., .. . ---_. . . 4. BizTalk Adapter for MQSeries ...............................................................................................33 5. Client Software.................... .................. ......... ......... ................... ................................ ...........33 6. Device Access ..... ........... ......... .............. ........ ............................. .............. ............................. 33 7. BizTalk, Commerce Server, HIS Server and ISA Server Use of Redistributable Software ("SDK Software"). ................... ............. ................... ................ ............................................. ...... 33 8. BizTalk 2002 and Commerce Server 2002 Identified Software.............................................. 33 9. Use of Host Security Integration Feature............................................................................... 33 10. BizTalk Accelerator for Financial Services and BizTalk Accelerator for HIPAA and BizTalk Accelerator for Suppliers - Use of Schemas ............................................................................. 33 11. Identity Integration Server.................................................................................................... 34 B. BackOffice 2000 Server CAL ....................................................................................................34 1. Types of BackOffice 2000 Server CALs................................................................................. 34 2. BackOffice 2000 Server Device CAL and User CAL Use Rights........................................... 34 C. Small Business Server 2000 ("SBS 2000") ............................................................................... 34 1. Server Use Rights. ................................................................................................................34 a. Installation and Use-Server Software. ................................................................................ 34 b. Client Software. .................................................................................................................... 34 c.. SBS 2000 CAL Requirements. .............................................................................................34 d. Health Monitor 2.1. ...............................................................................................................34 e. Shared Fax Service and Shared Modem Service-Client Access. ......................................... 34 f. Use of Administrator Tools. ...................................................................................................35 g. Use of Redistributable Components. ...................:................................................................ 35 2. CAL Use Rights. ........:...........................................................................................................35 D. Class Server 2.0 and 3.0 ..........................................................................................................35 1. Server Use Rights .................................................................................................................35 a. Installation-Server Software. .............................................................................................. 35 b. Client Software. ....................................................................................................................35 c. Student Access.................. ............... ..................... .................. ............................................. 35 d. Remote Access. ...................................................................................................................35 e. Curriculum Standards Database. ..........................................................................................35 f. Mandatory Operating Systems Software Upgrades. .............................................................. 35 2. Student Access License Use Rights. ..................................................................................... 35 E. Core CAL.......... .................... ................ .......... ......................... ...... .......... ................................. 35 1. Core CAL Server Products ....................................................................................................35 2. CALs ...................................... ........... ......... ..... .............. ........... ................. ................ ............ 35 3. Types of Core CALs .............................................................................................................. 35 4. Core Device and User CAL Use Rights. ................................................................................ 36 F. Exchange Server 2003, Standard Edition and Exchange Server 2003, Enterprise Edition ........ 36 1. Server Use Rights .................................................................................................................36 a. Installation, Server Software. ................................................................................................ 36 b. Installation, Client Software. ................................................................................................. 36 c. Microsoft Office Outlook Standard 2003. .............................................................................. 36 d. CALs..... ....................... ......................... ...................... ....................... ................................. 36 1. Client Access License ("CAL") Requirements..............................,...................................... 36 2. Types of CALs. ....................................................................... ,..........................................36 e. CAL downgrades. .................................................................................................................36 2. Exchange Server 2003 External Connector........................................................................... 36 a. Introduction....... ................. .................................... ............................... ................. ............... 36 b. Access to the Server ..Software............................................................................................ 36 c. Downgrades. ................................... .................. ................................... .......... ...................... 36 3. Exchange Server 2003 CAL Use Rights. ............................................................................... 37 G. Exchange 2000 Server and Exchange 2000 Conferencing Server" ........................................ 37 1. Exchange 2000 Server Use Rights. .......................................................................................37 a. Installation-Server Software. ..............................................................................................37 Microsoft Product Use Rights 3-18 Table of Contents 5 b. Client Software. .... .............. ....... ........................ .......................................... ........ ................. 37 c. Exchange 2000 Server CAL Requirements. ......................................................................... 37 d. Mode of Deployment ...........:........................................................................... .....................37 e. Upgrades from BackOffice Server or SBS. ........................................................................... 37 2. Exchange 2000 Conferencing Server-Server Use Rights. ................................................... 37 a. Installation-Server Software. .......... .................................................... ................................ 37 b. Client Software. .................................................................................................................... 37 c. Exchange 2000 Conferencing Server CAL Requirements..................................................... 37 d. Limited Access by Other Devices. ........................................................................................ 37 e. Mode of Deployment .............................................................................................................37 f. Installation of Server Software on Fail-over Server. ............................................................... 37 3. CAL Use Rights. .................................................................... ................................................ 38 H...........................................................,.......................................................................................38 Mobile Information Server Enterprise Edition 1.0.......................................................................... 38 Mobile Information Server 2002 .................................................................................................... 38 Mobile Information Server 2002- .................................................. ................................................38 ActiveSync Edition ............ ........................ ............................ .............. ........................ ........... ....... 38 1. Server Use Rights. ................................................................ ................................................38 a. Installation-Server Software. .............................................................................................. 38 b. CAL Requirements. .............................................................................................................. 38 c. Mobile Information Server Enterprise Edition and Mobile Information Server 2002. .............. 38 d. Outlook Mobile Access License Requirements. .................................................................... 38 e. Limited Access by Other Devices. ........................................................................................ 38 2. CAL and OMAL Use Rights. .................................................................................................. 38 I. Office SharePoint Portal Server 2003......................................................................................... 38 1. Server Use Rights ................................................................................................................. 38 a. Installation, Server Software................................................................................................. 38 b. Installation, Device Software ................................................................................................ 38 c. CAL Requirements. ..............................................................................................................38 d. Component Data Storage. .................................................... ................................................39 2. Office SharePoint Portal Server 2003 External Connector..................................................... 39 a. Introduction .............. ...................... ................... ............................ .................. ................. ....39 b. Access to the Server Software ............................................................................................. 39 c. Downgrades........ ...................... ....................................... .............................................. ...... 39 3. Office Share Point Portal Server 2003 CAL Use Rights. ........................................................ 39 J. Office Project Server 2003 ........................................................................................................ 39 1. Server Use Rights ................................................................................................................. 39 a. Installation, Server Software. ........................ .............................. ................. ......................... 39 b. Installation, Device Software ................................................................................................ 39 c. CAL Requirements. .............................................................................................................. 39 2. Office Project Server 2003 External Connector ..................................................................... 39 a. Introduction.................. ................... ............................. ........................................................39 b. Access to the Server Software ............................................................................................. 39 c. Downgrades............. ......................................... ........................................ ............ ............... 40 3. Office Project Server 2003 CAL Use Rights. .............................................................................40 K. Operations Manager 2000 ........................................................................................................ 40 1. Server Use Rights. ................................................................................................................40 a. Definitions.. ........... ...................................................................................... .........:...............40 b. License Structure ................... ........ ................ .............................................. .......... .............. 40 c. License Grant ...................................................................... ................................................ 40 i. Server Software. ................. ................................. .................... ........................... .............. 40 ii. Client Software........... ........................ ........ ............................................... .......... .............. 40 Iii. Other Software..................................... ................................... ................. ............. ............ 40 d. Special note for Microsoft SQL Server.................................................................................. 40 Microsoft Product Use Rights t;;b}e ~f Contents 6 111........,...;~__, 11::"__1:_1...' , '..1.. .................., e. Administration. .... .....,... ........ ........ ............. ....... ........... ....... ................ ... ........................... ..... 41 L. Project Server 2002 ..... ............ ......... ... ........ ........ ................ ........ ........ ....... .... ................... .......41 . 1. Server Use Rights. ................................................................................................................41 a. Installation-Server Software. . ....... ..... ......................... .................. ................ .......... ............41 b. Client Software. . ...... ... ..... ... ... .... .......... .................. ... ... ... ...... ......... ....... ........ ...... ..... ..... ........ 41 c. CAL Requirements. .... .... ....... ... ............ ........ ...... ..... ....... ...... ..... .,... ................ ...... ........ ........41 d. Installation Of Server Software On Passive Fail-Over Server. ..............................................41 e. SharePoint Team Services. . ................ ...... ................ ..... ........... ......... ... ..... .......... ....... .........41 f. Project Web Access Components. ........................................................................................41 2. CAL Use Rights. ...... ...... ........... ............ ....... .... ............ ......... ..... ........ ................. ............... ....41 M. Real-Time Communications ("RTC") Server 2003, Standard Edition........................................ 41 1. Server Use Rights ..........................,......................................................................................41 a. Installation, Server Software.... .... ....... ...... ........ .......... ........ ..... .......... ............ .... .... ............ ...41 b. Installation, Device Software ....... ...... ...... .......................... ............... .... ...... ... ........... ......... ...41 c. CALs ......... ... ........ ....... ..... ....... ...... ..... .... .............. .................. ....... ... .... ........ ....... .... ........ .....41 ii. Types of CALs..... .............. .......... ......... .......... ..... ........ .... ... .......... ...... ...... ........ ..... ..... ... .....41 iii. Devices or Users not Registering Presence. ...................................................................... 42 2. Real-Time Communications ("RTC") Server 2003 External Connector ..................................42 a. Introduction .......... ..... ......... ................ ... ........ ....... ....... ... ...... ..... .... ........ ....... ...... ........... .......42 b. Access to the Server Software ............................................................................................. 42 3. Real-Time Communications ("RTC") Server 2003 GAL Use Rights. ......................................42 N. Services for NetWare 5.02.. ..................... ..... .... .......... ......... .... ........ ...... ...... ........ ............ ......... 42 1. Installation-Server Software. .. ............ ..... .... ........ ............... ......... ...... ... ............ ... ....... ......... 42 O. Share Point Portal Server 2001.................................................................................................42 1. Server Use Rights. ........ ........... .................. ....... ................... ......... ... ..... ...... ......... .... ... ...... ....42 a. Installation-Server Software. . .... ..... ........ ............ ............. .... ... ....... ..... .................... ............ 42 b. Client Software. .... ............ .... ....... .... ....... ..................... ...... .... ........ ............... ...... ..... ............. 42 c. CAL Requirements. . .... ........ ........... ........ .............. ........ ..... .... ... ..... ...... ... ........ ...................... 42 i. General. ... .... ....... ........... .... .................. ........,....... ...... ................... ..... ......... ...... .......... ........42 ii. Limited Access by Other Devices .......................................................................................42 d. Additional License Grant for System Administrators. ............................................................42 2. External Connector for Non-Employees........ ....... .... ................... ..... ..... ... .... .......... ... .... ......... 42 3. CAL Use Rights. ...... ....... ...... ................ ............. ........ ...... ........... .... ..... ........ ...... ........... .... .....42 ~......................................................................................................................................,..........~ SQL Server 2000 ............... .... ..... ................. ............... ............. ..... ......... ..... ..... ....... .... .......... ..... ...43 SQL Server 2000 Runtime CSQL 2000 Runtime") ........................................................................ 43 1. Server Use Rights. ................................................................................................................43 a. Per Seat (with GALs) Licensing ............................................................................................ 43 i. Installation-Server Software. ............ ...... ......................... ......... .......... ..... ......... ........ .... .....43 ii. Glient Software. ......... ..... ......... ......... ... ... ........................... ...... ............ .......... ..... ....... .... .....43 iii. Types of SQL Server 2000 GALs .......................................................................................43 iv. Mode of Deployment. .... ....... ......., ......... ........ ........ ........... ...... ........ .... ..... ..... ............ .... .....43 v. SQL Server 2000 CAL Requirements. ................................................................................43 vi. Installation of Server Software on Passive Fail-Over Server. ............................................. 43 b. Per Processor Licensing.................. ... ....... .... ........... ........... ......... .... .......... ................. .... ..... 43 i. License Structure .. ...... ........... ......... ......... ... .... ........ ...... ..... ............... ... ........ ....... ....... .........43 ii. License Grant. ........ ..... ...................... ......... .... ........ ..................... ..... ........ ............. .... .........43 iii. SQL Server 2000 Device Access. ......................................................................................44 iv. SQL Server 2000 Runtime Device Access......................................................................... 44 v. Installation of Server Software on Passive Fail-Over Server............................................... 44 vi. Redistributable Code. .. .... ............ ........ ................ ........ .......... ........... .................. ... ...... ......44 vii. Runtime-Restricted Use Software. ...................... ...... ..... .... ... ......... ... ..... ......... ........ .... ...... 44 2. CAL Use Rights. ....... ....... ..... ........... ........ ................ .......... ........ ........... ... ...... .... ... ....... .... ......44 Q. System Management Server 2.0 ("SMS") .................................................................................44 Microsoft Product Use Rights 3-20 Table of Contents 7 1. Server Use Rights. ................................................................................................................ 44 a. Installation-Server Software. .... ............ .................. ...... ..... .............. ...... ............... .............. 44 b. Client Software. ....................................................................................................................44 c. CAL Requirements. .............................................................................................................. 45 d. Mode of Deployment ........................................................................................................... 45 e. Use of the Redistributable Components. .............................................................................. 45 f. Administration Console or Utilities. ........................................................................................45 g. Software Metering, Logon Point, and Client Access Points................................................... 45 h. Upgrades of a Component of the BackOffice Server 4.5 or SBS 4.5 Suites.......................... 45 2. CAL Use Rights. .................................................................................................................... 45 R. TechNet Plus................ ...... ............................................... ............ ............ ............................... 45 1. Server Use Rights. ................................................................................................................ 45 a. Installation-Server Software. .............................................................................................. 45 . b. Client Software. ................................................................... ................................................. 46 2. Other Rights and Restrictions. .............................................................................................. 46 a. Online Services. .................................................................................................................. 46 b. Copies. ................................. .,............................ ........... ...... ................................... ...... ........ 46 c. Pre-Release Software...... ................... ............................. ....... .............. ............... ................. 46 d. Redistributable Components. ................................................................................................ 46 S.............................................................................................................................................~ Windows Server 2003, Standard Edition, ...................................................................................... 46 Windows Server 2003, Enterprise Edition ..................................................................................... 46 Windows Server 2003, Web Edition .............................................................................................. 46 1. Server Use Rights ................................................................................................................. 46 a. Installation, Server Software ................................................................................................ 46 b. Processor Rights.. ............................. ......... ....................... ............. ............. ......................... 46 c. Windows Server 2003, Enterprise Edition (or DataCenter Edition) General Terms and Conditions of Your Use of Windows Rights Management Services Components ("RMS Components")...................................................................................................................... ..... 47 d. Installation, Device Software ................................................................................................ 47 e. Volume License Product Key Validation............................................................................... 47 f. CALs..... .'............................................ ...... ................ ........... ................ ................................. 47 i. Windows Server 2003 CAL Requirements ........................................................................ 47 ii. Types of Windows CALs ................................................................................................... 47 iii. Windows GAL Licensing Modes. ....................................................................................... 48 iv. Terminal Server Client Access License for Windows Server 2003 ("TS CAL") Requirements 48 v. Types of TS GALs; TS GAL Licensing Modes ................................................................... 48 vi. Additional GAL Requirements. Administration .................................................................. 48 vii. RMS GAL Requirements. ..................................................................................................48 viii. Types of RMS GALs; RMS CAL Licensing Modes....:................................................. 48 g. Premium Windows Server Services. .................................................................................... 48 h. Windows Server 2003, Web Edition, Usage Rights.............................................................. 48 i. Description of Other Rights and Limitations....................................................................... 49 i. Component Data Storage..................................................................................................49 ii. Automatic Internet-Based Services ....'............................................,.................................. 49 j. Upgrades/Downgrades ...... .................................... ............... .................. .................... ......... 50 i. Software upgrades for a component of Microsoft BackOffice Server ("BackOffice Server"). 50 ii. CAL downgrades..................................................... ........... .................... ..................... ...... 50 k. Notice Regarding MPEG-4 Visual Decoders for Windows Media Player............................... 50 2. Windows Server 2003 External Connector ........................................................................... 50 a. Introduction........................................ ................................. ...... ..................................... ...... 50 b. Access to the Server Software ............................................................................................. 50 Microsoft Product Use Rights 3-?1 T a'Dle of Contents 8 .~--"~ ,"..,.. ----. c. Downgrades................ ................... ......... ................................... .................................... ......50 3. Windows Server 2003 Terminal Server External Connector ("TSEC"). .................................50 a. Introduction.. ................................ ....................... ....... ............. ....................................... ...... 50 b. Windows Sessions... .................... ................ ........................... .................. ..................... ......50 c. Downgrades................... ....... ........... ....... .................................................. ..................... ......50 4. Windows Server 2003 Rights Management Server External Connector ("RMSEC"). ............ 51 a. Introduction................. ................... ........ ............ .............. ....................................................51 b. RMS Components........................... ......... ........... ............. ...........................,.................. ...... 51 5. CAL Use Rights. .......................................................................................... .................... ...... 51 T. Windows 2000 Server and Windows 2000 Advanced Server> .................................................51 1. Server Use Rights. .............................................................................................. .............1....51 a. Installation-Server Software. ..............................................................................................51 b. Client Software. ....................................................................................................................51 c. Processor Limits. .................................................................................................................. 51 d. Windows 2000 Server CAL Requirements............................................................................ 51 e. Mode of Deployment. .....................................................,......................................................51 f. Terminal Services............ ........... ....... .......... ...... ................. ..... .... ........................ ..................51 g. "Authenticated User". ..... ........... ........ ............... ..... ................................................................ 51 h. "Windows 2000 Server Services".......................................................................................... 51 i. "Terminal Services".. ............... ...... .......... ....................... ....................... ...... ...........................51 j. Mode of Deployment..............................................................................................................51 k. Update Features. ..................... .............................................................................................52 I. Internet-Based Services Components. ..................................................................................52 m. Upgrades from BackOffice Server or SBS. .......................................................................... 52 2. Internet Connector... ..................... ........... .................... ........ ................... ......................... ...... 52 3. Terminal Services Internet Connector.................................................................................... 52 4. GAL Use Rights. ....................................................................................................................52 5. MultiLanguage Versions. .......................................................................................................52 6. Work at Home. ...................................................................................................................... 52 U. Windows NT 4.0 Server............................................................................................................ 53 1. Server Use Rights. ................................................................................................................ 53 a. Installation-Server Software. ..............................................................................................53 b. Processor Limitation. ................ .................... .................... ........... ..................... ..... ...............53 c. Client Access.. ................... .......... .....,............... .................................................. .................. 53 d. Note on Microsoft FrontPage Software. ................................................................................. 53 e. Microsoft Site Server Express. ............................................................................................. 53 f. SQL Server Feature. ..............................................................................,J.............................. 53 g. Windows NT Load Balancing Service (the "OS Component"). .............................................. 54 2. Windows NT CAL Use Rights. ............................................................................................... 54 V. Windows Small Business Server 2003 Standard Edition and Windows Small Business Server 2003 Premium Edition..... ....................... ........ ........ .......... .......... ......... ...................... ....................54 1. Server Use Rights ................................................................................................................. 54 a. Installation, Server Software ................................................................................................54 b. Processor Rights................... ........... ........ ...................... ............................ ..........................54 c. Installation, Device Software ................................................................................................ 54 d. CALs. ......... .............. ..... .............. ......... ..... ................... ........................... ..................... ........ 55 i. Windows Small Business Server CAL ("SBS CALs") Requirements. ................................... 55 ii. Types of SBS CALs. ........................................................................................................... 55 e. Premium Services. ............................................................................................................... 55 f. Redistributable Code. ............................................................................................................ 55 i. Sample Code. .....................................................................................................................55 ii. Redistributable Code. ......................................................................................................... 55 g. Distribution Requirements and Other License rights and Limitations. ...................................55 i. Redistribution Requirements. ..............................................................................................55 Microsoft Product Use Rights 3-22 Table of Contents 9 ii. No Further Redistribution.................................... ................................................................ 56 iii. Additional Redistribution Requirements. ............................................................................56 iv. SQL Server Redistributables. ............................................................................................ 56 h. Microsoft Windows Small Business Server 2003, Premium Edition ...................................... 56 i. SQL Server. ........................................................................................................................56 ii. BizTalk Server. ...................................................................................................................56 iii. Microsoft Office Frontpage 2003. ...................................................................................... 56 i. Windows Small Business Server 2003. Conflicting Terms. ...................................................56 j. Report-Writing Runtime Software Limitations........................................................................ 56 k. Data Storage. .......................................................................................................................56 I. Automatic Internet-Based Services. ........................... ............................................................ 57 m. Notice Regarding MPEG-4 ............. ..................................................................................... 58 2. Windows Small Business Server 2003 CAL Use Rights. .......................................................58 W. Windows Server 2003 for Small Business Server .................................................................... 58 1. Server Use Rights ................................................................................................................. 58 a. Installation, Server Software ........... ..................................................................................... 58 b. Processor Rights....... ....... .................................... ................................................................ 58 c. Installation, Device Software ........... ..................................................................................... 58 d. Volume License Product Key Validation............................................................................... 58 e. CALs ...... ....... ............ .................... .................................................. ....................... ....... ....... 58 i. Windows Server 2003 CAL for Small Business Server ("Windows CAL") Requirements... 58 Ii. Types of Windows CALs ...................................................................................................59 iii. Windows CAL Licensing Modes. ....................................................................................... 59 iv. Terminal Server CAL ("TS CAL") Requirements................................................................ 59 v. Types ofTS CALs; TS CAL Licensing Modes ................................................................... 59 vi. Additional CAL Requirements. Administration .................................................................. 59 f. Premium Services... .......................... ............................ .............. .............. ...... ......... ............ 59 g. Description of Other Rights and Limitations ......................................................................... 59 i. Component Data Storage.................................................................................................. 59 ii. Automatic Internet-Based Services ................................................................................... 59 h. UpgradeslDowngrades....................................................................... ................. ................ 60 i. Software upgrades for a component of Microsoft BackOffice Server ("BackOffice Server"). 60 ii. CAL downgrades.... ............... .............. ............ ............... ............. ....... ............... ................ 61 i. Notice Regarding MPEG-4 .................................................................................................... 61 3. CAL Use Rights. .................................................................................................................... 61 X. Services for Unix 3.0................................................................................................................. 61 1. Installation-Server Software. ............................................................................................... 61 2. Installation on Windows NT Workstation, Windows 2000 Professional, or Windows XP Professional. ............................................................................................................................. 61 3. Installation on Microsoft Windows Server Products. .............................................................. 61 4. Server for NFS Authentication. .............................................................................................. 61 5. Server for NIS............. ................... ................................... ............ ........................... ........ ...... 62 6. Password Synchronization.............................................. .................... ..... ....................... ......62 7. Component Products...................... ............................. ....... ............. ..... .......... .... ....... .... ........ 62 Microsoft Developer Tools... ................ ........ .................................. 63 I. This Section I applies to the following products:.......................................... 63 1. BizTalk Server 2002 Developer Edition ..................................................................................... 63 2. Commerce Server 2002 Developer Edition ............................................................................... 63 3. Microsoft Office XP Developer 2002 ("MOD")............................................................................ 63 4. Microsoft Developer Network Subscription ("MSDN")................................................................ 63 5. SQL Server 2000 Developer Edition ......................................................................................... 63 Microsoft Product Use Rights (i!.m""ri,...~<:'\ {~,.,.../jC'h} (1.,/" .,n"~\ ~D~~f Contents . 6. Visual FoxPro7.0 and 8.0............................. ........... ..... ........ ....... ................. ... ...... ..... ......... ...... 63 7. Visual SourceSafe 6.0.............................. .... ......... .... ..... ............... ......... ..... .... .... .................. ....63 8. Visual Studio. NET 2002 and 2003 (Enterprise Architect, Enterprise Developer, Professional).. 63 A. General License Grants. .............................. ......... .... .......... ....... ........ ......... ........ ............. .........63 1. Installation and Use. ................................. .......... ..... ............... ..... ....... ......... ...... ........ ...... ......63 2. Documentation. ...... ......... .................................. ...................... ........... ......... ...... ........ ...... ......63 3. Microsoft SeNer Software. .................. ..... .......... .... ............... ...... ............ ..... ... ............ ...... ....63 a. General. ..... ....... ..... .... ......................... .... ...... ..... .................... ......... .... ... .......... ...... .............. 63 b. Installation and Grant of License. ........................................................................:................63 i. SeNer Software...... ..... ....................... ...... ........ ..... ........ ........ ....... ......... ...... .... .... ................63 ii. Device Software. . .......... ........ ............ ...... ......... ........ ...... .......... ... .......... ..... ...... .................. 63 c. Additional Rights and Limitations for Specific SeNer Software. ............................................ 64 i. All Server Products...... ................... ..... .... ......... ..... .... .... ............... ... ..... ..... ........... .... ..... ......64 ii. Windows NT Server, Windows 2000 SeNer, and Windows .NET SeNer............................ 64 iii. Windows Server 2003. ... ..... ....... ...... ................ ....... .... ........ ................ .... ........ ............ ......64 iv. Application Center 2000. ................... .... .......... .... .... .... .... ......... ..... ..... ..... ...... .... .......... ...... 65 v. Systems Management SeNer version 2.0 ("SMS"). ............................................................ 65 4. Third Party Software Programs. .......................................................................................66 B. Redistributable Code License Grants... ..... ....... ........... ........ ............. .......... ..... ...... ......... ..... ...... 66 1. Sample Code.. ....... ............... ............. ........... ...... ..... ......... ............ .......... ...... ............. ...... ......66 2. Redistributable Code. ......... ................. ............... .......................... .... ........... .......... ........ ........66 3. Software Development Kits (or "Developer Editions") for SeNer Software............................. 66 4. Microsoft Merge Modules ("MSM"). ....................................................................................... 66 5. Microsoft Foundation Classes (MFC), Active Template Libraries (ATL), and C Runtimes ~~~...........................................................................................................................w C. Distribution Requirements and License Limitations...................................................................66 1. General Requirements. ............................ .............................................................................66 . 2. Additional Rights or Restrictions. ...........................................................................................67 a. "Jet" Files or MSDE. .............................................................................................................67 b. Microsoft Data Access Components. ...................................................................................67 c. SQL Server 2000 Windows CE Edition. ..............................................................................., 67 D. Other Rights and Limitations for Certain Software. ................................................................... 67 1. General. ...... ..... ...... ......................................... ......... ............. ...... ............... ............... ........ ....67 a. Benchmarking Performance or Benchmark Testing.............................................................. 67 2. Visual Studio .NET.2002................... ...... ................ ............... ...... ........... ............... .......... ...... 67 a. Web Stress Functionality/ACT Tool. ..................................................................................... 67 b. Crystal Reports for Microsoft Visual Studio.NET................................................................... 68 E. Microsoft Developer Network Subscription ("MSDN"). ............................................................. 68 1. Additional license rights explained. ........................................................................................ 68 a. Desktop Applications Products. ............................................................................................ 68 b. Desktop Operating Systems. ................................................................................................68 c. Server Software..... .................................. ................ .... ....... ..... ........... ......... .............. ...........68 d. Developer Tools. ............................................ ...... ................... .......... .......... .......... ...............68 e. Component End User License Agreements. ......................................................................... 68 F. Additional Rights and Restrictions for MOD licensed outside of MSDN. .................................... 68 General. .......... ................... ............. ........... ... .......................... ................. ...... ............... .........68 II. MapPoint 2002 Runtime Version ............................................................... 69 A. Install and Use.. ................................................................... .......................................... ...........69 B. Integration. ..... ....... .... ........................................ ....... ..................... ......... ....... .... ........ ...... .........69 C. Distribution Terms. ..... ............................ ................ ..................... ............................ .................69 D. Permitted Use of Maps and Other Content. .............................................................................. 69 III. TechNet Online......................................................................................... 69 IV. TechNet Plus.............................. ............ ............. ................ ............ ......... 69 Micro."nft Product U"~A Riahts 3-24 Table of Contents A.. Single User Use Rights. ........... ......... ....... ..... ..... ...... .... ............ ......... ...... ..... ....... .... ............ ..... 69 B. Other Rights and Restrictions. ................................................................................................. 69 1. Online Services. ................................................................................................................... 69 2.~_..................................................................................................................................ro 3. Pre-Release Software. .......................................................................................................... 70 4. Redistributable Components. ................................................................................................ 70 >> This arrow appears throughout the document before sections which are designed to guide you. Microsoft Product Use Rights 3 Tk~ of Contents '11__--'___.,.... ".".. ~~...~. . "'j.:,;,:U;Highlig'~t' ofChan'g~s'td"~r6~ua~q~'~':iBi'~ }} This update includes the following additions and deietions. . . All Microsoft Desktop Applications We have granted the right to access the Software via Remote access technologies for all Microsoft Desktop Applications. Please refer to the Application section, starting on page 20. . Exchange Server 2003 Office Project Server 2003 Office SharePoint Portal Server 2003 Windows Small Business Server 2003 Windows Server 2003 for Small Business Server Windows Rights Management We have added use rights and restrictions for these products. These use rights include the External Connector license options (with the exception of the Small Business editions, which require CALs) and the new User CAL Please refer to the Server section, starting on page29. . . Identity Inte9ration Server 2003 We have added use rights and restrictions for Identity Integration Server 2003. This product is licensed on a per processor basis. Please refer to the Server section, starting on page 29. . Real-Time Communications Server 2003 We have added use rights and restrictions for Real-Time Communications Server 2003. This product is licensed on a Server/CAL basis. Please refer to the Server section, starting on page 29. . Software Assurance Benefits We have added language in connection with benefits we are extending to customers with Software Assurance coverage and Software Assurance Membership. For further information on what these benefits are, please see the Product List. . Commerce Server 2000 Content Management Server 2001 We have removed use rights and restrictions for these products as they are no longer available through Microsoft Volume Licensing programs. Microsoft Product Use Rights 3-26 Highlights of Changes 13 .sLJtril11~ry]qfc~~od uct!d~~/~ig~t , > > The following summaries are intended as a quick reference guide to our different licensing models. For specific details on when a license for a particular product is needed, and how that product may be deployed and used see the Definitions and General Use Rights and Restrictions, Applications, Systems, Servers and Developer Tools sections, which follow the summaries. Careful and thorough review of those sections, and the license agreement under which you license products, is essential to your compliance with all applicabie provisions of your agreement with us. In the case of any inconsistency between the summary and a provision in on~ of those sections or in your license agreement, then the summary will not control. Product Use Rights for Applications ) > The following table is a summary of common product use rights for the Applications product pool. Each column addresses a different use right, and each row addresses a different product in this pool. In each cell, "yes" indicates that the use right applies to that particular product. This table is not a comprehensive summary of use rights and restrictions. For a detailed description of the different use rights addressed here. please refer to the section of these product use rights that is specific to each product. Ucensed on Licensed on Second Copy Work-at-home Remote Multi~anguage a Per Device a Per User can be Installed License Desktop License Basis? Basis? on a Secondary Available? Access of Available? Portable Device? Application Permitted? Access yes no yes no yes no Creative Writer yes no yes no yes no D<.. 01 Analyzer yes no yes no yes no Encarta yes no yes no yes no Exc !I yes no yes no yes no Fro,llPage yes no yes no yes no Magic; School Bus yes no yes no yes no MapPoint yes no yes no yes no Office yes no yes yes yes yes Outlook yes no yes no yes no PowerPoint yes no yes no yes no Press yes no ~ yes no 'yes no Press Courseware no yes no Projeqt.~~,~fJ;!,~;., . no ;;~ :~~:'';''~' yes Proofing Tools 'J~.jijj!'>.,""' Visio Microsoft Product Use Rights summ~,y g,7product Use Rights 14 '''__-..! __, ,~_ "_L'" . ..........."" , Product Use Rights for Systems > > The following tabie is a summary of common product use rights for the Systems product pool. Each column addresses a different use right, and each row addresses a different product in this pool. In each cell, "yes" indicates that the use right applies to that particular product. This table is not a comprehensive summary of use rights and restrictions. For a detailed description of the different use rights addressed here, please refer to the section of these product use rights that is specific to each product. Windows XP Professional 1- Note: the Windows Desktop operaNng system is available in Volume Licensing not as a full version license, but rather as an upgrade license only. A qualifying operating system (defined in the Product List) must be licensed for the personal computer or workstation before you can upgrade and/or maintain that license in Volume Licensing. Microsoft Product Use Richts 3-28 Summary of Producf Use Rights 15 Product Use Rights for Servers >> The following table is a summary of common product use rights for the Server product pool. Each column addresses a different use right, and each row addresses a different product in this pool. In each cell, "yes" indicates that the use right applies to that particular product. This table is not a comprehensive summary of use rights and restrictions. For a detailed description of the different use rights addressed here, please refer to the section of these product use rights that is specific to each product. CALs? Application Center yes no no no no yes no (8) BizTalk Server yes no no no no yes yes (1) Commerce Server yes no no no nla yes no (8) Content Management yes no no no no yes no (8) Server Class Server no no yes (3) no no yes yes Exchange Server no yes yes no yes yes yes Host Integration Server yes no no no no yes no (8) Identity Integration yes no no no no yes No (8) Server ISA Server yes no no no no yes no (8) Office Project Server no yes no yes 'yes';. . Office SharePoint Portal no '" yes no yes i ;ye~,; .",.. Server -,," Operations Management yes no no no.. Server .. Mobile Information no no no no Server Real-Time no no yes Communications Server .. ,., Services for Netware no (4) Servjces for UNIX"" ' ~:':' No (4) ,:.Ji..'" Terminal Server no yes yes (6) no yes yes yes (6) Windows Rights no yes yes (6) no yes yes yes (6) Management Server Windows Server no yes yes yes (2) yes yes yes Windows Small no yes yes no no yes nla (9) Business Server Microsoft Product Use Rights 3-ZQ Summary oTProduct Use Rights 16 . 1 - Each license for the Standard Edition of this product entitles you to install one copy of the product for use on a single processor of a server. The Enterprise Edition of this product entitles you to install any number of copies on a Server provided you have acquired the required number of processor licenses. 2 - Windows GALs may not be deployed in the Per Server mode, if licensing Terminal Server. In that case, Windows GALs must be deployed in the "per Dev;ce or per User" mode. 3 - See Class Server section for access license requirement unique to Class Server. 4 - You may install any number of copies of Server Software on Servers residing on your premises that are running the appropriate Microsoft Windows operating system as described in the user documentation published by Microsoft. You may install the client software on any device. 5 - SQL Server can be licensed either on a Per Processor basis or a Server/GAL basis with either Device or User GALs. 6 - The Terminal Server and Windows Rights Management Server components are licensed under a Windows Server license. The GALs for each must be acquired separately. 7 - Except in the case of a User for whom you have acquired a User GAL. a GAL is needed for limited access by secondary devices when product is licensed on a Server/GAL basis. 8 -You may install any number of copies of the software on a Server provided you have acquired the required number of software processor licenses. 9 - Only one copy of Windows Small Business Server may be installed on a physical machine. regardless of the number of licenses acquired. Product Use Rights for Developer Tools >> The following table is a summary of product use rights for Developer Tools. Each column addresses a different use right. and each row addresses a different product in this pool. In each cell, "yes" indicates that the use right appiies to that particular product. This table is not a comprehensive summary of use rights and restrictions. For a detailed description of the different use rights addressed here, please refer to the section of these product use rights that is specific to each Developer Tool product. Licensed on a Per Designated User Basis? May Install Anv Number .Q! ,Copies, on Anv Number gf Devices? Can Be Used Only for Design, Test Demonstrati on,or Development Purposes? Can Be Used for General Business Purposes, Provided It Is for Design, Development, Demonstration or Test of the Software? Can 8e Used for' General Business PUrposes? Application and Developer Tool Products Office Developer MSDN Microsoft Product Use Riahts 3-30 Summarv of Product Use Riahts 17 Server Products BizTalk Server Developer 1 - Applies to Project, Vislo and Office Developer Components of MSDN only. 2 - Applies to Office Developer Component of MSDN only. Microsoft Product Use Rights sum~';;;~ !f Product Use Rights 18 'D~fi nHiOhS~(and: G~'riei-af'Use~ '. _. .' " ';.' 1':'1'; ',: -'; "',c", ',oj. ' ~ ' , Rtghts\.and Restrictions' ., ,. ,'- > > This document specifies use rights and restric60ns for Microsoft Software that . You order under your license agreement. . We license to you in connection with Software Assurance; and . We license to you in connection with Software Assurance Membership. . For additional information on what Software is licensed to you in connection with Software Assurance and Software Assurance Membership, or what Software you can order under your license agreement, please see the Microsoft Product List, or contact your Microsoft account manager or reseller, I. Definitions These are common defined terms: "License Confirmation" means evidence of your license provided by Microsoft. "Microsoft" (also -referred to 85 "we" or RUS" in this document) means the Microsoft company which is issuing or has issued licenses under your volume license agreement or its affiliates. uProduct/' except as othelWise provided, means the computer software and associated media, schema, schema-generating tools, printed materials, and 'online" or electronic documenta,tion, if any. "Software" means the software portion of the products you may license under your volume license agreement. "Vau" means the entity which has entered into the volume license agreement with us under which a copy of the Software is being licensed or, if applicabie, its affiliates or authorized users. II. General Use Rights and Restrictions These are generai use rights and restrictions for all products: Microsoft grants you specific use rights for each product you license provided you comply with all terms and conditions applicable to that product. The Software is protected by copyright laws and international copyright treaties, as well as other intellectual property laws and treaties. The Software is licensed, not sold. These product use rights also govern any product support services relating to the Software except as may be included in another agreement between you and Microsoft. A. Prerelease Code. Portions of the Software may be identified as prerelease code ("Prerelease Code"), Such Prerelease Code is not at the level of performance and compatibility of the final, generally available product offering. The Prerelease Code may not operate correctly and may be substantially modified prior to first commercial shipment. Microsoft is . not obligated to make the Prerelease Code or any later version commercially available. Your license to use any Prerelease Code expires when the product is commercially available from Microsoft. B. Updates and Supplements. These rights and restrictions apply to updates or supplements to, and add-on components, or Internet- based services components of the original Product provided by Microsoft (for example, subsequent installments of MSDN or service pack updates to existing products), unless we provide other terms along with the update, supplement, add-on component. or Internet- based services component. If you do not have a validly licensed copy of the original Product to which the update, supplement, add-on component, or Internet-based services component relates, you are not authorized to install, copy, or otherwise use the update, supplement, add-on component, or Internet-based services component, and you have no rights under the supplemental use terms, if any. Microsoft reserves the right to discontinue Internet-based services provided to you or made available to you through the use of the Software. C. Remote Assistance, If the Software contains the Remote Assistance technology, you may use it to access any other Microsoft software product for the sole purpose of rendering technical support and assistance to a licensed user of such software product with the user's permission. D. Speech/Handwriting Recognition. Microsoft Product Use Riohts 3-32 f)Afinition.<; and GenArall I.<;A Rinht.<; 10 If the Software includes speech andlor handwriting recognition component(s), you should understand that speech and handwriting recognition are inherently statistical processes; that recognition errors are inherent in the processes; that it is your responsibility to provide for the handling of such errors and to monitor the recognition processes and correct any errors. Neither Microsoft nor its suppliers shall be liable for any damages arising out of errors in the speech and handwriting recognition processes. E. Consent to Use of Data. You agree that Microsoft and its affiliates may collect and use technical information gathered as part of the product support services provided to you, if any, related to the Software. Microsoft may use this information solely to improve our products or to provide customized services or technologies to you and will not disclose this information in a form that personally identifies you. F. Links To Third Party Sites. You may link to third party sites through the use of the Software. The third party sites are not under the control of Microsoft, and Microsoft is not responsible for the contents at" any third party sites, any links contained in third party sites, or any changes or updates to third party sites. Microsoft is not responsible for webcasting or any other form of transmission received from any third party sites. Microsoft is providing these links to third party sites to you only as a convenience, and the inclusion of any link does not impiy an endorsement by Microsoft of the third party site. G. No "Multiplexing" or "Pooling," Use of software or hardware that reduces the number of electronic devices directly monitored or managed by the Software or directly accessing or utilizing the Software (sometimes called 'multiplexing" or 'pooling" software or hardware) does not reduce the number of licenses required; the required number of licenses would equal the number of distinct inputs to the multiplexing or pooling software or hardware "front end: H. No Commercial Hosting. You may not provide commercial hosting services with the Products. I. Redistributabie Components-No Warranty. Product warranties do not apply to components of products which you are permitted to redistribute under applicable product use rights. J. Software Assurance Benefits Some Software Assurance benefits (e.g., the use of certain supplemental software) require Software Assurance coverage. Other Software Assurance benefits require Software Assurance Membership. Please see the Product List to find out what these benefits and the respective eligibility criteria are. K. Volume License Product Keys. To install certain products you will need to use a specific Volume License Product Key (VLK). You will be assigned a unique VLK for each product family (starting with the XP product line). Because you will be held responsible for unauthorized use of the VLKs assigned under your license agreement, you agree to use your best efforts to keep a secure record of these product keys including not disclosing such keys to any unauthorized third party. For further information on VLKs, please go to htto:l/www.microsoft.com/licensino and click on the "Volume License Product Key" link. L. Termination. Microsoft may terminate your rights under a given license if you do not abide by these terms and conditions, in which case you must destroy all copies of the Product and all of its component parts. M. Reservation of Rights. Microsoft reserves all rights not expressly granted to you. ",... ."., ,. Defin~o,J ~nd General Use Rights 20 Microsoft Product Use Rights I, ,_Micf;osoft ~PPlicatiori_s:"_-:-'''1 > > This section covers products listed In the Product Ust as belonging to the applications pool, with the exception of the developer tools products. See the "Developer Tool." section for use rights for those products. I. General License Grant This grant applies to all applications products except as othelWise noted below, A. General. 1. Installation and use. For each license acquired, you may: (a) install and use a copy of the Software, any component product of the Software, and any prior version of the Software or any component, on one personal computer or other device; and (b) install an additional copy of the Software on a second, portable device for the exclusive use of the primary user of the first copy of the Software. 2. License Grant for Remote Access Technologies~ You may use remote access technologies, such as the Remote Desktop features in Microsoft Windows or NetMeeting, to access and use your licensed copy of the Software, provided that only the primary user of the device hosting the remote desktop session accesses and uses the Software with a remote access device. These remote access rights do not permit you to use the Software on both the device hosting the remote desktop session and the access device at the same time. 3, License Grant far Remote Assistance. You may permit any device to access and use your licensed copies of the Software far the sole purpose of providing you with technical support and maintenance services. 4. Media Elements. The Software may include, and identify far your use, certain photographs, clip art, shapes, animations, sounds, music and videa clips (together "Media Eiements"). You may copy and modify the Media Elements, and license, display and distribute them, along with your modifications as part of your software products and services, including your web sites, but you are not licensed to do any of the fallowing: You may not sell, license or distribute copies of the Media Elements by themselves or as part of any collection, product or service if the primary value of the product or service is in the Media Elements. You may not grant customers af your product or service any rights to license or distribute the Media Elements. You may not license or distribute any of the Media Elements that include representations of identifiable individuals, governments, logos. initials, emblems, trademarks, or entities for any commercial purposes or to express or imply any endorsement or association with any product, service, entity, or activity. You may not create obscene or scandalous works, as defined by U.S. federal law at the. time the work is created, using the Media Elements. In addition, (a) you must indemnify and defend Microsoft from and against any claims or lawsuits, including attorneys' fees, that arise from or result from the licensing, use or distribution of Media Elements as modified by you, and (b) include a valid copyright notice on your products and services that inciude the Media Elements. 5. License Grant for Documentation. Any documentation that accompanies the Software is licensed for internal, non-commercial reference purposes only. 6. License Grant far Templates. The Software may include document templates. You may copy and modify the document templates avaiiable as part of the Software and distribute such templates along with your modifications for use by other licensees of the Software. You also may copy, modify and distribute the templates available through related Intemet- based services along with your modifications for use by other licensees of the Software, but oniy for personal or commercial correspondence involving person-to-person communication. You are not licensed to do any of the following: o You may not sell, resell, license, rent, lease, lend, or otherwise transfer for value, the templates. o You may not distribute the templates avaiiable via Internet-based services as part of any product or service. o You may not copy or post any templates available through Internet-based services on any network computer or broadcast it in any media. You must indemnify and defend Microsoft against any claims or lawsuits. including attorneys' fees, that arise from or result from the licensing or distribution of the tempiates as modified by you. B. Description of other rights and limitations Microsoft Product Use Rights 3-34 Microsoft Applications 21 1. Volume License Product Key Validation. There may be technological measures in the Software that are designed to prevent unlicensed use of the Software. We will use those measures to help ensure you have a valjd Volume License Product Key for the Software. Microsoft will not collect any personally identifiable information from your device during this process. If you are not using a valid Volume License Product Key for the Software, you are not allowed to install the Software or future Software updates. 2. Internet-Based Services. You may not use any Microsoft Intemet-based services associated with the Software in any manner that could damage, disable, overburden, or impair such services Of interfere with any other party's use and enjoyment of them. You may not attempt to gain unauthorized access to any service, account, computer systems or networks associated with the Internet-based services. 3. Report.Writing Runtime Software Limitations. The Software may contain report-writing runtime software ("Runtime Software"). Other than use with the Software, you may not use the Runtime Software with any other software application nor use the Runtime Software as part of any process or system that is used to automatically deliver, share or distribute documents or other work created using the Runtime Software. 4. Share Point Team Services, The Software may contain a copy of the SharePoint Team Services. If so, you may install one copy of such software on one Device and allow any number of individuals within your business or enterprise to access and use the SharePaint Team Services from ather Devices provided that you acquire and dedicate a license to the Software for the Device upon which the SharePoint Team Services are installed. 5. Office Resource Kit and PowerPoint Viewer. If the Software contains one or more of these features, the following additional tenms apply: Installation and Use. You may install and use any number of copies of the Software, Reproduction and Distribution. You may reproduce and distribute any number of copies of the Software provided that each copy is a true and complete copy, inciuding ail copyright and trademark notices, and is accompanied by an end user license agreement no less restrictive than the terms and conditions governing your use of the Software. 6. Office Web Component. It is not necessary for you to separately license copies of the Software that you install and use for the sole purpose of viewing and printing copies of static documents, text and images created with the Software; however, for interactive use or in order to otherwise use the Software as provided in this General License Grant, you must acquire a license for the Software, II. Exceptions The following use rights and restrictions supplement or replace the General Ucense Grant for the products identified below. A. Encarta Deluxe 2003 and Encarta Reference Library 2003 1. Electronic Literature. With respect to electronic literature documents (collectively "Content") included with the Product you may only utilize the Content for personal noncommercial uses and you may not sell, license or otherwise distribute the Content for value. 2, Digital Rights Management. Content providers are using the digital rights management technology contained in the Softw'are ("DRM") to protect the integrity of their content ("Secure Content") so that their intellectual property, including copyright, in such content is not misappropriated. Portions of the Software and third party appiications such as media players use DRM to play Secure Content ("DRM Software"), If the DRM Software's security has been compromised, owners of Secure Content ("Secure Content Owners") may request that Microsoft revoke the DRM Software's right to copy, display andlor play Secure Content. Revocation does not alter the DRM Software's ability to play unprotected content. A list of revoked DRM Software is sent to your computer whenever you download a license for Secure Content from the Internet. You therefore agree that Microsoft may, in conjunction with such license. also download revocation lists onto your computer on behalf of Secure Content Owners. Microsoft will not retrieve any personally identifiable information, or any other infonmation, from your computer by downloading such revocation lists. Secure Content Owners may also require you to upgrade some of the DRM components in the Software ("DRM Upgrades") before accessing their content. When you attempt to play such content, Microsoft DRM Software will notify you that a DRM Upgrade is required and then ask for your consent before the DRM Upgrade is downloaded. Third party DRM Software may do the same, If you decline the upgrade, Microsoft Product Use Rights Micr&~tf~p{ications 22 you will not be able to access content that requires the DRM Upgrade; however, you will still be able to access unprotected content and Secure Content that does not require the upgrade. . 3. Mandatory Operating Systems Software Upgrades. The Product may contain mandatory operating systems software upgrades required for proper operation of the Product. Any such systems software upgrades are Ucensed to you pursuant to the same terms as provided In your license to the operating system. B. Encarta Online Deluxe . For each license you acquire, you may access and use the secure web site known as Microsoft Encarta Online Deluxe (the "Product") in accordance with the Product's Terms of Use, as set forth at htto://encarta. msn .com/shared/corpcitizen/tou. shtm. You will be entitled to any Components and Updates made available under the Encarta Online Deluxe Subscription Program during the subscription term. You agree to restrict access to the Product to computer workstations physically located within your facility. You may not allow remote or dial-in access to the Product. Microsoft retains the right to audit y'ou monthly for unauthorized uses of or access to the Product. In the event of any unauthorized use by an Authorized User, you will take all reasonable steps to cause such Authorized User to cease such activity and to prev~nt any recurrence thereof. Microsoft reserves the right to immediately terminate the agreement under which the license is obtained or access to the Web Site by you 0; by Authorized User(s) for violation of any applicable terms and conditions. C. FrontPage 1. Restrictions on use of FrontPage Web Components. The Software may include FrontPage web components, including but not limited to the MSNBC news headline component, the MSN MoneyCentral Stock Quote component, and the MSN Search component (the 'Web Components"). If so, you may not edit or modify the Web Components in any manner whatsoever. You may not display any of the logos that appear in the Web Components in any manner that implies sponsorship, endorsement, or license of your web site by the owners of such logos. If the Web Components contain any active links to other sites, you agree to maintain such active links and not redirect or modify them. You may not market, distribute, sublicense, lease or rent the Web Components on a stand-alone basis. You may not use the Web Components in connection with any site that disparages Microsoft, MSN, MSNBC, Expedia or their products or services, infringes any intellectual property or other rights of these parties, violates any applicable law, or promotes racism, hatred, or pomography. You shall not convert the news headlines in the MSNBC component into an audio format for redistribution to audio users. You agree to immediately remove the Web Components from your web site if you do not abide by any of these restrictions after notice. THE RESTRICTIONS CONTAINED IN THIS SECTION APPLY ONLY TO THE WEB COMPONENTS AND NOT TO THE SOFTWARE GENERALLY. D. MapPoint, Streets & Trips, and AutoRoute In addition to the General License Grant above, the following rights and restrictions apply. For purposes of this section, the Software includes any content (such as maps, driving directions, points of interest, etc.) available in the Software ("Content"). 1. Systems Administrators. You may allow system administrators within your business or enterprise to access and use the Software for the soie purpose of assisting you with installing, configuring, and maintaining licensed copies of the Software. You must obtain separate licenses to the Software for systems administrators for any other use. 2. Permitted Use of Maps and Other Content For each license acquired, you may: (i) print up to one thousand copies of any given map or mapping Content (except points of interest) generated by use of the Software, provided that such maps are used (a) solely for your own immediate or near immediate use and (b) you do not sell or sublicense such reproduced Content; (ii) post online up to one thousand maps or sets of mapping Content (except points of interest) generated by use of the Software, provided that you do not sell or sublicense such Content; and (Iii) print or save up to two-hundred fifty (250) specific points of interest at a time to your cell phone, personal digital assistant ("PDA") or PC application for your intemal use only. Your use of such reproduced Content is subject to these terms and conditions and the terms and conditions of your license agreement. You agree to retain, and not delete or alter, any and all legal notices contained within the maps (e.g., copyright notices). 3. Restrictions. You may not use the Software, including any Content, except as expressiy permitted in these product use rights. Use of the Software for any Fleet Application is limited to fieets of 50 vehicles or less; and Real-time vehicie Microsoft Product Use Riahts 3-36 Microsoft ADDlications 23 guidance applications are not allowed, irrespective of fieet size. For Fleet App[ications, you must obtain a iicense for each vehicle, Le., if you have five (5) vehicles, you must obtain five (5) licenses. "Fleet Applications" means software, products or systems capable, in Real-time or Near-real time, of anyone or more of locating, monitoring, tracking, calculating andlor presenting routes andlor driving directions, including optimized routes and/or driving directions from multiple origins to multiple destinations and/or optimization of routes across multip[e vehicles, andlor dispatching, two or more vehicles the positions of which are in any way determined using GPS Technology or any other Positioning Technology. "Positioning Techno[ogy" shall mean GPS Technology or any other technology, devices andlor sensors that allow an application to determine in Real-time or Near-rea[ time the position andlor velocity of a person, vehicle, device or other object. "Real-time" solutions are those applications in which there is no measurable delay between the time at which a GPS location is acquired and the time this location is made available to the application. "Near real-time" takes into account network latoocy, transmission time and any other systems delays. You also may not use this information with Software with or in communication with any mobile or wireless- connected electronic or computer devices (except to the extent expressly permitted herein), including, without [imitation, cellular phones. palmtop and handheld computers, pagers, and personal digital assistants or PDAs. E. Multilingual User Interface (MUI) (formerly, Multi-Language) Pack Use of Multi[ingual User Interface Packs (the "Multi- Language Components") is subject to the tenms and conditions of the product use rights (the "Product EULA") for the applications product you have licensed (the "Product") and these terms and conditions. To the extent that these terms conflict with terms in the Product EULA, these terms control solely with respect to the Multi- Language Components. The Multi-Language Components add either Eng[ish or multi-[anguage functionaiity to your copy of the Product. The Multi- Language Components are a part of the Product and are intended for use by you solely in conjunction with the Product. F. Press Step by Step Courseware For each license you acquire, you must designate one individual in your organization who will have a personal, nonexclusive license to make and use copies of the Software. For purposes of these rights and restrictions, the Software will include the product in printed form. G. Windows Media Producer 1.0 1. Use ofTemplates. For purposes of this section, the tenm "Components" means Microsoft Windows Media Producer Templates. In addition to the Genera[ License Grant above, Microsoft grants you a license to use the Components, or any portion thereof. subject to the General License Grant and these tenms and conditions. To the extent that these tenms confiict with tenms of the General License Grant, these tenms control solely with respect to the Components. 2. Derivative Works; Redistribution Rights. Microsoft grants you the non-exclusive, royalty-free rights to use, modify and create derivative works of the Components (but hot Windows Media Producer 1.0) for. the purpose of designing, developing and marketing a product or service by you ("Application"). You may reproduce, sublicense and distribute the Components (and any modifications thereto made by you) provided that you agree: (a) not to use Microsoft's name. logo. or trademark to market any software product or services developed by you; (b) to indemnify, hold harmless, and defend Microsoft from and against any claims or lawsuits, including attorneys' fees and costs, that arise or result from the use or distribution of the Components or Applications; and (c) to penmit further redistribution of the Components by your end-user customers only under the same restrictions imposed on you. H. Visio 2002 (Standard and Professional Editions and Visio Enterprise Network Tools) 1. Systems Administrators. You may allow system administrators within your business or enterprise to access and use the Software for the sole purpose of assisting you with installing, configuring, and maintaining licensed copies of the Software. You must obtain separate licenses to the Software for systems administrators for any other use. 2. Additional Microsoft Visio Network Equipment Shapes. Microsoft Visio Enterprise Network Tools may enable you to obtain certain additional Microsoft Visio shapes from Microsoft Product Use Rights MiC~;'~ lpPlications 24 Microsoft, such as from a Microsoft web site. Microsoft Visio Network Equipment shapes that you obtain by use of Microsoft Visio Enterprise Network Tool will be considered part of the Software and governed by your license agreement uniess they are accompanied by a separate license agreement in which case such separate license agreement will govern your use of the Microsoft Visio Network Equipment shapes. 3. Visio Enterprise Network Tools. For every license of Microsoft Visio Enterprise Network Tools you acquire, you must have an equivalent number of licenses for Microsoft Visio 2002 Professional Edition. I. Virtual PC Installation and use. For each license acquired, you may install, use, access, display and run one copy of the Software on a single computer, such as a workstation, terminal or other device ("Workstation Computer"). The Software may not be used by more than two (2) processors at any one time on any single Workstation Computer. )) For other Microsoft and non-Microsoft products, you shouid consult the license agreement accompanying the applicable software or contact the applicabie licensor to ensure that you have complied with the terms and conditions of any additional end-user license agreement before using the product with the Software. J. Work at Home ("WAH") )) Wail< at Home copies are licensed separately from the corresponding copies run on your "At Woil< Computers". Your use of the Software is subject to these terms and the applicable use rights and restrictions above. For each license acquired you must designate a WAH user. That user must be the primary user of a separate device on which you run a separately licensed copy of the Software. If you upgrade the licensed Software on that separate device, you may upgrade the Software under the Work at Home license. A Work at Home license, and the designated user's right to use the Software under that license, terminates when the user leaves your organization. You must take reasonable steps to ensure that the Software is deleted. . K. Works You may use, copy, modify and distribute the Media Eiements (as described in the General License Grant section above and subject to the same terms), provided, however, that all such use is solely for personal, noncommercial purposes. You may not sell, license or otherwise distribute the Media Elements for value. The Media Elements have not been cleared or approved for use as trademarks or logos in conjunction with any companies' products or services. Any use as a trademark or logo would constitute a commercial use and is prohibited. Microsoft Product Use Riahts 3-38 Microsoft AODlicBtions " 10 -..,..", . -- ',;,'".... ".','. ... ;;~T:':.:;'MicrO$6ft Sy'steros' '. . . '. ,"" C. , ""'1 > > This section covers products listed in the Product List as belonging to the systems pool. See the "Microsoft Applications" section of this document for use rights for Microsoft Press products. I. General license Grant This grant applies to all systems products except as c..1therwise noted below. A. Installation and Use. For each license acquired, you may install, use, access, display and run one copy of the Software on the single computer, such as a workstation, terminal or other device ("Workstation Computer") on which it is first installed. The Software may not be used by more than two processors at anyone time on any single Workstation Computer. B. Volume License Product Key Validation TI ore are technological measures in the Software that are designed to prevent unlicensed use of the Software. We will use those measures to help ensure you have a val t Volume License Product Key for the Software. If you are not using a valid Volume License Product Key for the Software, you are not allowed to install the Software or future Software updates. Microsoft will not collect any perse ,ally identifiable information from your Workstation Com!, Jter during this process. C. Device Connections. You may permit a maximum of ten (10) computers or other electronic devices (each a "Device") to connect to the Workstation Computer to utilize one or more of the following services of the Software: File and Print services, Internet Information Services, and remote access (including connection sharing and telephony services). The ten connection maximum includes any indirect connections made through "multiplexing" or other software or hardware which pools or aggregates connections. This ten connection maximum does not apply to other uses of the Software. D. Multilanguage Versions. Use of MultiLanguage Versions (e.g. Windows XP Multilingual User Interface Pack) ("OS Components") is subject to the terms and conditions of the agreement ("EULA") under which you have licensed Windows 2000 Professional, Windows XP Professional or Windows XP 64-Blt Edition (each individually, "OS Product") and these terms and conditions. If you do not have a valid EULA for the OS Product, you are not authorized to instail, copy or otherwise use the OS Components. Capitalized terms used and not otherwise defined here have the meanings assigned to them in the applicable OS Product EULA. To the extent that these terms conflict with terms in the applicable OS Product EULA, these terms control solely with respect to the OS Components. General. The OS Components are provided to you by Microsoft to update, suppiement, or replace existing functionality of the OS Product. II. Exceptions The following use rights and restrictions supplement or replace the General License Grant for the products identified below. A. Windows XP Professional 1. Remote Desktop/Remote Assistance/NetMeeting. The Software contains Remote Desktop, Remote Assistance, and NetMeeting technologies that enable the Software or applications installed on the Workstation Computer (sometimes referred to as a host device) to be accessed remotely from other Devices. You may use the Software's Remote Desktop feature (or other software which provides similar functionality for a similar purpose) to permh any Device to use, aCGess, display or run the Software without acquiring a license for the Software on that Device, provided only one user uses, accesses, displays, or runs the Software at anyone time. When you are using Remote Assistance or NetMeeting (or other software which provides similar functionality for a similar purpose) you may share your session with other users without acquiring additional licenses for the Software. For Microsoft and non-Microsoft applications, you should consult the license agreement accompanying the applicable product or contact the applicable licensor to determine whether use of the product with Remote Desk1op, Remote Assistance, or NetMeeting is permitted without an additional license. As used above, a session means the experience delivered by the Software similar to when a user is using the input, output and display peripherals attached to the Workstation Computer Microsoft Product Use Rights Microgoft ~~tems 26 2. Description of other rights and limitations. . a. Digital Rights Management Content providers are using the digital rights management technoiogy contained in the Software ("DRM") to protect the integrity of their content ("Secure Content") so that their intellectual property, including copyright, in such content is not misappropriated. Portions of the Software and third party applications such as media piayers use DRM to play Secure Content ("DRM Software"). If the DRM Software's security has been compromised, owners of Secure Content. (~Secure Content Owners") may request that Microsoft revoke the DRM Software's right to copy, display and/or play Secure Content. Revocation does not alter the DRM Software's bility to play unprotected content. A list of revoked DRM .:ioftware is sent to your cOr'flputer whenever you download a license for Secure Content from the Intemet. You therefore agree that Microsoft may, in conjunction with such license, also download revocation lists onto your computer on behalf of Secure Content Owners. Microsoft will not retrieve any personally identifiable information, or any other information, from your computer by downloading such revocation lists. Secure Content Owners may also require you to upgrade some of the DRM components in the Software ("DRM Upgrades") before accessing their content. When you attempt to piay such content, Microsoft DRM Software will notify you that a DRM Upgrade is required and then ask for your consent before the DRM Upgrade is downloaded. Third pe'ly DRM Software may do the same. If you decline the u~ !rade, you will not be able to access content that requires the DRM Upgrade; however, you will still be able to ccess unprotected content and Secure Content that dOl : not require the upgrade. b. Windows Media Format Software Development Kit ("WI';'FSDK"). The r.lht to use the WMFSDK components contained in the Software to develop a software application that uses Windows Media technology is available separately. If you wish to use the WMFSDK to develop such an appiication, visit httD:llmsdn. microsoft. comlworkshoalimedialwindowsmedi alsdk/wmsdk.asa accept a separate license for the WMFSDK, download the appropriate WMFSDK, and install It on your system. c. Internet Gaming/Update Features. If you choose to utilize the Internet gaming or update features within the Software, it is necessary to use certain c.Jmputer system, hardware, and software information to implement the features. By using these features, you explicitly authorize Microsoft or its designated agent to access and utilize the necessary information for Internet gaming and/or updating purposes. Microsoft may use this information solely to improve our software or to provide customized services or technologies to you. Microsoft may disclose this information to others, but not in a form that personally identifies you. d. Internet-based Services Components. The Software contains components that enabie and facilitate the use of certain Internet-based services. You acknowledge and agree that Microsoft may automatically check the version of the Software and/or its components that you are utilizing and may provide upgrades or fixes to the Software that will be automatically downloaded to your Workstation Computer 3. Additional Software/Services. These rights and restrictions apply to updates, supplements, add-on components, or Internet-based services components, of the Software that Microsoft may provide to you or make avaiiable to you after the date you obtain your initial copy of the Software, unless we provide other terms along with the update, supplement, add-on component. or Internet-based services component. Microsoft reserves the right to discontinue any Internet- based services provided to you or made available to you through the use of the Software. B. Windows XP Embedded The following terms replace the General License Grant. All capitalized terms not expressly defined in these product use rights have the meanings ascribed to them in your license agreement. a. Terminal services protocols. If an Embedded System includes terminal services protocols (such as Remote Desktop Protocol or Independent Computer Architecture) to enable the Embedded System to connect to and access applications running on a server, you must ensure that no Office Automation and Personal Computing Functions run locally on the Embedded System, except for network/Internet browsing functionality. b. Maximum number of devices connected to Embedded System. Provided that the Embedded System continues to qualify as an Embedded System under the terms set forth in your appiicable license agreement, and without limiting the number of computers or other electronic devices that might connect to the Embedded System to access or utilize Licensee Software or other XPe services on the Embedded System, a Microsoft Product Use R/ehts 3-40 Microsoft Systems 27 maximum of ten (10) computers or other electronic devices may connect to the Embedded System to access and use XPe file and print services, intemet infonmation services, or remote access (including connection sharing). The ten-connection maximum includes any indirect connections made through "multiplexing", or other software or hardware which pools or aggregates connections. c. Product keys. The "Product Key" means a series of characters which serves to identify XPe and which you obtain from us. Prior to generating an Image, the XPe software will prompt you to specify the Product Key applicable to that Image. You shall ensure that the Product Key is piaced in the registry of the Image in accordance with the documentation that we provide and is copied, unaltered and intact, into the Image of the applicable Embedded System. d. User interfaces. You may either (a) elect to use the XPe end user interface ("Licensed Product UJ") in its entirety with no modifications except those that are expressly penmitted in the Toolkit documentation, or (b) elect to create your own user interlace without including any portion of the Licensed Product UI as set forth in the Toolkit documentation. e. "Prerelease" files. You may not distribute in any manner, or include in the Image, any file contained in the "Prerelease" folder located in the file directory under IVALUEADDlMSFT. You should refer to the Toolkit documentation for instructions on limited use of the files. f. Deployment via SDI2HD. You may distribute the System Deployment Image to Hard Drive utility tool ("SDI2HD") included in the Toolkit together with an Image (i.e., Recovery Image, Update Image or the initial Image) to enable deployme"t of the Image. You shall advise your employees that the SDI2HD may be used only to deploy Images to the Embedded Systems. g. Microsoft Windows Server products. If you use the Embedded System to access or utilize the services or functionality of Microsoft Windows Server products (such as Microsoft Windows NT Server 4.0 (all editions) or Microsoft Windows 2000 Server (all editions)), or use the Embedded System to penmit workstation or computing devices to access or utilize the services or functionality of Microsoft Windows Server products, you may be required to obtain a Client Access License for the Embedded System and/or each such workstation or computing device. Please refer to the end user license agreement for your Microsoft Windows Server product for additional information. h. Security updates for users of secure content. Content providers are using the digital rights management technology ("Microsoft DRM") contained in XPe to protect the integrity of their content ("Secure Content") so that their intellectual property, including copyright, in such content is not misappropriated. Owners of such Secure Content ("Secure Content Owners") may, from time to time, request us or our affiliates to provide security related updates to the Microsoft DRM components of XPe ("Security Updates") that may affect your ability to copy, display and/or play Secure Content through Microsoft software or third party applications that utilize Microsoft DRM. You 1herefore agree that, if you elect to download a license from the Internet which enables your use of Secure Content, we or our affiliates may, in conjunction with such license, also download onto your Embedded System such Security Updates that a Secure Content Owner has requested that we or our affiliates distribute. We will not retrieve any personally identifiable information, or any other infonmation, from your Embedded System by downloading such Security Updates. i. Use of NetMeeting/Remote or Assistance/Remote features. XPe may contain NetMeeting, Remote Assistance, and Remote Desktop technologies that enable it or other applications installed on the Embedded System to be used remotely between two or more computing devices, even if the SOFTWARE or application is installed on only one Embedded System. You may use NetMeeting, Remote Assistance, and Remote Desktop with all Microsoft products; provided however, use of these technologies with certain Microsoft products may require an additional license. For both Microsoft products and non-Microsoft products, you should consult the license agreement accompanying the applicable product or contact the applicable licensor to determine whether use of NetMeeting, Remote Assistance, or Remote Desktop is penmitted without an additional license. j. Use of intemet-based services features. XPe may contain components that enable and facilitate the use of certain Internet-based services. You acknowledge and agree that we or our affiliates may automatically check the version of XPe and/or its components that you are utilizing and may provide upgrades or supplements to XPe that may be automatically downloaded to your Embedded System. ;"__~___1 ,~._ _ " " " , ____. Micro.Jii'i ~).tems 28 Microsoft Product Use Rights . k. Additional software or related services. XPe may permit us or our affiliates to provide or make available to you XPe updates, supplements, add-on components, or Internet-based services components of XPe after the date you obtain your initial copy of XPe ("Supplemental Components"). If we or our affiliates make available Supplemental Components, and no other licensing terms are provided, then these terms shall apply, except that the Microsoft affiliate entity providing the Supplemental Component(s) shall be the licensor of the Supplemental Component(s). We and our affiliates reserve the right to discontinue any Internet-based services provided to you or made available to you through the use of XPe. I. Windows Media Format Software Development Kit ("WMFSDK"). See the note In section II(A)(2)(b) above. . m. Use of Device Update Agent. Notwithstanding anything contained in your license agreement, you may use the Device Update Agent to create Update Images containing all or portions of the Supplemental Code in accordance with both the Toolkit documentation and the licensing terms accompanying the Supplemental Code. n. Open source code software (i) For purposes of this Section, "Exciuded License" means any license that requires, as a condition of use, modification andlor distribution of software subject to the Excluded License, that such software or other software combined andlor distributed with such software be (A) disclosed or distributed in source code form; (B) iicensed for the purpose of making derivative works; or (C) redistributable at no charge. (ii) Your license to XPe specifically excludes any license, right, power or authority to subject XPe or derivative works thereof in whole or in part to any terms of an Exciuded License. Without limiting the generality of the preceding sentence, you do not have any license, right, power or authority to (A) create derivative works of XPe in any manner that would cause XPe or derivative works thereof in whoie or in part to become subject to any of the terms of an Excluded License; or (B) distribute XPe or derivative works thereof in any manner that would cause XPe or derivative works thereof in whoie or in part to become subject to any of the terms of an Excluded License. You shall not take any action inconsistent with this exclusion. (iii) You shall indemnify and hold us and our suppliers harmless from and against all damages, including, without limitation, attorneys' fees, arising from or related to your or your affiliates' breach of this Section. C. Windows Pre-installation Environment The following terms replace the General License Grant. 1. Installation and Use. You may install one copy bf the Software soleiI' for your internal use on a single server or on a single desktop computer. If you install the software onto a server that has more than one processor, yoll must obtain a separate license for each processor on that Server. 2. Documentation. Solely with respect to the electronic documents, you may make an unlimited number of copies (either in hardcopy or electronic form), provided that such copies shall be used only for internal purposes and are not republished or distributed beyond your premises. 3. Description of Other Rights and Limitations. Not for Use as a General Operating System. You may not use the Software as a general operating system either on a temporary or permanent basis. You acknowledge that the Software includes a time bomb 50 that the Software ceases functioning 24 hours after it is launched, until Software is launched again. You shall not and shall not attempt to disengage, block or otherwise circumvent the time-bomb feature of the Software. Not for Use as a Thin Client. You may not use the Software as a thin client or as a Remote Desktop client connected to any other system, inciuding without limitation, Microsoft Terminal Services, Microsoft Terminal Server, or any other software. D. Corporate Error Reporting (CER). The following terms replace the General License Grant. You may install and use any number of copies of the Software. Mir.mr::"ft Pmrllld II<::t:I Rinht<:: 3-42 Mir:ms:nft SV.-;tp.ms 29 Microsoft Servers > > For all products listed in the Product List as belonging to the Servers pool, these rights and restrictions apply. Be sure to read the first section and the section covering the specific product. See the Applications section of this document for use rights for Microsoft Press products. See the Developer Tools section of this document for use rights for TechNet Plus under a single user license and for developer editions of certain server products (e.g., Biz Talk Server 2002 Developer Edition). See the Systems section of this document for use rights for Windows Pre-Installation Environment. Some server products have redistn"butables w;fh associated rights and restrictions. I. Definitions and General Use Rights and Restrictions A. Definitions. These are common defined terms for Microsoft servers: "CAL" means client access license. "Client Software" (sometimes called, "Device Software") means software that allows a Device to access or utilize the Server Software. "Device" means a single personal computer, workstation, terminal, handheld computer, pager, telephone, personal digital assistant, or other electronic device. "Device Software" - see Client Software. "External User" Except as otherwise provided with respect to any particular product in any of the following product specific sections, ~External Use( means any person (not an organization) who is not any of the following: (a) your full-time, part-time or temporary employee; (b) agency temporary personnel or independent contractor on assignment at your worksite; or (c) your customer to whom you provide hosted services with the Server Software. (As used in the definition of "External User: the terms "you" and "your" refer to you and any entity that you own, which owns you, or which is under common ownership with you, unless you are a government entity. "Ownership" has the meaning given to it in your license agreement.) "Internet User" Except as otherwise provided below, "Internet User" means any person connected to the Internet, other than a person (I) employed by you (as an employee, independent contractor, agent, or in any other capacity); or (ii) otherwise providing goods or services to you (for example, one of your suppliers) or on your behalf (for example, one of your distributors or resellers, agents, or a consulting fimn hired by you). "OMAL" means Outlook Mobile Access license, "Server Software" means softlNare that provides services or functionality on your Server(s). "Server" means one of your computers that can run the Server Software. uUser" means an individual person. B. CAL (and certain other access license) Requirements 1. Single Licensee. CALs, Operations Manager Base and Application Licenses, OMALs and Student Access Licenses that you acquire may not be used in conjunction with Server Software licensed to anyone other than you. For purposes of any requirement in your license agreement that you acquire licenses under such agreement only for your use andlor benefit, CALs that you acquire and assign to external Devices or Users to facilitate, for your benefit. access to and use of Server Software licensed by you, are licenses acquired for your use andlor benefit. 2. Version Matching. Any required CAL, Exte'rnal Connector license, Internet Connector license, OMAL, Operations Manager Base License or Operations Manager Application License must have the same or later version number than the corresponding version number of the Server Software being used. For purposes of version matching, each Core CAL you acquire is deemed to have, with rejJard to each individual Server Software product to which it permits access, the version number of the latest version of that Server Software product available when that Core CAL is acquired, or any later version of that Server Software product that is made available during the Software Assurance coverage for that Core CAL. Microsoft Product Use Rights Microioft~fYers 30 3. Per Seat or Per Server. For any product licensed under the Server/CAL licensing model, you must use CALs with the Server Software in "Per Seat" mode (sometimes called "per Device or per User" mode) except where the option for "Per Server" mode is available for that product. In "Per Seat" mode", you need a separate CAL for each unique Device (or User, if applicabie) that accesses or utilizes the Server Software. If you choose "Per Seat" mode, your. choice is permanent. In "Per SalVer" mode, the maximum number of Devices (or Users, if applicable) which may access or utilize the Server Software at a given point is equal to the number of CALs that you acquire and designate for use exclusively with that Server. .Per Seat" mode CALs may also access Server Software running in the Per Server Mode, provided the additional access is within that Server's maximum licensed capacity. You may permanently change your deployment of a "Per Server" mode CAL to "Per Seat" mode. 4. Reassignmenl You may reassign any "Per Seat" CAL, OMAL, or Operations Manager Base License or Application License from one Device to another Device, or, if applicable, from one User to another User, provided the reassignment is made either (A) permanently away from the one Device or User or (B) temporarily to accommodate the use of such license by a loaner Device while a permanent Device is out of service, or the use of such license by a temporary worker while a regular employee is absent. You may reassign a Class Server Student Access License from ane of your registered students to another, provided the reassignment is made permanently away from the one registered student. 5. Administration. Except as otherwise provided beiow with regard to any particular Server Software product, you may permit up to two Devices (or Users, in the case of any Server Software product that may be accessed under User GALs) to simuitaneously access or use the Server Software solely for administration of the Server Software, without acquiring GALs for those Devices (or Users). . 6. Limited Access by Other Devices. Some products allow "limited access by other devices." For these products, each CAL or OMAL you acquire for a Device may also be used by the primary user of that Device ("Primary User") to enable access or use of the Server Software by any other Device that the Primary User uses less than twenty percent (20%) of the Primary User's total connection time. The term "total connection time" means the total amount of time the Primary User uses Microsoft Glient Software to access or otherwise use the Server Software from a Device. >> See the product specific sections below for which products allow "limited access by other devices. " C. Benchmark Testing. You may not without Microsoft's prior written approval disciose to any third party the results of any benchmark test of the following: Application Center, BizTalk, BizTalk Adapter for MQSeries, BizTalk Accelerator for Financial Services, BizTalk Accelerator for HIPAA, BizTalk Accelerator for Suppliers, BizTalk Accelerator for RosettaNet, BizTalk Adapter for SAP, Gontent Management Server, Commerce Server, HIS, Identity Integration Server, liS, ISA, Message Queue Server, Mobile Information Server, Project Server, SQL Server, or Transaction Server, or any related client software, the .NET Framework component of Windows Server 2003 (32-bit version), Exchange Server 2003, Windows Server 2003 for Small Business Server and Windows Small Business Server 2003, or the SQL Server, BizTalk Server or Firewall Server portions of Windows Smalt Business Server, Premium Edition. > > See the product specific names corresponding abbreviations. sections below for full to product name D. Software Assurance Product Support Services The following terms and conditions, together with those of your license agreement, apply to you in connection with any services from Microsoft that are included with the eligible server products you license under your license agreement. However, if you have a separate written agreement with Microsoft that governs our delivery of services to you, then its provisions will control to the extent that they connict with these terms and conditions. We can add support for new products or discontinue support for existing products. There may be cases where your implementation of our products cannot be effectively supported. As part of providing the support services, we will notify you if we reach that conclusion. If you do not modify the implementation to make it effectively supportable within 30 days after the notice, we will not be obligated to provide additional support services for that implementation, however we will continue to provide support for your other supportable impiementations covered by these terms and conditions. We will make reasonable efforts to assist you with your support requests in a manner consistent with Microsoft Product Support policies. Microsoft Product Use Rights 3-44 Microsoft Servers 31 Microsoft reserves the right to refuse unreasonable requests for support services, and at times may refer you to an additional service ievei agreement which may require an additional charge. We may use any technlcai information we derive from providing services related to our products for problem resolution, troubleshooting, product functionality enhancements and fixes, for our knowledge base. We agree not to identify you or disclose any of your confidential information in any item in the knowledge base. We are not obligated to restrict the future work assignments of people who have had access to your confidential information. In addition, you, we and these people are free to use the information that these people remember related to information technology, including ideas, concepts, know-how or techniques, so long as confidential infomnation of the other party is not disclosed in the course of such use. Your right to use any fixes we may provide to you in the course of performing services is governed by the license agreement for the affected product or, if the fix is not provided for a specific product, any other use terms we provide. All fixes provided are licensed to you. E. Other Licenses. Your use of software applications installed on the Server, accessed through the Server, or providing application- sharing functionality, may require additional licenses - please consult the license agreement accompanying such software. F. Other General Rights and Restrictions. Except as otherwise provided with regard to any particular product in any of the following product specific sections, you must license each Server and Device on or from which a copy of the Server Software or Client Software is installed, used, accessed, displayed, run, or otherwise utilized, and/or each User that accesses or uses such Server Software or Client Software. Notwithstanding any other provision in these product use rights, these product use rights do not grant any license, under any Microsoft intellectual property, to impiement any functionality contained in the Software (including without limitation communication protocols used by the Software) in any software installed on .a Device accessing or utilizing the Server Software. II. Product Specific Use Rights and Restrictions A. Application Center 2000 BizTalk Accelerator for Financial Services 1.0 Standard Edition BizTalk Accelerator for Financial Services 1.0 Enterprise Edition BizTalk Accelerator for HIPAA 1.0 BizTalk Accelerator for HIPAA 2.0 Standard Edition BizTalk Accelerator for HIPAA 2.0 Enterprise Edition BizTalk Accelerator for RosettaNet 1.1 Standard Edition BizTalk Accelerator for RosettaNet 1.1 Enterprise Edition BizTalk Accelerator for Rosetta Net 2.0 Standard Edition BizTalk Accelerator for RosettaNet 2.0 Enterprise Edition BizTalk Accelerator for Suppliers 1.0 BizTalk Adapter for MQSeries 1.0 Enterprise Edition BizTalk Adapter for SAP 1.0 BizTalk Server 2002 Standard Edition BizTalk Server 2002 Enterprise Edition Commerce Server 2002 Standard Edition Commerce Server 2002 Enterprise Edition Content Management Server 2002 Enterprise Edition Host Integration Server 2000 ("HIS") Identity Integration Server 2003 Enterprise Edition Internet Security and Acceleration Server 2000 ("ISA") 1. Products other than Standard Editions of BizTalk 2002, BizTalk Accelerator for Financial Services, BizTalk Accelerator for RosettaNet and BizTalk Accelerator for HIPAA. a. License Structure. The Software is licensed on an individual processor basis. You need one Software license for each of your Server's processors. As an exception to that rule, if you have made a processor inaccessible to ali operating system copies on which the Software is set up to run, you do not need a Software license for that processor. Examples of processors that you have made inaccessible to operating system copies are processors that you have isolated by partitioning or other slmiiar method. You do not need more than one Software license for any processor. "11__-'___. .n-__,,_I... " , ............ Mjcro~ii ~,g.,ers 32 Microsoft Product Use Rights . b. License Grant. You may install and run any number of copies of the Server Software on your Server, provided you have the required number of processor licenses. >> The exception noted in subsection (a) above applies both to licenses you acquire on or after Aprii 1, 2003 and your existing licenses for the versions of the products identified above. . 2. Standard Editions of BizTalk 2002 and BizTalk Accelerator for Financial Services and BizTalk Accelerator for RosettaNet and BizTalk Accelerator for HIPAA. Each copy of the Server Software may only be used by one processor of the Server an which such copy is installed. You need only one processor license to utilize the Server Software. The Server Software may not be used in a group beyond one machine, e.g. multiple machines all processing the same application or purpose. In addition, the Server Software may not be used to connect to more than ten (10) external organizations and may not be used to connect to mare than five (5) internal applications. 3. ISA Server. The following listed files: H.323 Gatekeeper, Message Screener, and ISA Server Management, may be installed an a separate server for use solely in conjunction with the Server Software. 4. BizTalk Adapter for MQSeries. The following listed file: MOHelper.dll may be installed on any number of separate servers far use solely in conjunction with the Server Software and you are not required to obtain a processor license for any separate selVef on which the MOHelper.dll is installed. 5. Client Software. You may install and use the Client Software on any number of internal Devices so long as it is being used only in conjunction with the SelVer Software. 6. Device Access. Except when licensed in the SBS 2000 suite, any number of Devices may use or access the services of any validly licensed Server running the Server Software. 7. BizTalk, Commerce Server, HIS Server and ISA Server Use of Redistributable Software ("SDK Software"). If included, you may install and use copies of the SDK Software an one or mare computers located at your premises solely for the purpose of building applications that work in conjunction with the Server Software ("Applications"). You may modify the Sample Code (identified in the "samples" directories) to design, develop, and test your Applications, and may reproduce and use the Sample Code, as modified, on one or more computers located at your premises. You may also reproduce and distribute the Sample Code, along with any modifications you make thereto (for purposes of this section, "modifications" mean enhancements to the functionality of the Sample Code), and any other files that may be listed and identified in a REDIST.TXT file as "redistributable" (collectively, the "Redistributable Code") provided that you comply with the distribution requirements and license limitations in section LC.1. of the Developer Tools section of these product use rights. 8. BizTalk 2002 and Commerce Server 2002 Identified Software. The following terms and conditions apply only to any software contained in BizTalk Server 2002 and Commerce Server 2002 that is identified as software that you may modify andlor redistribute (referred to in this paragraph as "Affected Code"): Your license rights to the Affected Code are conditioned upon your (a) not incorporating Identified Software into or combining Identified Software with the Affected Code or a derivative work thereof; (b) not distributing Identified Software in conjunction with the Affected Code or a derivative work thereof; and (c) not using Identified Software in the development of a derivative work of the Affected Code. "Identified Software" means software which is licensed pursuant to terms that directly or indirectly (i) create, or purport to create, obligations for Microsoft with respect to the Affected Code or derivative work thereof or (ii) grant, or purport to grant, to any third party any rights or immunities under Microsoft's intellectual property or proprietary rights in the Affected Code or derivative work thereof. Identified Software includes, without limitation, any software that requires as a condition of use, modification andlor distribution of such software that other software incorporated into, derived from or distributed with such software be (a) disclosed or distributed in source code foon; (b) be licensed for the purpose of making derivative works; or (c) be redistributable at no charge. 9. Use of Host Security Integration Feature. You may install and use the software identified as "Windows NT Account Synchronization Service" and "Host Account Cache" on any computer running a validly licensed copy of Windows NT Server within your organization. 10. BizTalk Accelerator for Financial Services and BizTalk Accelerator for HIPAA and BizTalk Accelerator for Suppliers - Use of Schemas. The Software includes various transaction schemas ("Schemas"). These Schemas are proprietary to Microsoft Corporation andlor its suppliers and may be used by you (i) only for your internal business purposes, and (Ii) soiely in connection with your use of the Software with BizTalk Server (in the case of BizTalk Accelerator for Microsoft Product Use Richts 3-46 Microsoft Servers 33 Financial Services or BizTall< Accelerator for HIPAA or BizTalk Accelerator for Suppliers) or with Commerce Server (in the case of BizTalk Accelerator for Suppiiers). You may not distribute the Schemas to any third party, without Microsoft's prior written consent. 11. Identity Integration Server. The README.HTM fiie identifies portions of the Software as "Samples". You may use and modify the source code version of the "Samples" to customize the Software for your intemal business use. B. BackOffice 2000 Server CAL Unless otherwise noted, defined terms have the same meaning as in the product use rights for your iicensed copies of BackOffice 2000 Server or, where applicable, in the product use rights for your licensed copies of the individual BackOffice 2000 Server components. 1. Types of BackOffice 2000 Server CALs. Two different types of BackOffice 2000 Server CALs are avaiiable to you: "Device" and "User." Each BackOffice 2000 Server Device CAL permits one Device (used by any User) to access or use the Server Software of BackOffice 2000 Server or any component product. Each BackOffice 2000 Server User CAL permits one User (using any Device) to access or use the Server Software of BackOffice 2000 Server, or, where applicable, any component product. You must deploy BackOffice 2000 Server CALs for use with the Server Software on a "per seat" basis. You may use a mix of BackOffice 2000 Server Device CALs and User CALs simultaneously with the Server Software. >) See "Per Seat or Per Server" in the Deffnitions and General Use Rights and Restrictions secbon for Servers. 2. BackOffice 2000 Server Device CAL and User CAL Use Rights. For each BackOffice 2000 Server CAL acquired, you may access or otherwise use the services or functionality of licensed Server Software of BackOffice 2000 Server, or any BackOffice 2000 Server component product requiring a CAL, in the manner provided for in these product use rights and the product use rights for your iicensed copies of such products. C. Small Business Server 2000 ("SBS 2000") > > SBS is a suite of various server products. Be sure to read the secbons for each component. 1. Server Use Rights. Use rights and restrictions specific to the individual components are identified in component sections. In the case of inconsistencies between this section and any section specific to an individual component, this section controls only with regard to your use of the component within the SBS suite. a. Installation and Use-Server Software. For each license acquired, you may install and use one copy of the Server Software on a single Server, provided that such Server may not be connected to more than fifty (50) Devices. You may not separate the Server Software components for use on more than one Server. Regardless of the number of licenses you acquire for the Product, only a single instance of the Product may run in a single domain (other than for data migration purposes for the period of time necessary to complete the data migration). b. Client Software. Subject to the Component product limitations, you may install and use the Client Software on up to fifty (50) Devices, provided that you have dedicated a CAL to each such Device. c. SBS 2000 CAL Requirements. Except as athelWise provided in this Section or in the Component Sections, you must acquire a separate CAL for each unique Device that accesses or utilizes the Server Software. Core CALs. BackOffice Server 2000 CALs and CALs for the individual Server Software components do not authorize you to access and use such individual Server Software components when such components are acquired as part of the SBS 2000 suite; only the SBS 2000 CAL provides you with such access and use rights. d. Health Monitor 2.1. Permitted Use. You may use Health Monitor 2.1 to (i) monitor any SeNer on which a SelVer Software component of the Product is installed as provided for above and 0i) monitor any Device to which you have dedicated a CAL. Client Access. No CAL is required for any Device used as the administrative console for Health Monitor 2.1 provided such Device is not itself being monitored by Health Monitor 2.1. e. Shared Fax Service and Shared Modem Service- Client Access. You must have a CAL for each unique Device that accesses or uses the Shared Fax Service andlor Shared Modem Service Server Software. Microsoft Product Use Rights Micro~o7t11rvers 34 f. Use of Administrator Tools. You may install and use the integrated SBS Management Console and related tools and snap-ins on any Device within your organization for the sole purpose of administering the Server Software or Client Software components acquired as part of the Product. g. Use of Redistributable Components. You may modify, reproduce or distribute the files listed in the REDIST.TXT file (collectively referred to as "Redistributable Components") provided that you comply with the Modification and Distribution Terms listed in such REDIST.TXT file. 2. CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of SBS 2000. For each license acquired. you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in such product use rights. SBS 2000 CALs grant you access to the Server Software only when it is acquired as part of the SBS suite, except that SBS 2000 CALs also authorize you to access and use the services and functionality of a Microsoft Windows 2000 Server that is in the same domain (but is not a domain controller) as the Server Software. SBS 2000 CALs do not grant you any rights of a Terminal Services Client Access License. D. Class Server 2.0 and 3.0 1. Server Use Rights a. Installation-Server Software. For each license acquired, you may install one copy of the Server Software on a single Server for the benefit of the Licensed Students, as defined below. b. Client Software. You may install the Client Software on any Device (including Devices not owned or leased by you. and not located on your premises), provided that the primary user of such Device is employed by you and is providing instruction or other educational services to one or more of the Licensed Students, as defined below. c. Student Access. You must acquire a separate Student Access License for each of your registered students who accesses the Product. For purposes of these product use rights, "Licensed Students" means your registered students to whom you allocate Student Access Licenses. d. Remote Access. You may permit any number of Devices to access the Product via the Internet, provided that the user of any such Device is (i) employed by you and is providing instnuction or other educational services to one or more Licensed Students, (ii) a Licensed Student, or (Iii) the parent or legal guardian of a License"crStudenl. e. Curriculum Standards Database. The Product may include access via the Internet to an educational standards and benchmarks curriculum database web site (the "Database Website"). In such case, the Database Website is offered to you conditioned on your acceptance without modification of the terms, conditions, and notices contained within the Database Website. Your use of the Database Website constitutes your agreement to all such terms, conditions, and notices. f. Mandatory Operating Systems Software Upgrades. The Product may contain mandatory operating systems software upgrades required for proper operation of the Product. Any such systems software upgrades are licensed to you pursuant to the same terms as provided in your license to the operating system. 2. Student Access License Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Class Server. For each Student Access License acquired, you may access Class Server in the manner provided for in such product use rights. E. Core CAL 1. Core CAL Server Products. "Core CAL Server Products" means. with respect to any given Core CAL that you acquire, (i) those Server Software products and versions that we designate in the Product List in effect at the time of such acquisition as being accessible under the Core CAL, (ii) any other Server Software product and version that we designate in the Product List from time to time during the term of Software Assurance coverage for such Core CAL, as being accessible under the Core CAL, and (iii) any later version of any such product made available during the term of Software Assurance coverage for such Core CAL. 2. CALs. The licensing model for the Core CAL Server Products consists of a Server Software product license and incremental CALs, so that the total cost to license the Software scales with usage. Different CAL types are available to suit your individual needs. 3. Types of Core CALs. Two different types of Core CALs are available to you: "Device" and "User." Each Microsoft Product Use Rights 3-48 Microsoft Servers 35 Core Device CAL permits one Device (used by any User) to access or use the Server Software of the Core CAL Server Products. Each Core User CAL permits one User (using any Device) to access or use the Server Software of the Core CAL Server Products. You must deploy Core CALs with the Server Software for the Core CAL Server Products on a "per seat" basis (sometimes referred to as "Per Device or Per User' basis). You may use a mix of Core Device CALs and Core User CALs simultaneously with the Server Software of the Core CAL Server Products. > > See "Per Seat or Per Server" in the Definitions and General Use Rights and Restrictions section for Servers. 4. Core Device and User CAL Use Rights. Unless otherwise noted, defined terms have the same meanings <,s in the product use rights for your licensed copies of the Core CAL Server Products. For each Core GAL acquired, you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in these product use rights and in the product use rights for your licensed copies of the Core CAL Server Products. F. Exchange Server 2003, Standard Edition and Exchange Server 2003, Enterprise Edition > > This Software does not transmit any personally identifiable information from your Server to Microsoft computer systems without your consent. 1. Server Use Rights a. Installation, Server Software. For each license acquired, you may install a copy of the Server Software on a single Server. An additional license is required if you install another copy of the Server Software on the same Server. b. Installation, Client Software. You may install and use the Client Software on any device solely to access or use the Server Software. c. Microsoft Office Outlook Standard 2003. A copy of Microsoft Office Outlook Standard 2003 is included with the Software as "additional Client Software. You may install one copy of Microsoft Office Outlook Standard 2003 or any prior version on a single device for which you have acquired a Device CAL (as defined in Section d). You may install one copy of Microsoft Office Outlook Standard 2003 or any prior version on a single device used by any user for whom you have acquired a User CAL (as defined in Section d). Your use of the included copy of Microsoft Office Outlook Standard 2003 is subject to the terms and conditions of these product use rights regardless of any end user license agreement that may be incorporated into or accompany Microsoft. Office Outlook Standard 2003. Inclusion of a copy of Microsoft Office Outlook Standard 2003 with the Software entitles you to use only the specific version included; it does not entitle you to successor versions of Microsoft. Office Outlook Standard 2003. d. CALs 1. Client Access License ("CAL") Requirements. In addition to the license for the Server Software, you must acquire an Exchange Server 2003 CAL or Core CAL for each individual person ("User') or device that accesses or uses the Server Software. Access or use of the Server Software means access, whether directly or through a "multiplexing service" which is defined as a software application or service accessing or using the Server Software at the request of or on behalf of a User or device. 2. Types of CALs. A Device CAL permits one device (used by any User) to access or use the Server Software. A User CAL permits one User (using any device) to access or use the Server Software. You may use a mix of Device CALs and User CALs simultaneously with the Server Software. . e. CAL downgrades. You may use Device CALs and User CALs with an earlier version of the Software in accordance with the terms of these product use rights. 2. Exchange Server 2003 External Connector a. Introduction. As used in this section, the "Software" refers to Microsoft Exchange Server 2003, Standard Edition; or Microsoft Exchange Server 2003, Enterprise Edition. Your use of the Software is governed by these product use rights and the product use rights for Microsoft Software provided with the Software ("EULA"). Capitalized terms used in this section have the same meaning as in the EULA except as otherwise provided in this section. Except as expressly set forth here, all terms and conditions of the EULA shall apply. b. Access to the Server Software. For each External Connector License you acquire, you may permit any number of External Users to access or use a single copy of the Server Software for which the External Connector License is obtained, without the need to acquire an Exchange CAL for each External User. c. Downgrades. Instead of using the Externai Connector License with the Server Software, you may use the Microsoft Product Use Rights Micro~07t1~rvers 36 External Connector License with an earlier version of the Server Software on a single Server. 3. Exchange Server 2003 CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Exchange Server 2003, Standard Edition and Exchange Server 2003, Enterprise Edition. For each Exchange Server 2003 CALacquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the product use rights for your licensed copies of Exchange Server 2003, Standard Edition or Exchange Server 2003, Enterprise Edition. G. Exchange 2000 Server and Exchange 2000 Conferencing Server" "Not available in SBS suite 1. Exchange 2000 Server Use Rights. a. Installation-Server Software. For each license acquired, you may instali one copy of the Server Software on a single Server. You may not separate component parts of the Server Software for use on more than one Server. b. Client Software. You may install the Client Software on any Device for which you have acquired either an Exchange 2000 CAL, or any Core or BackOffice 2000 Server CAL (other than a User CAL). You may install one copy of the Client Software on a single device used by any User fQr whom you have acquired a Core or BackOffice 2000 Server User CAL. Exchange Server 5.5 Software may acccmpany the Server Software. in the event it does, you may install one ccpy of the Exchange Server 5.5 Software on the same server on which you install the Server Software solely for the purpose of enabling the functioning of the Server Software. c. Exchange 2000 Server CAL Requirements. You must acquire a separate Exchange 2000 CAL for eech Device, or a separate Core CAL or BackOffice 2000 Server CAL for each Device or User, which accesses the services or functionality of the Server Software, whether you use the Client Software or any other software to do so, unless otherwise noted below: . Anonymous Access. You do not need a CAL for anonymous aCCess to the Server Software. Anonymous access occurs when an Unauthenticated Device accesses information held in the Server without having a mailbox or custom recipient object which identifies the Device. "Unauthenticated Device" means a Device that (i) does not directly or indirectiy utilize Windows 2000 Server Integrated Sign-On Service and (Ii) does not receive credentials from Windows 2000 Directory Services. Limited Access by Other Devices. Limited access for other devices is permitted as described in the tirst servers section above. d. Mode of Deployment. You must use CALs with the Server Software in 'per seat" mode. > > See "Per Seat or Per Server" in the Definitions and Generai Use Rights and Restrictions section for Servers. e. Upgrades from BackOffice Server or SBS. When you install. the Server Software, the Server Software replaces the server software ccmponent of Microsoft BackOffice Server or Microsoft SBS being upgraded, and you may use the Server Software in accordance. with these terms. The remaining, components of BackOffice Server or SBS may only be used in accordance with the terms of the end-user license agreement that accompanied the originai product suite. 2. Exchange 2000 Gonferencing Server-Server Use Rights. a. Installation-Server Software. For each license acquired, you may install one copy of the Server Software on a single Server. You may not separate component parts of the Server Software for use on more than one Server. b. Client Software. You may install the Client Software on any Device. c. Exchange 2000 Conferencing Server GAL Requirements. You must acquire a separate Exchange 2000 GAL for each Device, or a separate Core CAL or BackOffice 2000 Server GAL for each Device or User, which accesses the services or functionaiity of the Server Software, whether you use the Client Software or any other software to do so, uniess otherwise noted below. d. Limited Access by Other Devices. Limited access for other devices is permitted as described in the first servers section above. e. Mode of Deployment. You must use CALs with the Server Software in "per seat" mode. f. Installation of Server Software on Fail-over Server. Microsoft Product Use Riohts 3-50 Microsoft Servers 37 Each Server used in a clustered environment for fail-over purposes requires a separate licensed copy of the Server Software. 3. GAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Exchange 2000 . Md Exchange 2000 Conferencing Server. For each Exchange 2000 CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in these product use rights and the product "se rights for your licensed copies of Exchange 2000 and Exchange 2000 Conferencing Server. !-I. .,obile Information Server Enterprise Edition 1.0 Mobile Information Server 2002 Mobile Information Server 2002- ActiveSync Edition 1. Server Use Rights. a. Installation-Server Software. For each license acquired, you may install and use one copy of the Server Software on a single Server. b. GAL Requirements. You must acquire a separate CAL for each Device which ac"":esses or otherwise utilizes the services or functionality of ,1e Server Software, except as noted in the following sentence. c. 1\ iobile Information Server Enterprise Edition and Mobile Information Server 2002. You may access or otherwise utilize the OMA Software (definp.d below) from any Device without the need to acquir, a separate CAL. unless otherwise noted beiow. d. Outlook Mobile Access License Requirements. "OMA Software" or "Outlook Mobile Access Software" provides additional services and functionality as part of the Server Software, but may be accessed and utiiized by a Device only if you acquire an additional OMAL for such Device. You must acquire a separate OMAL for each Device which accesses or otherwise utilizes the services or functionality of the OMA Software, unless otherwise noted below. e. Limited Access by Other Devices. limited access for other devices is permitted as described in the first servers section above. 2. GAL and OMAL Use Rights. For each Mobile Information Server CAL or OMAL acquired, you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in the product use rights for your licensed copies of Mobile Information Server; provided, however, that the Mobile Information Server 2002 - ActiveSync Edition CALs may only access or otherwise use the services or functionality of Mobiie Information Server 2002 -- ActiveSync Edition. I. Office SharePoint Portal Server 2003 > > This Software does not transmit any personally identifiable information from your SelYer to Microsoft computer systems without your consent, 1. Server Use Rights, a. Installation, Server Software. For each license acquired, you may install only one copy of Server Software on a single Server, even if multiple copies of Server Software (for example, 32-bit and 54-bit versions) are included in the Software. Separate component parts of the Server Software may not be used on more than one Server. An additional license is required if you install another copy of the Server Software on the same Server (whether in a separate partition, by using server emulation software, or otherwise) or to install or run a copy of the Server Software on a different Server (for example, a Server employed for backup or fail-over support) . b. Installation, Device Software. You may install and use the Device Software on any Device solely to access or use the Server Software. c. GAL Requirements. The Software licensing model consists of the Server Software license and incremental CALs, so that the total cost for licensing the Software scaies with usage. In addition to the license for the Server Software. you must acquire a CAL for each individual person ("User') or Device that accesses or uses the Server Software, whether directly or through a Multiplexing Service (defined below). A Device CAL permits one Device (used by any User) to access or use the Server Software. A User CAL permits one User (using any Device) to access or use the Server Software. You may use a mix of Device CALs and User CALs simultaneously with the Server Software. A "Multipiexing Service" is a software product or service accessing or using the Server Software at the request of or on behalf of a User or Device. Microsoft Product Use Rjghts MicR,sJPSelYers 38 . d. Component Data Storage. The Software contains components that use the data storage technology known as Microsoft SQL Server Desktop Engine ("MSDE"). All copies and instances of MSDE contained in or installed by those Software components may be used only by those Software components. Any such copy or instance of MSDE may not be accessed or used for any other purpose. For example, applications may not be created or run on the Software if they access or use the services or functionality of any copy or instance of MSDE contained in or installed by those Software components. In addition, any MSDE network library fries that are disabled at the time you first install the Software may not be re-enabled. . . Office SharePoint Portal Server 2003 External ;";onnector a. Introduction. As used in this section, the "Software" refers to Office SharePoint Portal Server 2003. Your use of the Software is governed by these product use rights and the product use rights for Microsoft Software provided with the Software ("EULA"). Capitaiized terms used in this section have the same meaning as in the EULA except as otherwise provided in this section. Except as expressly set forth here, all terms and conditions of the EULA shall apply. b. Access to the Server Software. For each External Connector License you acquire, you may pannit any number of External Users to access or use a single copy of the Server Software for which the External Connector Lie 'nse is obtained, without the need to acquire a CAL for each External User. c. [ .,wngrades. Instead of using the External Connector License with the Server Software, you may use the External Connector License with an earlier version of the Server Software on a single Server. 3. Office Share Point Portal Server 2003 CAL Use Rights. Unless otherwise noted, defrned terms have the same meaning as in the product use rights for your licensed copies of Office Share Point Portal Server 2003. For each CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the product use rights for your licensed copies of Office SharePoint Portal Server 2003. J. Office Project Server 2003 > > This Software does not transmit any personally identifiable information from your Server to Microsoft computer systems without your consent. 1. Server Use Rights. a. Installation, Server Software. For each license acquired, you may instail only one copy of Server Software on a sirgle Server, even if multiple copies of Server Software (for example, 32-bit and 54-bit versions) are included in the Software. Separate component parts of the Server Software may not be used on more than one Server. An additional license is required if you install another copy of the Server Software on the same Server (whether in a separate partition, by using server emulation softwam, or otherwise) or to install or run a copy of the Server Software on a different Server (for example, a Server employed for backup or fail-over support). b. Installation, Device Software. You may install and use the Device Software on any Device soiely to access er use the Server Software. c. CAL Requirements. The Software licensing model consists of the Selver Software license and incremental CALs, so that the total cost for licensing the Software scales with usage.' In addition to the iicense for the Server Software, you must acquire a CAL for each individual person ("User") or device that accesses or uses the Server Software, whether directly or through a Multiplexing Service (defrned below). A Device CAL permits one Device (used by any User) to access or use the Server Software. A User CAL permits one User (using any Device) to access or use the Server Software. You may use a mix of Device CALs and User CALs simultaneously witr' the Server Software. A "Multiplexing Service" is a software product or service accessing or using the Server Software at the request of or on behalf of a User or Device. 2. Office Project Server 2003 External Connector a. Introduction. fl.s used in this section, the "Software" refers to Office Project Server 2003. Your use of the Software is governed by these product use rights and the product use rights for Microsoft Software provided with the Software ("EULA"). Capitalized terrns used in this section have the same meaning as in the EULA except as otherwise provided in this section. Except as expressly set forth here, all terms and conditions of the EULA shall apply. b. Access to the Server Software. For each External Connector License you acquire, you may permit any number of Extemal Users to access or use a singie copy of the Server Software for which the Extemal Connector Microsoft Product Use Riehts 3-52 Microsoft Servers .~Q License is obtained, without the need to acquire a CAL for each Externai User. c. Downgrades. instead of using the External Connector License with the Server Software, you may use the External Connector License with an earlier version of the Server Software on a single Server. 3. Office Project Server 2003 CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Office Project Server 2003. For each CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the product use rights for your licensed copies of Office Project Server 2003. K. Operations Manager 2000 1. Server Use Rights. a. Definitions The Product may contain the following software: . 'Client Software" enables a Device monitored and/or managed by the Software. . MDevice," as used in this section, means a single personal computer, workstation, terminal, handheld computer, pager, telephone, personal digital assistant, or other electronic device (including a Server). . "Managed Device" means a Device that is monitored and/or managed by the Manager Server. to be Server . "Manager Server" means your computer on which the Server Software is installed. . "Other Software" means Software, if any, contained in the Application Management Pack that (i) enables operations consoles and reporting consoles ("Administration Consoles") to access the services and functonality provided by the Server Software, and (Ii) updates databases utilized by the Server Software which may be stored on computers separate from the Manager Server ("Database Computers"). . "Server Software," as used in this section, provides centralized event monitoring and management services or functionality from your Manager Server. b. License Structure. The Software is licensed on an individual processor basis. Processor licenses for Operations Manager are referred to as "Base LicensesN and "Application Licenses." You need one Base License for each of your Manager Server's processors and for each of your Managed Device's processors, whether or not you use the Base Management Pack Rules of the Server Software (as described in the Product documentation). As an exception to that rule, if you have made a processor inaccessible to all operating system copies on which the Server Software or Client Software is set up to run, you do not need a Base License for that processor. Examples of processors that you have made inaccessible to operating system copies are processors that you have isolated by partitioning or other similar method. You do not need more than one Base License for any processor. In addition to any required Base License, you need an Application License for each Managed Device's processors (including your Manager Server) that is monitored and/or managed by the Server Software using the Application Management Pack Rules of the Server Software (as described in the Product documentation). As an exception to that rule, if you have made a processor inaccessible to all operating system copies on which the Serve~ Software or Client Software is set up to run, you do not need an Application License for that processor. Examples of processors that you have made. inaccessible to operating system copies are processors that you have isolated by partitioning or other similar method. You do not need more than one Application License for any processor. > > The exceptions noted above apply both to licenses acquired on or after April 1, 2003 and your existing Microsoft Operations Manager 2000 Base Licenses and Microsoft Operations Manager Application Management Pack 2000 Licenses. c. License Grant. Provided you have the required number of Base Licenses and Application Licenses: i. Server Software. You may install and run any number of copies of the Server Software on your Manager Server. ii. Client Software. You may install the Client Software on any Managed Device. iii. Other Software. You may upgrade, install and use any number of copies of the Other Software solely for Administration Consoles and Database Computers residing on your premises. Microsoft retains all right, titJe and interest in and to the Application Management Pack. d. Special note for Microsoft SQL Server. The use of Microsoft SQL Server on a separate computer for a repository monitored and/or managed by the Microsoft Product Use Rights 3-53 Microsoft Servers 40 Software requires that you obtain one or more Bas~ Licenses as set forth above. If Microsoft SQL Server is also separately monitored andlor managed by the Software, you must also obtain one or more Application Licenses. . e. Administration. You do not need a Base License or Application License soiely for hosting the administration console of the Server Software. L. Project Server 2002 1. Server Use Rights. a. Installation-Server Software. For each License acquired, you may install and use one copy of the Server Software on a single Server. If you have acquired the Server Software. you may install any number of instances of the Server Software on that Server. An 'instance" shall mean a running copy of the Server Software. b. Client Software. You may install the Client Software (PROJECT SERVER) on any intemal Device for which a CAL has been assigned. c. CAL Requirements. A CAL allows a device to access or otherwise utilize the Server Software. You must acquire a separate CAL for each Device that accesses or otherwise utilizes the services of the Server Software. d. Installation Of Server Software On Passive Fail- Over Server. If the Server Software is used in a clustered environment, you may use the Server Software on a temporary basis on a Server that is employed only for fail-over support. e. Share Point Team Services. The Server Software may contain a copy bf the SharePoint Team Services software. If so, for each license acquired, you may install one copy of the SharePoint Team Services software on one Device and allow an unlimited number of individuals within your business or enterprise to access and use the Shareeoint Team Services software from other Devices; provided, that each Device upon which the SharePoint Team Services software is installed has a validly licensed copy of the Server Software installed on it. f. Project Web Access Components. Installation. For purposes of this section, the Software means the Project Web Access Components. You may install the Software any number of Devices for the sole purpose of enabling you to access and utilize the functionality of Microsoft Project Server 2002, provided that Microsoft Project Server 2002 has been validly licensed, and a valid Client Access License has been obtained and assigned to the Device upon which the Software is installed. 2. CAL Use Rights. For each Project Server CAL acquired, you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in the product use rights for your licensed copies of Project Server. M, Real-Time Communications (URTC") Server 2003, Standard Edition 1. Server Use Rights. a. Installation, Server Software. For each license acquired, you may install and use a copy of Server Software on a single Server. Separate component parts of the Server Software may not be used on more than one Server. An additional license is required if you instal! another copy of the Server Software on the same Server (whether in a separate partition, by using server emulation 5oftwarE~, or otherwise) or to install or run a copy of the Server Software on a different Server (for example, a Server employed for backup or fail-over support). b. Installation, Device Software. You may install and use the Device Software on any Device solely to access or use the Server Software. c. GALs. The Scftware licensing model consists of an application license and incremental CALs, so that the total cost for licensng the Software scales with usage. i. GAL Requirements. In addition to the license for the Server Software, you must acquire a CAL for each individual person ('User") or device that accesses or uses the Server Software. Access or use of the Server Software means access, whether directly or through a umultiplexing service" which is defined as a software product or service accessing or using the Server Software at the "'quest of or on behalf of a User or Device. ii. Types of GALs. A Device CAL penmits one Device (used by any User) to access or use the Server Software. A User CAL pemlits one User (using any Device) to access or use the Server Software. You may use a mix Microsoft Product Use Rlahts 3-54 Microsoft Servers 41 of Device CALs and User CALs simultaneously with the Server Software. iii. Devices or Users not Registering Presence. You do not need to acquire a CAL for any User or Device whose presence information is not registered with a Home Server. For purposes of this section, the temn "Home Server" means the component of the Server Software that accepts, processes and registers the presence information of users and devices accessing the Server Software, and makes all or a part of such presence information known or available to other Users and Devices. 2. Real-Time Communications ("RTC") Server 2003 External Connector a. Introduction. As used in this section, the "Software" refers to RTC Server 2003. Your use of the Software is governed by these product use rights and the product use rights for Microsoft Software provided with the Software ("EULA"). Capitalized temns used in this section have the same meaning as in the EULA except as otherwise provided in this section. Except as expressly set forth here. all terms and conditions of the EULA shall apply. b. Access to the Server Software. For each External Connector License you acquire, you may permit any number of External Users to access or use a single copy of the Server Software for which the External Connector License is obtained, without the need to acquire a CAL for each External User. 3. Real-Time Communications ("RTC") Server 2003 CAL Use Rights. Unless otherwise noted, defined temns have the same meaning as in the product use rights for your licensed copies of RTC Server 2003. For each CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the product use rights for your licensed copies of RTC Server 2003. N. Services for NetWare 5.02 1. Installation-Server Software. For any license acquired, you may install an unlimited number of copies of the Server Software on your Servers. Client Software. You may install the Client Software on any Devices, O. SharePoint Portal Server 2001 1. Server Use Rights. a. Installation-5erver Software. For each license acquired, you may install one copy of the Server Software on a single Server. b. Client Software. You may install the Client Software on any Device either (i) for which you have acquired a SharePoint Portal Server CAL or a Core CAL (other than a Core User CAL), or (ii) that is used by a User for whom you have acquired a Core User CAL c. CAL Requirements. i. General. You must acquire a separate SharePoint Portal Server CAL for each Device or a Core CAL for each Device or User which accesses or otherwise utilizes the services or functionality of the Server Software, whether you use the Client Software or any other software to do so, unless otherwise noted below. ii. Limited Access by Other Devices. Limited access for other devices is pemnitted as described in the first servers section above. d. Additional License Grant for System Administrators. You may allow system administrators within your business or enterprise to access and use the Software for the sole purpose of assisting you with installing, configuring, and maintaining licensed copies of the Software. You must obtain separate licenses and/or Share Point Portal Server CALs or a Core CALs for the Software for system administrators for any other use. 2. External Connector for Non-Employees. For each External Connector for Non-Employees acquired. you may permit an unlimited number of Devices to access a single copy of SharePoint Portal Server 2001 licensed by you, without the need to acquire CALs for each such Device, provided such Devices are used only by External Users. If any user does not clearly qualify as an "External User" as defined at the beginning of the Server section in these product use rights, that user will not be treated as an External User for purposes of this section. 3. CAL Use Rights. For each Share Point Portal Server CAL or a Core CAL acquired, you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in the these product use rights and the product use rights for your licensed copies of SharePoint Portal Server. P. Microsoft Product Use Rights Mic~so9t~ervern 42 SQL Server 2000 SQL Server 2000 Runtime ("SQL 2000 Runtime") . > > SQL Server 2000 is avaiiable in per seat (with CALs) or per processor licenses. SQL 2000 Runtime is not available in the sas suite. 1. Server Use Rights. For SOL Server 2000 acquired outside the SBS suite and SOL 2000 Runtime, you may license the Product for use in either in "Per Seat" (with CALs) or "Per Processor" mode, and you may not change the type of use. For SOL Server 2000 acquired within the SBS suite, you may oniy use the Product in "Per Seat" (with CALs) mode. a. Per Seat (with CALs) Licensing i. Installation-Server Software. For each license acquired, you may install and use one copy of the Server Software on a single Server. SOL Server, Enterprise Edition. If you have acquired the Enterprise Edition of the Server Software, you may instail any number of instances of the Server Software on that Server. An "instance" means a running copy of the Server Software ii. Client Software. You may instail the Client Software (SOL Server Personai Edition) on any internal Device. iii, Types of SOL Server 2000 CALs. Two different types of SOL Server 2000 CALs are available to you: "Device" and "User." Each SOL Server Device CAL permits one Device (used by any User) to access or use the Server Software of SOL Server 2000. Each SOL Server 2000 User CAL permits one User (using any Device) to access or use the Server Software of SOL Server 2000. iv. Mode of Deploymenl You must use GALs with the Server Software in ~per seat" mode. You may use a mix of Device GALs and User GALs simultaneously with the Server Software. > > See "Per Seat or Per Server' in the Definitions and General Use Rights and Restrictions seclion for Servers. v. SOL Server 2000 CAL Requirements. You must acquire either a separate SOL Server 2000 GAL or BackOffice 2000 Server GAL for each Device or User that: ell Accesses. or otherwise utilizes the services of the Server Software (including Devices using MSDE for such access), or . Instails ald uses SOL Server Personal Edition, or . Uses the Management Tools, Books-Online, and Development Tools components of Microsoft SOL Server (coilectively "Tools"). You may oniy use the Tools for internal use in conjunction with your Server Software. vi. Installation of Server Software on Passive Fail- Over Server. If the Server Software is used in a clustered environment, you may use the ,Server Software on a temporary basis on a Server that is employed only for fail-over support. b. Per Processor Licensing i. License Structure. The Software is licensed on an individual processor basis. You need one Software license for each 4Jf your Server's processors. As an exception to that ;ule, if you have made a processor inaccessible to all operating system copies on which the Software is set up to run, you do not need a Software license for that processor. Examples of processors that you have made inaccessible to operating system copies are processors that you have isolated by partitioning or other similar method. You do not need more than one Software license for any processor. il. License Grant. Provided you have the required number of processlJr licenses: a, You may install and run any number of copies of the Server Softwa", on your Server. >> The exception noted in subsection (i) above applies both to SQl. Server 2000 processor licenses acquired on or after April 1, 2003 and your existing SQL Server 2000 processor licenses. b, Tools. You may use the Management Tools, Books-Online, and Development Tools components of Microsoft SOL S€!rver (collectively "Tools") solely for internal use in conjunction with your licensed copies of the Server Software. c. Client Software. You may install and use the Glient Software (SOL Server Personal Edition) on any number of Internal Devices so long as it is being used only in conjunction with the Server Software, and, in the case of SOL 2000 Runtime, the integrated software turnkey application or suite of Microsoft Product Use Riqhts 3-56 Microsoft Servers 43 applications delivered with the Product ("Integrated Application"). Iii. SOL Server 2000 Device Access. Any number of Devices may use or access the services of any validly licensed Server running the Server Software. iv. SOL Server 2000 Runtime Device Access. Any number of Devices may use or access the services of the Server Software on any validly licensed Server in conjunction with the Integrated Application. You may permit Devices to access or use only the services of the Server Software provided with the Integrated Application. V. Installation of Server Software on Passive Fail- Over Server. If the Server Software is used in a clustered environment, you may use the Server Software on a temporary basis on a Server that is employed only for fail-over support so long as the number of that Server's processors accessible to operating system copies on which the Software is set up to run does not exceed the number of Software licenses acquired far your primary active Server. > > The following redistributabie section applies to SQL Server 2000 products. vi. Redistributable Code. In addition to the rights granted above, Microsoft grants you the nonexclusive, royalty-free right to use, reproduce and distribute the Microsoft SOL Server Desktop Engine ("MSDE") and the files listed in the REDIST.TXT contained in the Product (collectively, the "Redistributable Code"), provided that you also comply with the distribution requirements and license limitations provided in Sections I.C.1. and I.C.2.a. of the Developer Tools section of these product use rights. vii. Runtime-Restricted Use Software. You may use SOL 2000 Runtime solely as part of the Integrated Application solely to run the Integrated Application. SQL 2000 Runtime may not be used either (i) to develop or (ii) in conjunction with, new applications, databases or tables other than those contained in the Integrated Application. You may, however, use a tool to run queries or reports from existing tables, or use a development environment or workbench which is part of the Integrated Application to configure or extend such Integreted Application. Notwithstanding anything to the contrary in these use rights, you may only transfer a given license for SOL 2000 Runtime as part of the Integrated Application, subject to the transfer restrictions in your license agreement. 2. CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of SQL Server 2000. For each SOL Server 2000 GAL acquired, you may access or otherwise use the services Of functionality of licensed Server Software in the manner provided for in these product use rights and the product use rights for your licensed copies of SOL Server 2000. You must deploy SOL Server 2000 GALs with the Server Software on a "per seat" basis. You may use a mix of SQL Server 2000 Device CALs and User GALs simultaneously with the Server Software. > > See "Per Seat or Per Server" in the Definitions and General Use Rights and Restrictions section for SeIVers. SOL 2000 Runtime GALs permit you to access or otherwise utilize the services or functionality of only a Runtime"Restricted Use version of the Server Software. Notwithstanding anything to the contrary in these use rights, you may only transfer a given SQL 2000 Runtime GAL as part of the Integrated Application, subject to the transfer restrictions in your license agreement. Q. System Management Server 2.0 ("SMS") 1. Server Use Rights. a. Installation-Server Software. For each license you acquire, you may install one copy of the Server Software on a single Server. b. Client Software. You may install and use the Installer component of the Glient Software ("SMS Installer") only on Devices within your organization and only for the purpose of creating installation pro"grams through the use of SMS Installer ("Setup Programs"). You may also use and modify the source code designated as 'Sample Code" in the SAMPLES.TXT file for the sole purposes of designing, developing, and testing your Setup Programs. You may also install and use in object code form the Redistributable Components (as defined below), along with any modifications you may make to the Sample Gode, only on Devices within your organization for a purpose other than creation of Setup Programs, so long as you (i) reproduce and use the SMS Redistributables only in conjunction with or as part of a Setup Program; (ii) either have a valid GAL for any version of Microsoft Microsoft Product Use Rights Micro}off%lrvers 44 Systems Management Server for each Device, or a valid Core or BackOffice 2000 Server CAL for each User or Device, that uses the SMS Redistributables; and (iil) indemnify, hold harmless, and defend Microsoft and its suppiiers from and against any claims or lawsuits, including attorney's fees, that arise or resuit from the use of your Setup Program or any software instalied by your Setup Program. You do not have any other right to instali or use SMS Instalier. c. CAL Requirements. Except as otherwise provided in the following sentence, you must acquire a separate SMS CAL for each Device, or a separate Core or BackOffice 2000 Server CAL for each Device Of User which accesses or otherwise utilizes the services or functionality of the Server Software. whether you use the Client Software or any other software to do so. You do not need a CAL in order to solely execute Systems Management Server-to-Systems Management Server communications that are soleiy managing a third Device. d. Mode of Deployment. You must use CALs with the Server Software in "per seat" mode. You may use a mix of Device CALs and User CALs simuitaneously with the Server Software. . > > See "Per Seat or Per Server" in the Definitions and General Use Rights and Restrictions section for Servers. e. Use of the Redistributable Components. You may reproduce and distribute the files listed in the REDIST.TXT file (coliectively referred to as "Redistributable Components"), aiong with any modifications you may make to the Sample Code, provided that you compiy with the Distribution Terms listed in such REDiST.TXT file. Note that the Distribution Terms include, among other conditions, terms similar to those described in subsections (i) - (iii) of the Client Software note above. f. Administration Console or Utilities. You also do not need to acquire a CAL for Microsoft SOL Server to use the administration console or utilities provided with Systems Management Server to access or otherwise utilize the services of Microsoft SOL Server. g. Software Metering, Logon Point, and Client Access Points. You may instali and use the Metering Services and Client Access Points components of the Server Software on any computer running a validly lice,nsed copy of Windows NT Server within your organization h. Upgrades of a Component of the SackOffice Server 4.5 or SSS 4.5 Suites. You may upgrade a component within the BackOffice Server suite, so long as the upgraded component is run on the same SE,rver on which the component being upgraded is installed, unless the upgraded component is an Enterprise or Commerce Edition, in which case you may use the upgraded component as a stand-alone product. Subject to the immediately preceding sentence, when you instali the upgraded component, (i) the upgraded component replaces the component in the suite being upgraded, (I) your use of the upgraded component is subject to thE' terms of use associated with that component, and (iii) the remaining components of SackOffice Server may only be used in accordance with these use terms. See conditions no':ed in the SSS 4.5 section above. 2. CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in th,~ product use rights for your licensed copies of SMS. For each SMS CAL acquired, you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in these product use rights and the product use rights for your licensed car:ies of SMS. Upgrades of CALs for SSS 4.5 Suite. See conditions noted in the SBS 4.5 section above. R. TechNet Plus 1. Server Use Rights. a. Installation-Server Software. . For each license acquired, you may install and use one copy of the Server Software on a single S~rver which may only be accessed by you, your employees and your individual contractors, if any. If the Server has more than one processor, you must obtain a separate license for each processor on that Server. You may use the Serv..r Software only with that number of processors for which you are properly licensed. . For each Software Assurance TechNet Plus subscript on media you have, you may install and use an unlimited number of copies of the Server Software on Servers within your organization covered by the qualifying membership which may only be accessed by Microsoft Product Use Riahts 3-58 Microsoft Servers 45 you, your employees and your individual contractors, if any. b. Client Software. You may install the Client Software on any Device. No license is required for Devices running the Client Software to access the Server Software. 2. Other Rights and Restrictions. a. Online Services. For each license acquired and each Software Assurance TechNet Plus subscriber identification number you have, a single access point may register and access the Subscriber-only Online Services website, including but not limited to the Online Concierge Chat Support and Managed Newsgroups Support. b. Copies. The Product may contain materials, including without limitation, technical documentation, white papers, and printed materials ("Documentation"). You may make any number of copies of Documentation accompanying the Product, so long as the copies are used only for internal purposes or are provided to your customer(s) as part of software or hardware support, provided that (1) the Documentation accompanying the Product (a) is not distributed for profit, (b) is not modified, and (c) contains all copyright notices; and (2) you do not authorize any redistribution by your end users, except as provided below. c. Pre-Release Software. By acquiring a TechNet Plus license, you may receive pre-release software. In order to use such pre-release software, you also agree to the applicable terms and conditions accompanying the beta software, which document(s) govem your rights and obligations with respect to any beta software you receive. d. Redistributable Components. The Product may contain software components, including without limitation drivers, utilities, tools, and patches ("Files"), as well as .DLL files, the use of which is not governed by a Component Agreement. For such Files and .DLL files, Microsoft grants you a non-exclusive royalty-free right to reproduce and distribute the Files, provided that you: a. Distribute the Files for your internal use only or to your customer(s) as part of software or hardware support, provided that (i) the Files are not distributed for profit, (ii) the Files are used only in conjunction with licensed copies of Microsoft products, (Iii) the Files may not be modified, (iv) the Files contain all copyright notices, and (v) you do not authorize any redistribution by your licensees or end users; b. Distribute the .DLL files only in conjunction with and as a part of your software product; c. Do not use Microsoft's name, logo, or trademarks to market your software product; d. Agree to indemnify, hold harmless, and defend Microsoft and its suppliers from and against any claims or lawsuits, including attorneys' fees, that arise or result from the use of the Files or .DLL files or use or distribution of your software product containing the Files or .DLL files; and e. Otherwise comply with the terms of your license agreement. S. Windows Server 2003, Standard Edition, Windows Server 2003, Enterprise Edition Windows Server 2003, Web Edition >> This Software does not transmit any personally identifiable information from your Server to Microsoft computer systems without your consent. 1. Server Use Rights. a. Installation. Server Software. For each license acquired, you may install only one copy of Server Software on a singie Server, even if multiple copies of Server Software (for example, 32-bit and 54-bit versions) are included in the Software. Features supported on 32- bit and 54-bit versions, including some features mentioned in these product use rights, may not be identicai or available in both versions; please refer to product documentation for a list of specific features included with each version. Separate component parts of the Server Software may not be used on more than one Server. An additional license is required if you install another copy of the Server Software on the sar11e Server (whether in a separate partition, by using server emulation software, or otherwise) or to install or run a copy of the Server Software on a different Server (for example, a Server employed for backup or fail-over support). b. Processor Rights. If you license Microsoft Windows Server 2003, Enterprise Edition, you may use the Software with up to eight CPUs of the Server at any one time If you license Microsoft Windows Server 2003, Standard Edition, you may use the Software with up to four CPUs of the Server at anyone time. If you license Microsoft Windows Server 2003, Web Edition, you may Microsoft Product Use Rights MiC~SO~ ~efVem 46 use the Software with up to two CPUs of the Server at anyone time. . c. Windows Server 2003, Enterprise Edition (or DataCenter Edition) General Terms and Conditions of Your Use of Windows Rights Management Services Components ("RMS Components"). You may reproduce, install and use one copy of the RMS Components per validly licensed copy of Windows Server 2003, Enterprise Edition (or DataCenter Edition) installed on your server to update each such copy. RMS is a service of Windows Server 2003 which works in conjunction with Rights Management ("RM") enabled applications and Windows RM client components to let users specify permitted uses of their information such as Web content, e-mail messages and documents ("Information"). RMS creates or signs various certificates to facilitate the creation and consumption of RM- protected information among authorized entities. An internet connection is required to install and enroH an entity's root RMS server. The server enrollment process establishes the certificates that enable the servers to issue licenses that are trusted by the RMS system. Microsoft will issue certificates and maintain a certificate revocation list as outlined in the certification practice statemeR! ("CPS"). for more information on the CPS for RMS. please refer to hUe :IIWWIN. microsaft.com/ckilrms/cDs. )) The right above applies both to licenses you acquire on or after July 1, 2003 and your existing licenses for Windows Server 2003, Enterprise Edition (or DataCenter Edition). d. Installation, Device Software. You may install and use the Device Software on any Device solely to access or use the Server Software. e. Volume License Product Key Validation. There are technological measures in the Software that are designed to prevent unlicensed use of the Software. We will use those measures to help ensure you have a valid Volume License Product Key for the Software. If you are not using a vaiid Volume License Product Key for the Software, you are not allowed to install the Software or future Software updates. Microsoft will not collect any personally identifiable information from your Server or any device during this process without your consent f. CALs. Except as noted with respect to Windows Server 2003, Web Edition, in the following paragraph, the Software licensing model consists of an operating system license and incremental CALs, so that the total cost for licensing the Software scales with usage. Several CAL types and licensing modes are available to suit your individual needs. CALs are not ap;: licable with respect to Windows Server 2003, Web Edition. Windows Server 2003 CALs you acquire do not convey any rights with respect to such Software. i. Windows Server 2003 CAL Requirements. In addition to the license for the Server Software, you mJst acquire either a Windows Server 2003 CAL or Core CAL for each User or Device that accesses or uses the Server Software, whether directly or through a Multiplexing Service (defined below). For example, a Windows or Core CAL is required for each User or Devi~e that uses any of the following services of the Server Software: . authentication services (when user or application credentia's are exchanged between the Server Software and a User or Device), . file services (accessing or managing files or disk storage), . printing services (printing to a printer managed by the Server Software), or . remote c: ccess service (accessing the Server from . remote location through a communil;:ations link, including a virtual private network). However, you do lot need to acquire a Windows or Core CAL for any User or Device that accesses the Server Software solely through the Internet and is not authenticated or otherwise individually distinguished by the Server Software or a Multiplexing Service (for exampie, by browsing a public website anonymously). A "Multiplexing Service" is a software application or service accessing or usin'J the Server Software at the request of or on behalf of a User or, Device. Further, you do nat need to acquire a Windows or Core GAL for any Us!~r or Device that has a valid Small Business Server (SBS) 2003 CAL, is accessing Server Software that is not operating as a domain controller, and is within the same Small Business Server domain. ii. Types of Windows CALs. Two different types of Windows CALs are available to you: "Device" and "USE"." Each Windows Device CAL permits one Device (use(j by any User) to access or use the Server Software. Each Windows User CAL permits one User (using any Device) to access or use the Server Software. You may use a mix of Windows Device CALs and Windows Us", CALs simultaneously with the Server Software. Microsoft Product Use Rights 3-60 Microsoft Servers 47 iii. Windows GAL Licensing Modes. At your option, you may use Windows CALs with the Server Software in either "Per Device or Per User" or "Per Server" mode. You may use Core CALs in "Per Device or Per User" only. (i) In Per Device or Per User mode, either a separate Windows CAL or Core CAL is required for each Device or User that accesses or uses Server Software on any of your Servers. If you choose Per Device or Per User mode, the choice is permanent. (ii) In Per Server mode, the maximum number of Devices and Users that may simultaneously access or use Server SofuNare installed on a particular Server equals the number of Windows CALs (of either type) that you acquire and designate for use exclusively with that Server. You have the one-time right to change your use of the Server Software from Per Server mode to Per Device or Per User mode. If you do so, you may apply the same number of Windows CALs you acquired for use in Per Server mode in Per Device or Per User mode instead. iv. Terminal Server Client Access License for Windows Server 2003 ("TS GAL") Requirements. In addition to a Windows CAL or Core CAL, if you wish to conduct a Windows Session, you must acquire a TS CAL for each User or Device. A "Windows Session" means a session during which Server Software hosts a graphical user interface on a Device (whether via the Terminal Services component of the Server Software or via other technology). v. Types of TS GALs; TS GAL Licensing Modes. Similar to Windows CALs, two different TS GALs are available to you: "Device" and "User: Each TS Device CAL permits one Device (used by any User) to conduct Windows Sessions on any of your Servers. Each TS User CAL permits one User (using any Device) to conduct Windows Sessions on any of your Servers. You may use a mix of TS Device CALs and TS User CALs simultaneously with the Server Software. Windows Sessions are not allowed in Per Server mode. vi. Additional GAL Requirements. Administration. You do not need a TS CAL when attaching to or mirroring the single Console Session. The "Console Session" is the Windows Session that is conducted through the designated primary keyboard and display device (or similar peripherals). >> See the Windows 2000 SelVer section for use rights for the Tennina! Server Work at Home license. - vii. RMS GAL Requirements. In addition to a Windows CAL or Core CAL, in connection with your use of the RMS Components, you must acquire an RMS CAL for each User or Device. Access or use of the RMS Components means access, whether directly or through a "multiplexing service" which is defined as a software product or service accessing or using the Server Software at the request of or on behalf of a User or Device. viii. Types of RMS GALs; RMS GAL Licensing Modes. Similar to Windows GALs, two different RMS CALs are available to you: "Device" and "User.' Each RMS Device CAL permits one Device (used by any User) to access the RMS Gomponents on any of your Servers. Each RMS User CAL permits one User (using any Device) to access the RMS Components on ahy of your Servers. You may use a mix of RMS Device CALs and RMS User CALs simultaneously with the Server Software. g. Premium Windows Server Services. We may subsequently create new software functionality ("Premium Services") that you may wish to use with this version of the Software. To make these Premium Services available to you for use with this version of the Software, we may provide them under additional license terms and may charge additional access license fees for you to install and use them, if you choose. h. Windows Server 2003, Web Edition, Usage Rights. The Server Software may be used solely for deployment of Web pages, Web sites, Web applications, Web services, and POP3 mall serving. You may install web server software (for ex~mple, Microsoft Internet Information Services), non-enterprise database engine software licensed to support not more than twenty~ five (25) concurrent users (for example, Microsoft SOL Server Desktop Engine), or web availability management software (for example, Microsoft Appiication Center). These applications may access data from anyone or more of the following applications deployed on a separate server: (i) database software (such as Microsoft SOL Server), and (II) business application software (for example, enterprise email, enterprise resource planning, and customer relationship management). Any other usage of the Server Software is not permitted. Microsoft Product Use Rights {I\,.,..,"'...-..........\ IC......../:..j..,\ /1..1..""1"1-:1' MiC~s,j Servers 48 i. Description of Other Rights and Limitations, i. Component Data Storage. The 32-bit version of the Software contains components that use the data storage technoiogy known as Microsoft SOL Server Desktop Engine ("MSDE"). All copies and instances of MSDE contained in or installed by those Software components may be used only by those Software components. Any such copy or instance of MSDE may not be accessed or used for any other purpose. For example, applications may not be created or run on the Software if they access or use the services or functionality of any copy or instance of MSDE contained in or installed by those Software components. In addition, any MSDE network library files that are disabled at the time you first install the Software may not be re- enabled. ii. Automatic Internet-Based Services. Th'e Software features described below are enabled by default to connect via the Internet to Microsoft computer systems automatically, without separate notice to you. You consent to the operation of these features, unless you choose to switch them off or not use them. Microsoft does not obtain personally identifiable information through any of these features. For more information about these features, please see your Software documentation or the Microsoft online support site. (a) Windows Update Features. Under the Software's default configuration, if you connect a device to your Server and the correct device driver is not available on your Server, then Windows Update features on your Server (including Device Manager and the Plug & Play CDM Module) automatically attempt to check Microsoft computer systems via the Internet for the correct device driver. Having this happen automatically makes Plug-and-Play installation of new hardware a better experience for customers. You may switch off Windows Update's automatic driver checking feature. (b) Web Content Features. Under the Software's default configuration, if you are connected to the Intemet, several features of the Software are enabled by default to retrieve content from Microsoft computer systems and display it to you. When you activate such a feature, it uses standard Internet protocols, which transmit the type of operating system, browser and language code of your Server to the Microsoft computer system so that the content can be viewed properly from your Server. These features only operate when you activate them, arid you may choose to swrtch them off or not use them. Examples of these features include Windows Catalog, Search Assistant, and the Headlines and Search features of Help and Support Center. (c) Digital Certificates. Use of certificates based on the X.509 standard is an important security feature of the Software. Certain functions of the X.509 implementation (for example, certificate revocation checking and certificate path building) connect via the Internet to compul,er systems belonging to Microsoft and other digital certifi :ate authorities to check the validity of digital certificates that you receive from third parties during certain Internet-based operations (for example, communications sl~cured with SSL or IPsec, mail secured with S/MIME, and smartcard authentication). In accordance with the X.SOg standard, the Software automatically retrieves user certificates and certificate revocation lists W1en you attempt to access certificate protected content. Additionally, the Software's Auto Root Update feature will occasionally update the list of trusted certificate authorities. Auto Root Update is an optional feature; you can uninstall it if you do not 'desire it to function. The other security operations based on the X.509 standard can be prevented from operating by blocking Server Internet access. (d) Windows Media Digital Rights Management. Content providers are using the djgita~ rigtm; management technology for Windows Media contained in Windows Server :!003, Standard Edition and Windows Server 2003 Enterprise Edition ("WM-DRM") to protect the integrity of their content ("Secure Content") so that their intellectual ~roperty, including copyright, in such content is not misappropriated. Portions of such Software and third party applications such as media players use WM-DRM to play Secure Content ("WM-DRM Software"). If the WM-DRM Software's security has been compromised, owners of Secure Content rSecure Content Owners") may request that Microsoft revoke the WM-DRM Software's right to copy, display and/or play Secure Content. R evocation does not alter the WM-DRM Software's ability to play unprotected content. A list of revoked WM-DRM Software is sent to your computer whenever you download a iicense for Secure Content from the Internet. Microsoft may, in conjunction with such license, also download revocation lists onto your computer on behalf of Secure Content Owners. Secure Content Owners IT ay also require you to upgrade some of the WM-DRM ccmponents in this Software ("WM-DRM Upgrades") before accessing their content. Wheo you attempt to play such content, WM-DRM Software built by Microsoft will notiiy you that a WM-DRM Upgrade is required and then ask for your consent before the WM- DRM Upgrade is c:ownloaded. WM-DRM Software built by third parties m 3Y do the same. If you deciine the ; Microsoft Product Use Rights 3-62 Microsoft Servers 49 upgrade, you will not be able to access content that requires the WM-DRM Upgrade; however, you will still be able to access unprotected content and Secure Content that does not require the upgrade. WM-DRM features that access the Internet, such as acquiring new licenses andlor performing a required WM-DRM Upgrade, can be switched off. When these features are switched off, you will still be able to play Secure Content if you have a valid license for such content already stored on your computer. (e) Windows Media Player. Some features of Windows Media Player automatically contact Microsoft computer systems if you use Windows Media Player or specific features of it: features that (A) check for new codecs if your Server does not have the correct ones for ontent you attempt to play (this feature may be switched off), and (B) check for new versions of Windows Media Player (this feature will operate only when you are using Windows Media Player). j. UpgradeslDowngrades. i. Software upgrades for a component of Microsoft BackOffice Server ("BackOffice Server"). If you upgrade to the Software from BackOffice Server, the remaining components may only be used in accordance with the terms of the Microsoft End User License Agreement that accompanied BackOffice Server. After an upgrade of BackOffice Server, all Software must run on the same Server on which BackOffice Server is instailed, unless the upgrade is an Enterprise Edition, in wrich case you may use the Software as stand-alone SG, ware in accordance with the terms of these product USe rights. ii. CAL downgrades. You may use Windows Server 2003 and Core CALs with an earlier version of the Software in accordance with the terms of these product use rights. Vou may use TS Device CALs, but d Ie to technical incompatibilities not TS User CALs, with earlier versions of the Software in accordance with the terms of these product use rights. k. Notice Regarding MPEG-4 Visual Decoders for Windows Media Player. USE OF THIS PRODUCT IN ANY MANNER THAT COMPLIES WITH THE MPEG-4 VISUAL STANDARD" IS PROHIBITED, EXCEPT FOR USE DiRECTLY RELATED TO (A) DATA OR INFORMATION (I) GENERATED BV AND OBTAINED WITHOUT CHARGE FROM A CONSUMER NOT THEREBY ENGAGED IN A BUSINESS ENTERPRISE, AND (II) FOR PERSONAL USE ONLY; AND (B) OTHER USES SPECIFICALLY AND SEPARATELY LICENSED 6 Y MPEG LA, L.L.C. MPEG LA, L.L.C., has contractually obligated Microsoft to provide this notice. 2. Windows Server 2003 External Connector. 2. Introduction. As used in this section, the "Software" refers to Microsoft Windows Server 2003, Standard Edition; or Microsoft Windows Server 2003, Enterprise Edition; or Microsoft Windows Server 2003, Datacenter Edition. Your use of the Software is governed by these praduct use rights and the product use rights for Microsoft Software provided with the Software ("EULA"). Capitalized terms used in this section have the same meaning as in the EUL.A except as otherwise provided in this section. Except as expressly set forth here, all terms and conditions of the EULA shall apply. b. Access to the Server Software. For each External Connector License you acquire, you may permit any number of External Users to access or use: a single copy of the Server Software for which the External Connector License is obtained, without the need to acquire a Windows CAL for each External User. c. Downgrades, Instead of using the External Connector License with the Server Software, you may use the External Connector License with an earlier version of the Server Software on a single Server, provided that such earlier version is no earlier than Windows NT version 4.0. 3. Windows Server 2003 Terminal Server External Connector ("TSEC"). a. Introduction. As used in this section, the "Software" refers to Microsoft Windows Server 2003, Standard Edition; or Microsoft Windows Server 2003, Enterprise Edition; or Microsoft Windows Server 2003, Datacenter Edition. Your use of the Software is governed by these product use rights and the product use rights provided with the Software ("EULA"). Capitalized terms used in this section have the same meaning as in the EULA except as otherwise provided in this section. Except as expressly set forth here, all terms and conditions of the EUL.A shall apply. b. Windows Sessions. For each TSEC License you acquire, you may permit any number of External Users to conduct Windows Sessions on a single copy of the Server Software for which the TSEC License is obtained, without the need to acquire a TS CAL for each External User. c. Downgrades. Due to technical incompatibilities the TSEC cannot be used with earlier versions of the Software. ,. ., ,. , ----, Micro2afi ~~rve'" 50 Microsoft Product Use Rights , 4. Windows Server 2003 Rights Management Server External Connector (URMSECU). a. Introduction. As used in this section. the "Software' refers to Microsoft Windows Server 2003, Enterprise Edition (or Microsoft Windows Server 2003, Datacenter Edition). Your use of the Software is governed by these product use rights and the product use rights provided with the Software ("EULA"). Capitalized terms used in this section have the same meaning as in the EULA except as otherwise provided in this section. Except as expressly set forth here, all terms and conditions of the EULA shall apply. RMS Components. For each RMSEC License tOU acquire, you may permit any number of External Users to access the RMS Components on a single copy of the Server Software for which the RMSEC License is obtained, without the need to acquire an RMS CAL for each External User. . 5. CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Windows Server 2003, Standard Edition and Windows Server 2003, Enterprise Edition. For each Windows Server 2003, TS or RMS CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the pr~duct use rights for your licensed copies of Windows So ver 2003, Standard Edition or Windows Server 2003, Enterprise Edition. T, Windows 2000 Server and Windows 2000 Advanced Server" 'Not available in the SBS suite. 1. Se' ver Use Rights. a. Installation-Server Software. For each license acquired, you may install one copy of the Server Software on a single Server. You may not separate component parts of the Server Software for use on more than one Server. b. Client Software. You may install the Client Software on any Devices. c. Processor Limits. You may use the Server Software for Microsoft Windows 2000 Server with up to four CPUs of the Server at any one time. You may use the Server Software for Microsoft Windows 2000 Acvanced Server with up to eight CPUs of the Server at one time. d. Windows 2000 Server CAL Requirements. You must acquire a separate CAL for each Device that is used by an "Authonticated User" or that uses 'Windows 2000 Server Services" regardless of what software you use. e. Mode of Deployment. Except when the Product is licensed within the SBS 2000 suite or when you are using Terminal Services, you may use CALs with the Server Software in either "Per Sear or "Per Server" mode. When the Product is iicensed within the SBS suite, or when you are using Terminal Services, you must use CALs with the Server Software in ~Per Seat" mode. >> See "Per Sec t or Per SeNer" in the Definitions and General Use Rights and Restrictions section for Servers. f. Terminal Servkes. In addition to a Windows 2000 Server CAL, you must acquire a Terminal Services CAL for each Device that uses "Terminal Services." You do not need a Terminal Services CAL to utilize Terminal Services for Devices running a licensed copy of Windows 2000 Professionai or Windows XP Professional. g. UAuthenticated User" is a user who directly or indirectly utilizes the Windows 2000 Server Integrated Sign-On Service or receives credentials from the Windows 2000 Directory Services. h. "Windows 2001J Server Services" Include File Services (accessing or managing files or disk storage), Printing Services (printing to a printer managed by the Product), Femote Access Service (accessing the Server from a remote location through a communications link, including a virtual private network), and Terminal Services. i. uTerminal Services" means (i) using the terminai services feature of the Server Software to enable Devices to use software residing on the Server, or (ii) using other software in conjunction with the Server Software to provide similar services. j. Mode of Deployment When using Termnal Services, the Product may not be used in Per Server mode. Microsoft Product Use Riahts 3-64 Microsoft SeNers 51 k. Update Features. If you choose to utilize the update features within the Product, it is necessary to use certain computer system, hardware, and software information to implement the features. By using these features. you explicitiy authorize Microsoft or its designated agent to access and utilize the necessary information for updating purposes. Microsoft may use this information solely to improve our products or to provide customized services or technologies to you. Microsoft may disclose this information to others, but not in a fprm that personally identifies you. I. Internet-Based Services Components. The Product contains components that enable and facilitate the use of certain Internet-based services. You acknowledge and agree that Microsoft may automatically check the version of the Product and/or its components that you are utilizing and may provide upgrades or fixes to the Product that will be automatically downloaded to a computer. m. Upgrades from BackOffice Server or SBS. When you install the Product. the Product replaces the component being upgraded, and you may use the Product in accordance with these use terms. The remaining components of BackOffice Server or SBS may only be used in accordance with the terms of the Microsoft End User License Agreement that accompanied the original product suite. After an upgrade of BackOffice Server, all products must run on the same Server on which the BackOffice Server is installed, unless the upgrade is an Enterprise or Commerce Edition. in which case you may use the Product as a stand-alone product in accordance with these use terms. After an upgrade of SBS, the Fax and Modem Software is no longer subject to the connection limitation for the SBS. 2. Internet Connector. For each Internet Connector license you have acquired, you have the right to permit any number of Devices that are used by Authenticated Users or that use Windows 2000 Server Services to access a single copy of Windows 2000 Server or Windows 2000 Advanced Server, without the need to acquire Windows 2000 Server CALs for each Device, provided such Devices are used only by internet Users. 3. Terminal Services Internet Connector. For each internet Connector license you have acquired, you have the right to permit any number of Devices to access the Terminal Services of a single copy of Windows 2000 Server or Windows 2000 Advanced Server, without the need to acquire Windows 2000 Server GALs and Terminal Server GALs. Windows 2000 Professional Licenses or Windows XP Professional Licenses for each Device, provided that such Devices are used only by Internet Users and a maximum of 200 Devices are connected to the Product and using Terminal Services at anyone time. 4. GAL Use RijJhts. Unless otherwise noted, defined terms have the same meaning as in product use rights for your licensed copies of Windows 2000 Server and Windows 2000 Advanced Server. For each Windows 2000 Server or Terminal Services CAL acquired, you may access or otherwise use the services or functionality of licensed Server Software in the manner provided for in such product use rights. 5. MultiLanguage Versions. Use of MultiLanguage Versions ("OS Components") is subject to the terms and conditions of the agreement ("EULA") under which you have iicensed the applicabie Microsoft operating system product ("OS Product") described below and these terms and conditions. if you do not have a valid EULA for any OS Product (Microsoft Windows 2000 Server, or Microsoft Windows 2000 Advanced Server), you are not authorized to install, copy or otherwise use the OS Components. Capitalized terms used and not otherwise defined here have the meanings assigned to them in the applicable OS Product EULA. To the extent that these terms conflict with terms in the appiicable OS Product EULA, these terms control solely with respect to the OS Components. General. The OS Components are provided to you by Microsoft to update, supplement, or replace existing functionality of the applicable OS Product. 6. Work at Home. > > While authenDcated access to a Windows 2000 Server otherwise requires a Windows 2000 Server CAL, accessing Terminal Services from a Home Device under a Wor!<-at-Home license does not require a Windows 2000 Server or Terminal Services GAL, however, in order for the corresponding At- War!< Device to access Terminal Services. the user under the Wor!<-at-Home license must be the primary user of an At-War!< Device which is licensed for both (i) a Windows 2000 CAL or BackOffice CAL and (Ii) either a Terminal Services CAL or a Windows 2000 Professional license. Wor!<-at-Home access rights for Terminal Services are licensed separately from the corresponding access rights for your "At-War!< Devices. n Subject to the limitations, requirements and restrictions identified below, for each Work at Home license acquired, you may permit one Work-at-Home Employee to access Microsoft Product Use Rights Micro~~%~rvers 52 . . or otherwise utilize the Terminal Services of the Microsoft Server Software identified on your License Confirmation (the "Server Software"), where such Server Software is licensed by you, via a direct or indirect connection between a single home Device ("Home Device") and the Server running the Server Software, soleiy for work- related purposes. "Work-at-Home Employee" means an empioyee of yours (or an independent contractor providing substantially full-time services to you of the type that are customarily performed by your employees) who is the primary user of an At-Work Device. "At-Work Device" means a Device provided by you from which the Terminal Services may be accessed or otherwise utilized. In place of the version of the Server Software identified on the License Confirmation (or equivalent evidence of license), the Work-at-Home Employee may access or otherwise utilize the Terminal Services of any later version of the Server Software he or she may properly access or otherwise utilize from his or her At-Work Device pursuant to a license or upgrade right (e.g., under Upgrade Advantage or an Enterprise Enrollment). You agree to maintain records adequate to permit identification of the number and identity of Work-at-Home Employees permitted to access or otherwise utilize the Terminal Services. In addition to the notice to user requirements described in your license agreement, you agree to notify each Work-at-Home Employee that accesses or otherwise utilizes the Terminal Services from a Home Device pursuant to these provisions that such access or utilization: (i) must be for work-related purposes; and (Ii) must be terminated immediately upon any event which causes him or her no longer to be a Work-at-Home Employee. Notwithstanding anything to the contrary in your license agreement. Work-at-Home licenses are not transferable under any circumstances without the prior written consent of Microsoft. U. Windows NT 4.0 Server 1. Server Use Rights. a. Installation-5erver Software. Installation-5erver Software. Several copies of the Server Software, each of which is compatibie with a different microprocessor architecture (such as the x86 architecture or various RISC architectures), may be provided. At any given time, you may install one copy of the Server Software for oniy one of those architectures on a single computer. Use of the Server Software. For each license acquired, you may use one copy of the Server Software on one Server. You must acquire a separate CAL for each unique Device which accesses or otherwise utilizes the services or functionality of the Server Software, whether you use the Client Software or any other software to do Microsoft Product Use Riahts 3-66 so, uniess otherw se provided. This is known as using the Server Software in Per Seat Mode. However, you may elect to use the Server Software (but not Microsoft Windows NT Sever, Terminal Server Edition) in Per Server Mode. Use of the Client Software. You may use the Client Software provided that you acquire CALs as required above, and subject to any limitations set forth below. b. Processor Limitation. The Server Software may be used by no more than four (4) processors of the Server at anyone time, unless you have Windows NT Server, Enterprise Edition, in which case the Server ~ oftware may be used by no more than eight (8) processo's of the Server at anyone time. c. Client Access. You need a separate CAL in order to access or otherwise utilize the following Windows NT Server basic network/application services, components or functionality: File Services (accessing or managing fries or disk storage), Printing Services (printing to a server managed by a Windows NT Server), Microsoft Message Queue Server (sending or receiving messages from Microsoft Message Queue Server). Microsoft Transaction Server (invoking comporent-based applications managed by Microsoft Transaction Server), Remote Access Service (accessing the sever from a remote location through a communications link), and Terminal Server Services (as defined below). Note: Remote Access Service includes the use of Inte,net Connection Services, including Internet Authentication Services (validation or transference of a I-emote access request) or Connection Point Services I remotely configuring the Microsoft Connection Mana~ler Client with new phone numbers or other data). You do not need a CAL for Windows NT Server to access or otherwise utilize any other Windows NT Server service~~ or functionality. d. Note on Microsoft FrontPage Software. Windows NT S,'rver contains Microsoft FrontPage software, which allows a single user to develop and maintain an InterneUintranet Web site. For each license acquired, you may install and use one copy of Microsoft FrontPage on a single Device. e. Microsoft Site Server Express. You may freely copy and distribute Microsoft Site Server Express for your use on any computer wrthin your organization. f. SOL Server Feature. Microsoft Servers 5.~ Windows NT Server, Enterprise Edition may -install an additional feature which is a restricted version of Microsoft SQL Server. If such feature is installed, you may use it solely in support of the Microsoft Message Queue Server directory functions. You do not need to acquire a separate CAL for Microsoft SQL Server to use the services of Microsoft Message Queue Server to access or otherwise utilize the services of the restricted Microsoft SQL Server feature of Microsoft Windows NT Server, Enterprise Edition. g. Windows NT Load Balancing Service (the "05 Component"). You may reproduce, install and use one copy of the OS Component on a single computer that is validly licensed . to run Windows NT Server, Enterprise Edition 4.0. If you have multiple validly licensed copies of Windows NT Server, Enterprise Edition 4.0, you may reproduce, install and use one copy of the OS Component on all of your computers that are validly licensed to run Windows NT Server, Enterprise Edition 4.0 provided that you use such additional copies of the OS Component in accordance with the terms and conditions set forth above. 2. Windows NT CAL Use Rights. Unless othelWise noted, defined terms have the same meaning as in the Server use rights section above. For each CAL acquired, you may access or otherwise use the services or functionality of licensed copies of Windows NT Server in the manner provided for in the Server use rights section. Each CAL for Microsoft Windows NT Server used in the Per Seat Mode may also be used to access or otherwise use the services or functionality of Microsoft Windows NT Server, Terminal Server Edition, provided that you compiy with the terms and conditions set forth in the Server Use Rights section above. )) For rights and restrictions on accessing or otherwise utilizing Terminal Services under a Work-at-Home license, see the Work-at-Home section above under Windows 2000 Server. V. Windows Small Business Server 2003 Standard Edition and Windows Small Business Server 2003 Premium Edition )) This Software does not transmit any personally identifiable informalion from your Server to Microsoft computer systems without your consent. There are technological measures in the Software that are designed to prevent unlicensed use of the Software. We will use those measures to help ensure you have a valid Volume License Product Key for the Software. If you are not using a valid Volume License Product Key for the Software, you are not allowed to install the Software or future Software updates. Microsoft wi/I not collect any personally identifiable information from your Server or any device dUring this process without your consent 1. Server Use Rights. For purposes of clarification, the definition of Software includes all the technologies included in Windows Small Business Server 2003, including Windows Server for Small Business Server and the following other technoiogies: Exchange Server, Outlook, Health Monitor, Shared Fax Service, and ActiveSync. For Windows Small Business Server 2003, Premium Edition, the definition of Software also includes the SQL Server, Firewall Server, and BizTalk Server technologies. a, Installation, Server Software. For each license acquired, you may install one copy of Server Software on a single Server. Such Server may not be accessed by more than 75 Users or Devices (inclusive of any indirect connections made through software or hardware that pools or aggregates connections). With respect to Windows Small Business Server 2003, Premium Edition, the SQL Server portion of the Server Software may not be accessed by more than 75 internal Users or Devices (inclusive of any indirect connections made through software or hardware that pools or aggregates connections). Separate portions of the Server Software may not be used on more than one Server. You may not install another copy of the Server Software on the same Server (whether in a separate partition, by using server emulation software, or otherwise). An additional license is required if you install or run a copy of the Server Software on a different Server (for example, a Server employed for backup or fail-over support). However, regardless of the number of licenses you acquire for the Software you may not install or run the Server Software on another Server within the same domain, except for the limited period of time necessary to migrate data from one server to another. b. Processor Rights. You may use Server Software with up to two CPUs of the Server at anyone time. c. Installation, Device Software. Provided that you have a dedicated SBS CAL (defined in Section d below) for each User or Device: . You may install and use the Device Software (except for the ActiveSync and Outlook portions of the Device Software) on up to 75 Devices Microsoft Product Use Rights ILl,"""ri",,,,,,,,,\ tt:::..,,.../i..hl (1"/,, ..,,,,,,,\ Mic~o#t;l,rvers 54 solely for use in conjunction with the Server Software; . You may install and use up to 75 copies of the ActiveSync portion of the Device Software on computers that exchange data and software with Devices running a validly licensed copy of Microsoft Windows CE (including without limitation Devices running Microsoft Pocket PC Software and Microsoft Smartphone Software); and . You may install and use up to a total of 75 copies of (i) the Outlook portion of the Software and/or, provided that you have obtained a valid license for such version, (ii) Microsoft Outlook 2002 or any prior version. d. CALs. The Software licensing model consists of the Server Software license and incremental CALs, so that the total cost for licensing the Software scales with usage. . i. Windows Small Business Server CAL ("SBS CALs") Requirements. In addition to the license for the Server Software, you must acquire an SBS CAL for each individual person ("User") or Device that accesses or uses the Server Software, whether directly or through a Multiplexing Service (defined below). However, you do not need to acquire an SSS CAL for any User or Device that accesses the Server Software solely through the Internet and is not authenticated or otherwise individually distinguished by the Server Software or a Multiplexing Service (for example, by browsing a public website anonymously). A "Multiplexing Service" is a software application or service accessing or using the Server Software at the request of or on behalf of a User or Device. ii. Types of SBS CALs. Two different types of SSS CALs are available to you: "Device" and .User." Each SSS Device CAL permits one Device (used by any User) to access or use the Server Software. Each SSS User CAL penmits one User (using any Device) to access or use the Server Software. You may use a mix of up to a total of 75 SSS Device CALs and SSS User CALs simultaneously with the Server Software. A separate SSS CAL is required for each Device or User that accesses or uses Server Software on any of your Servers. e. Premium Services. Microsoft may subsequently create new software functionality ("Premium Services") that you may wish to use with this version of the Software. To make these Premium Services avaiiable to you for use with this version of the Software, Microsoft may provide them under additional license terms and may charge addilional access license fees for you to install and use them, if you choose. f. Redistributabl" Code. Certain portions of the Software, as described in this section, are provided to you with additional license rights. These additional license rights are conditioned upon your compliance with the distribution requirements and license restrictions described in Section g below. i. Sample Code. Microsoft grants you the right to: (a) use and modify the so"rce code version of those portions of the Software identified as "Samples" in the samples directory or elsewhere in the Software ("Sample Code") for the sole purposes of designing, developing, and testing your softNare product(s), and (b) a limited, nonexclusive, royalty-free right to reproduce and distribute the Sample Code, along with any modifications thereof, in object code form only. ii. Redistributable Code. Microsoft grants you a nonexclusive, royalty-free right to reproduce and distribute the obj"ct code fonm of any portion of the Software listed in the REDIST.TXT files ("Redistributable Code"). g. Distribution Requirements and Other License rights and Limitations. If you choose to exercise your rights under Section f above, any redistribution by you is subjE'ct to your compliance with this Section g. i. Redistribution Requirements. If you choose to redistribute Sample Code (including any modifications thereto), or Redistributable Code (collectively, the "Redistnbutables") as described in Section e above, you agree: (a) to distribute the Redistributables only in object code form and in conjunction with and as a part of a software application product developed by you that adds significant and primary functionality to the Redistributables ("Licensee Software"); (b) that the Redistributables only operate in conjunction with Microsoft Windows platfomns; (c) that if the Licensee Software is distributed beyond your premises or externally your or[lanization, to distribute the Licensee Software containin!! the Redistributables pursuant to an end user license .greement (which may be "break-the- seal", "click-wrap" or signed), with temns no less protective than those contained in these product use rights and your license agreement; (d) not to use Microsoft's name, logo, or trademarks to market the Licensee Software; (e) to display your own valid copyright notice which shall be sufficient to protect Microsoft's Microsoft Product Use Rights 3-68 Microsoft Servers 55 copyright in the Software; (f) not to remove or obscure any copyright, trademark or patent notices that appear on the Software as delivered to you; (g) to indemnify, hold harmless, and defend Microsoft from and against any claims or lawsuits, including attorney's fees, that arise or result from the use or distribution of the Licensee Software; (h) to otherwise comply with the terms of these product use rights; and (i) that Microsoft reserves all rights not expressly granted. ii. No Further Redistribution. You also agree not to permit further distribution of the Redistributables by your end users except you may permit further redistribution of the Redistributables by your distributors to your end-user customers if your distributors only distribute the Redistributables in conjunction with, and as part of, the Licensee Software, you comply with all other terms of these product use rights, and your distributors comply with all restrictions of these product use rights and your license agreement that are applicable to you. iii. Additional Redistribution Requirements. If you use the Redistributables, then in addition to your compliance with the applicable distribution requirements described for the Redistributables, the following also applies, Your license rights to the Redistributables are conditioned upon your not (A) creating derivative works of the Redistributables in any manner that would cause the Redistributables in whole or in part to become subject to any of the terms of an Excluded License; or (B) distributing the Redistributables (or derivative works thereof) in any manner that would cause the Redistributables to become subject to any of the terms of an Excluded License. An "Excluded License" is any license that requires as a condition of use, modification andlor distribution of software subject to the Excluded License, that such software or other software combined andlor distributed with such software be (i) disclosed or distributed in source code form; (ii) licensed for the purpose of making derivative works; or (iii) redistributable at no charge. iv. SOL Server Redistributables. If the Software is Microsoft Windows Small Business Server 2003, Premium Edition and you choose to redistribute the Microsoft SOL Server Desktop Engine andlor the files listed in the REDIST.TXT file of SOL Server portion of the Software ("SOL Redistributables"), in addition to the restrictions in subsections (i)-(iii) of this Section g, you also agree: (i) that Licensee Software shall not substantially duplicate the capabilities of Microsoft Access or, in the reasonable opinion of Microsoft, compete with same; and (Ii) that unless Licensee Software requires your customers to license Microsoft Access in order to operate, you shall not reproduce or use the SOL Redistributables for commercial distribution in conjunction with a general purpose word processing, spreadsheet or database management software product, or an integrated work or product suite whose components include a general purpose word processing, spreadsheet, or database management software product except for the exclusive use of importing data to the various formats supported by Microsoft Access. Note: A product that includes limited word processing, spreadsheet or database components along with other components which provide significant and primary value, such as an accounting product with limited spreadsheet capability, is not considered to be a "general purpose" product. h. Microsoft Windows Small Business Server 2003, Premium Edition. For Windows Small Business Server 2003, Premium Edition, the following additional provisions apply: i. SOL Server. You may only use the Management Tools, Books-Online, and Development Tools included in the SOL Server portion of the Server Software for internal use in conjunction with your use of the SOL Server portion of the Server Software. ii. BizTalk Server. The BizTalk Server portion of the Server Software may not be used to connect to more than 3 external organizations. iii. Microsoft Office FrontPage 2003. You may install and use the Microsoft Office FrontPage 2003 software provided with the Software in accordance with the terms and conditions set forth in the product use rights for such software in the Applications section of this document. i. Windows Small Business Server 2003. Conflicting Terms. The terms and conditions set forth in these product use rights for Microsoft Windows Small Business Server 2003 supercede the terms and conditions contained in any license for the Server Software and Device Software portions of the Software which may be included in the Software, except for the product use rights applicable to Microsoft Office FrontPage 2003 software. j. Report-Writing Runtime Software Limitations. The Software may contain report-writing runtime software ("Runtime Software"). Other than use with the Software, you may not use the Runtime Software with any other software application nor use the Runtime Software as part of any process or system that is used to automatically deliver, share or distribute documents or other work created using the Runtime Software. k. Data Storage. The Server Software contains portions that use the data storage technology known as Microsoft SOL Server Desktop Engine ("MSDE"). All copies and 11I......r...:...........\ 1r:::~.....I;_""1 11../.. ",..,,,..,, Mjcro~7i ~~ers 56 Microsoft Product Use Rights . instances of MSDE contained in or installed by those . portions of the Server Software, excluding the SQL Redistributables, may be used only by those portions of the Server Software. Any such copy or instance of MSDE may not be accessed or used for any other purpose. For example, applications may not be created or run on the Server Software if they access or use the services or functionality of any copy or instance of MSDE contained in or installed by those portions of the Software. In addition, any MSDE network library files that are disabled at the time you first install the Server Software may not be re-enabled. . I. Automatic Internet-Based Services. The Software features described below are enabled by default to connect via the Internet to Microsoft computer systems automatically, without separate notice to you. You consent to the operation of these features, unless you choose to switch them off or not use them. Microsoft does not obtain personally identifiable information through any of these features. For more information about these features, please see your Software documentation or the Microsoft online support site. i. Windows Update Features. Under the Software's default configuration, if you connect a device to your Server and the correct device driver is not available on your Server, then Windows Update features on your Server (including Device Manager and the Plug & Play CDM Module) automatically attempt to check Microsoft computer systems via the Internet for the correct device driver. Having this happen automatically makes Plug- and-Play installation of new hardware a better experience for customers. You may switch off Windows Update's automatic driver checking feature. Ii. Web Content Features. Under the Software's default configuration, if you are connected to the Internet, several features of the Software are enabled by default to retrieve content from Microsoft computer systems and display it to you. When you activate such a feature, it uses standard Internet protocols, which transmit the type of operating system, browser and language code of your Server to the Microsoft computer system so that the content can be viewed properly from your Server. These features only operate when you activate them, and you may choose to switch them off or not use them. Examples of these features include Windows Catalog, Search Assistant, and the Headlines and Search features of Help and Support Center. iii. Digital Certificates. Use of certificates based on the X.5ag standard is an important security feature of the Software. Certain functions of the X.5ag implementation (for example, certificate revocation checking and certificate path building) connect via the Internet to computer systems belonging to Microsoft and other digital certificate authorities to check the validity of digital certificates that ) ou receive from third parties during certain Internet-based operations (for example, communications secured with SSL or IPsec, mail secured with S/MIME, and smartcard authentication). In accordance with the X.5ag standard, the Software automatically retrieves user certificates and certificate revocation lists Wlen you attempt to access certificate protected content. Additionally, the Software's Auto Root Update feature will occasionally update the list of trusted certificate authorities. Auto Root Update is an optionai feature; you can un install it if you do not desire it to function. The ottler security operations based on the X.5ag standard can be prevented from operating by blocking Server Internet access. iv. Windows Media Digital Rights Management Content providers are using the digital rights management technology for Windows Media contained in this Software ("WM-DRM") to protect the integrity of their content ("Secure Content") so that their intellectual property, including copyright. in such content is not misappropriated. Portions of this Software and third party applications such as media players use WM-DRM to play Secure Content ("WM-DRM Software"). If the WM-DRM Software's security has been compromised, owners of Secure Content '''Secure Content Owners") may request that Microsoft revoke the WM-DRM Software's right to copy, display andlor play Secure Content. Revocation does not alter the WM-DRM Software's ability to play unprotected content. A list of revoked WM-DRM Software is sent to your computer whenever you download a license for Secure Content from the Internet. Microsoft may, in conjunction with such license, also download revocation lists onto your computer on behalf of Secure Content Owners. Secure Content Owners may also require you to upgrade some of the WM-DRM components in tris Software ("WM-DRM Upgrades") before accessing their content. When you attempt to play such content, WM.DRM Software built by Microsoft will notify you that a WM-DRM Upgrade is required and then ask for your consent before the WM-DRM Upgrade is downloaded. WM-DRM Software built by third parties may do the same. If you decline the upgrade, you will not be able to access content that requires the WM-DRM Upgrade; however, you will still be able to access unprotected content and Secure Content that does not require the upgrade. WM-DRM features that access the Internet, such as acquiring new licenses and/or performing a required WM-DRM Upgrade, can be switched off. Whel these features are switched off, you will still be able to play Secure Content if you have a valid license for such content already stored on your computer. v. Windows Media Player, Some features of Windows Media Player automatically contact Microsoft computer Microsoft Product Use Rights 3-70 Microsoft Servers 57 systems if you use Windows Media Player or specific features of it: features that (A) check for new codecs if your Server does not have the correct ones for content you attempt to play (this feature may be switched off), and (B) check for new versions of Windows Media Player (this feature will operate only when you are using Windows Media Player). m. Notice Regarding MPEG-4 VISUAL DECODERS FOR WINDOWS MEDIA PLAYER. USE OF THIS PRODUCT IN ANY MANNER THAT COMPLIES WITH THE MPEG-4 ViSUAL STANDARD IS PROHIBITED, EXCEPT FOR USE DIRECTLY RELATED TO (A) DATA OR INFORMATION (i) GENERATED BY AND OBTAINED WITHOUT CHARGE FROM A CONSUMER NOT THEREBY ENGAGED IN A BUSINESS ENTERPRISE, AND (ii) FOR PERSONAL USE ONLY; AND (B) OTHER USES SPECIFICALLY AND SEPARATELY LICENSED BY MPEG LA, L.L.C. MPEG LA, L.L.C., has contractually obligated Microsoft to provide this notice. 2. Windows Small Business Server 2003 CAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Window Small Business Server 2003. For each CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the product use rights for your licensed copies of Window Small Business Server 2003. W. Windows Server 2003 for Small Business Server > > This Software does not transmit any personally identifiable infonnation from your Server to Microsoft computer systems without your consent. 1. Server Use Rights. a. Installation, Server Software. For each license acquired, you may install one copy of Server Software on a single Server. Such Server may not be accessed by more than 15 Users or Devices (inclusive of any indirect connections made through software or hardware that pools or aggregates connections). Separate component parts of the Server Software may not be used on more than one Server. You may not install another copy of the Server Software on the same Server (whether in a separate partition, by using server emulation software, or otherwise). An additional license is required if you install or run a copy of the Server Software on a different Server (for example, a Server empioyed for backup or fail-over support). However, regardless of the number of licenses you acquire for the Software you may not install or run the Server Software on another Server within the same domain, except for the limited period of time necessary to migrate data from one server to another. b. Processor Rights. You may use the Software with up to two CPUs of the Server at anyone time c. Installation, Device Software. You may install and use the Device Software on up to 15 Devices solely to access or use the Server Software, provided that you have a dedicated Window CAL (defined in Section f below) for each User or Device. d. Volume License Product Key Validation. There are technological measures in the Software that are designed to prevent unlicensed use of the Software. We will use those measures to help ensure you have a valid Volume License Product Key for the Software. If you are not using a valid Volume License Product Key for the Software, you are not allowed to install the Software or future Software updates. Microsoft will not collect any personally identifiable information from your Server or any device during this process without your consent e. CALs. The Software licensing model consists of an operating system license and incremental GALs, so that the total cost for iicensing the Software scales with usage. Several CAL types and licensing modes are available to suit your individual needs. i. Windows Server 2003 CAL for Small Business Server ("Windows CAL") Requirements. In addition to the license for the Server Software, you must acquire either a Windows Server 2003 or Core CAL for each User or Device that accesses or uses 1he Server Software. whether directly or through a Multiplexing Service (defined below). For example, a Windows GAL is required for each User or Device that uses any of the following services of the Server Software: . authentication services (when user or application credentials are exchanged between the Server Software and a User or Device), . file services (accessing or managing files or disk storage) , . printing services (printing to a printer managed by the Server Software), or . remote access service (accessing the Server from a remote location through a communications link, including a virtuai private network) . Microsoft Product Use Rights (Americas) (Enalish) (Julv 20031 MicroSblt ~srvers 58 However, you do not need to acquire a Windows or Care CAL for any User or Device that accesses the Server Software solely through the Internet and is not authenticated or otherwise individually distinguished by the Server Software or a Multiplexing Service (for example, by browsing a public website anonymously). A "Multipiexing Service" is a software application or service accessing or using the Server Software at the request of or on behalf of a User or Device. ii. Types of Windows GALs. Two different types of Windows CALs are available to you: "Device" and "User." Each Windows Device CAL permits one Device (used by any User) to access or use the Server Software. Each Windows User CAL penmits one User (using any Device) to access or use the Server Software. You may use a mix of up to a total of 15 Windows Device CALs and Windows User CALs simultaneousiy with the Server Software. iii. Windows GAL Licensing Modes. At your option, you may use Windows CALs with the Server Software in either "Per Device or Per User" or "Per Server" mode. (i) In Per Device or Per User mode, a separate Windows CAL is required for each Device or User that accesses or uses Server Software on any of your Servers. If you choose Per Device or Per User mode, the choice is permanent. (ii) In Per Server mode, the maximum number of Devices and Users that ma"y simultaneously access or use Server Software installed on a particular SeNer equals the number of Windows CALs (of either type) that you acquire and designate for use exclusively with that SeNer. You have the one-time right to change your use of the Server Software from Per Server mode to Per Device or Per User mode. If you do so, you may apply the same number of Windows CALs you acquired for use in Per Server mode in Per Device or Per User mode instead. iv. Terminal Server GAL ("TS GAL") Requirements. in addition to a Windows CAL, if you wish to conduct a Windows Session, you must acquire a TS CAL for each User or Device. A "Windows Session" means a session during which Server Software hosts a graphicai user interface on a Device (whether via the Tenminal Services component of the Server Software or via other technology). v. Types of TS GALs; TS CAL Licensing Modes. Similar to Windows CALs, two different TS CALs are available to you: "Device" and "User." Each TS Device CAL permits one Device (used by any User) to conduct Windows Sessions on any of your Servers. Each TS User CAL permits one User (using any Device) to conduct Windows Sessions on any of your Servers. You may use a mix of TS Device CALs and TS User CALs simultaneously with the Server Software. In Per Device or Per User mode a separate TS CAL is required for each Device or User that accesses or uses the Server Software on any of your servers. Windows Sessions are not allowed in Per Server mode. vi. Additional GAL Requirements. Administration. You do not need a TS GAL when attaching to or mirroring the single Console Session. The "Console Session" is the Windows Session that is conducted through the designated primary keyboard and display device (or similar peripherals). f. Premium Services. We may subsequently create new software functionality ("Premium Services") that you may wish to use with this version of the Software. To make these Premium Services available to you for use with this version of the Software, we may provide them under additional license terms and may charge additional access license fees for you to install and use them, if you choose. g. Description of Other Rights and Limitations. i. Component Data Storage. The 32-bit version of the Software contains components that use the data storage technology known as Microsoft SQL Server Desktop Engine ("MSDE"). All copies and instances of MSDE contained in or installed by those Software components may be used only by those Software components. Any such copy or instance of MSDE may not be accessed or used for any other purpose. For example, applications may not be created or run on the Software if they access or use the services or functionality of any copy or instance of MSDE contained in or installed by those Software components. In addition, any MSDE network library files that are disabled at the time you first install the Software may not be re- enabied. ii. Automatic Internet-Based Services. The Software features described below are enabled by default to connect via the Internet to Microsoft computer systems automatically, without separate notice to you. You consent to the operation of these features, unless you choose to switch them off or not use them. Microsoft Product Use RiCJhts 3-72 Microsoft Servers 59 Microsoft does not obtain personally identifiable information through any of these features. For more information about these features, please see your Software documentation or the Microsoft online support site. (a) Windows Update Features. Under the Software's default configuration, if you connect a device to your Server and the correct device driver is not available on your Server, then Windows Update features on your Server (including Device Manager and the Plug & Play CDM Module) automatically attempt to check Microsoft computer systems via the Internet for the correct device driver. Having this happen automatically makes Plug-and-Play installation of new hardware a better experience for customers. You may switch off Windows Update's automatic driver checking feature. (b) Web Cdntent Features. Under the Software's default configuration, if you are connected to the Internet. several features of the Software are enabled by default to retrieve content from Microsoft computer systems and display it to you. When you activate such a feature, it uses standard Internet protocols, which transmit the type of operating system. browser and language code of your Server to the Microsoft computer system so that the content can be viewed properly from your Server. These features only operate when you activate them, and you may choose to switch them off or not use them. Examples of these features include Windows Catalog. Search Assistant, and the Head!ines and Search features of Help and Support Center. (c) Digital Certificates. Use of certificates based on the X.509 standard is an important security feature of the Software. Certain functions of the X.509 implementation (for example, certificate revocation checking and certificate path building)' connect via the I nternet to computer systems belonging to Microsoft and other digital certificate authorities to check the validity of digital certificates that you receive from third parties during certain Internet-based operations (for example, communications secured with SSL or IPsec, mail secured with SIMIME, and smartcard authentication). In accordance with the X.509 standard, the Software automatically retrieves user certificates and certificate revocation lists when you attempt to access certificate protected content. Additionally, the Software's Auto Root Update feature will occasionally update the list of trusted certificate authorities. Auto Root Update is an optional feature; you can uninstail it if you do not desire it to function. The other security operations based on the X.509 standand can be prevented from operating by blocking Server Internet access. (d) Windows Media Digital Rights Management. Content providers are using the digital rights management technology for Windows Media contained in Windows Server 2003, Standard Edition and Windows Server 2003 Enterprise Edition ("WM-DRM") to protect the integrity of their content ("Secure Content") so that their intellectual property, including copyright, in such content is not misappropriated. Portions of such Software and third party applications such as media piayers use WM-DRM to play Secure Content ("WM-DRM Software"). if the WM-DRM Software's security has been compromised, owners of Secure Content ("Secure Content Owners") may request that Microsoft revoke the WM-DRM Software's right to copy, display andlor play Secure Content. Revocation does not alter the WM-DRM Software's ability to play unprotected content. A list of revoked WM-DRM Software is sent to your computer whenever you download a license for Secure Content from the Internet. Microsoft may, in conjunction with such license, also download revocation lists onto your computer on behalf of Secure Content Owners. Secure Content Owners may also require you to upgrade some of the WM-DRM components in this Software ("WM-DRM Upgrades") before accessing their content. When you attempt to play such content. WM-DRM Software built by Microsoft will notify you that a WM-DRM Upgrade is required and then ask for your consent before the WM- DRM Upgrade is downloaded. WM-DRM Software built by third parties may do the same. If you decline the upgrade, you will not be able to access content that requires the WM-DRM Upgrade; however, you will still be able to access unprotected content and Secure Content that does not require the upgrade. WM-DRM features that access the Internet, such as acquiring new licenses andlor performing a required WM-DRM Upgrade, can be switched off. When these features are switched off, you wiil still be able to play Secure Content if you have a valid license for such content already stored on your computer. (e) Windows Media Player. Some features of Windows Media Player automaticaily contact Microsoft computer systems if you use Windows Media Player or specific features of it: features that (A) check for new codecs if your Server does not have the correct ones for content you attempt to play (this feature may be switched off), and (B) check for new versions of Windows Media Player (this feature will operate only when you are using Windows Media Player). h. UpgradeslDowngrades. i. Software upgrades for a component of Microsoft BackOffice Server ("BackDffice Server"). If you upgrade to the Software from BackOffice Server, Microsoft Product Use Rights 3-7::1 Microsoft ~eNers 60 the remaining components may only be used in accordance with the terms of the Microsoft End User License Agreement that accompanied BackOffice Server. After an upgrade of BackOffice Server, ail Software must run on the same Server on which BackOffice Server is instailed, unless the upgrade is an Enterprise Edition, in which case you may use the Software as stand-alone software in accordance with the terms of these product use rights. II. GAL downgrades. You may use Windows Server 2003 with an eariier version of the Software in accordance with the terms of these product use rights. You may use TS Device CALs, but due to technical incompatibilities not TS User CALs, with earlier versions of the Software in accordance with the terms of these product use rights. I. Notice Regarding MPEG-4 VISUAL DECODERS FOR WINDOWS MEDIA PLAYER. USE OF THIS PRODUCT IN ANY MANNER THAT COMPLIES WITH THE MPEG-4 VISUAL STANDARD IS PROHIBITED, EXCEPT FOR USE DIRECTLY RELATED TO (A) DATA OR INFORMATION (I) GENERATED BY AND OBTAINED WITHOUT CHARGE FROM 'A CONSUMER NOT THEREBY ENGAGED IN A BUSINESS ENTERPRISE, AND (II) FOR PERSONAL USE ONLY; AND (B) OTHER USES SPEGIFICALL Y AND SEPARATELY LICENSED BY MPEG LA, L.L.C. MPEG LA, L.L.C.. has contractuaily obligated Microsoft to provide this notice. 3. GAL Use Rights. Unless otherwise noted, defined terms have the same meaning as in the product use rights for your licensed copies of Windows Server 2003 for Smail Business Server. For each Windows Server 2003 or TS CAL acquired, you may access or otherwise use the services or functionality of the Server Software in the manner provided for in the product use rights for your licensed copies of Windows Server 2003 for Small Business Server. . X. Services for Unix 3.0 1. Installation-Server Software. For each license acquired, you may install and use one copy of the Server Software on a single Server. You may not separate component parts of the Server Software for use on more than one Server. 2. Installation on Windows NT Workstation, Windows 2000 Professional, or Windows XP Professional. If you instail the Server Software on a Device that is running Microsoft Windows NT Workstation (with Windows NT 4.0 Service Pack 6a or above), Windows 2000 Professionai, or Windows XP Professional, you may permit a maximum of ten (10) Devices to simultaneously access or use the Server Software. A Device which "visits" the Server Software is accessing or using the Server Software. For purposes of the previous sentence, a "visit" means a series of one or more requests from a Device to the Server Software. A visit ends when such Device does not make any additional requests of the Server Software for a period of five (5) minutes or more. The ten (10) use maximum includes any indirect connections made through software or hardware which pools or aggregates connections. 3. Installation on Microsoft Windows Server Products. If you instail the Server Software on a Server that is running Microsoft Windows Server 2003, Standard Edition, Microsoft Windows Server 2003, Enterprise Edition, Microsoft Windows Server 2003, Datacenter Edition ("Windows Server 2003 Products"), Microsoft Windows NT Server (with Windows NT 4.0 Service Pack 6a or above), Windows 2000 Server, Windows 2000 Advanced Server, Windows 2000 Datacenter Server (collectively with the Windows Server 2003 Products, "Microsoft Server Products"), you must use the Server Software in the same "mode" as the Microsoft Server Product on such Server is being used. If it is used in "Per Sear or "Per Device or Per Usern mode, you must acquire a Windows Server Product client access license for each Device that accesses or otherwise uses the services of the Server Software, or with the Windows Server 2003 Products, for each individual person who access or otherwise uses the selVices of the Server Software ("User"). If it is used in "Per Server Mode," the maximum number of Devices or Users that may access or otherwise utilize the services of the Server Software at a given point in time is equal to the number of client access licenses that you have acquired and designated for use exclusively with the Device which is running the Server Software. Devices to which a client access license has been designated may also access Server Software running in the Per Server Mode, provided the additional access is within that Device's maximum licensed capacity. if you have already acquired a client access license to access or otherwise utilize the basic services of the Microsoft Server Product, that client access license gives you the right to access and utilize the Server Software. 4. Server for NFS Autihentication. You may install and use the "Server for NFS Authentication" portion of the Server Software on any Device which is running a validly licensed copy of Microsoft Server Products and acting as a primary or backup domain controller, for the purpose of enabling user authentication and access to the services of the Server Software. Microsoft Product Use Rights 3-74 M;crosoft Servers 61 5. Server for NIS. You may install and use the "Server for NiS" portion of the Server Software on any Device which is running a validly licensed copy of Microsoft Windows 2000 Server, Microsoft Windows 2000 Advanced Server, Windows Server 2003, Standard Edition or Windows Server 2003, Enterprise Edition, acting as a domain controller, soiely for the purpose of enabiing a Windows 2000-based or Windows 2003 based domain-controller computer to be a master NIS server, or a subordinate NIS server to another Windows Server running Server for NIS. 6. Password Synchronization You may install and use the "Password Synchronization" portion of the Software ("Password Synchronization Component") on any Device which is running a validly licensed copy of UNiX operating system software, for the purpose of enabling the compatibility of such UNIX operating system with the Microsoft Server Products password synchronization service. You may modify the source code for this Password Synchronization Component to port it to any version of a UNIX operating system. You may also use, reproduce, and distribute (and sublicense these rights to third parties, including the right to sublicense to further third parties) the UNIX Synchronization Service, as modified ("Distributables"). in source or object code forms, solely for the purpose of receiving password updates to and from Devices running Microsoft Server Products, provided that (i) you do not use Microsoft's name, logo, or trademarks to advertise, market or promote your Distributables without the express written permission of Microsoft; (ii) you include a valid copyright notice on your Distributables; (iii) you agree to indemnify, hold hanmiess, and defend Microsoft from and against any claims or lawsuits, including attorney's fees, that arise or result from the use or distribution of your Distributables. 7, Com ponent Products. The Software includes certain components licensed to Microsoft from third parties (each, a "Component Product"), A Component Product may contain its own license agreement or copyright notice (each, a "Component Agreement"). The Component Agreements are located on the Software media at IPUBSICPYRIGHT.TXT and IPUBSIGPL.TXT. In the event of inconsistencies between this Section or your license agreement and any Component Agreement, the terms of the Component Agreement control solely with respect to that Component Product. Microsoft Product Use Rights Micro~o;?a,rvers 62 ,,,__-,___, I~__"_r....\ , I . ............, Mjt~oi;oft Developer Tools ,I >> For Project 2000 templates, see the Applications section. For MapPoint 2002 Runtime Version and TechNet Online and TechNet Plus (single user license), see sections II - IV. I. This Section I applies to the following products: 1. BizTalk Server 2002 Developer '::dition L Commerce Server 2002 Developer Edition 3. Microsoft Office XP Developer 2002 ("MOD") 4. Microsoft Developer Network Subscription ("MSDN") 5. SaL Server 2000 Developer Edition 6. Visual FoxPro7.0 and 8.0 7. Visual SourceSafe 6.0 8. Visual Studio.NET 2002 and 2003 (Enterprise Architect, Enterprise Developer, Professional) 9. Web Enhancements Software Development Kit E 'cept as otherwise noted, for all products listed above in thl 'section I, these rights and restrictions apply: A. General License Grants. 1. .Ilstallation and Use. For each license acquired, you must designate one individual within your organization (the "Designated Use(") who will have the personal, nonexclusive license to m.le and use copies of the Software for the purpose of designing, developing, testing and demonstrating your software products. The Designated User may install copies of the Software on any number of computers provided that the Designated User is the only person who uses each such copy of the Software. The Software may be installed on network servers for use by multiple Designated Users, so long as you have acquired a separate license for each such Designated User. 2. Documentation. You may make and use an unlimited number of copies of the documentation solely for internal use by any number of end users so long as: i. Such end users are persons who are generally granted access to your intemal network; and ii. Such copies are used only for internal purposes and are not to be republished or distributed (either in hard copy or electronic form) bayond your premises. 3. Microsoft Server Software. a. General. The Software may include certain Microsoft server products. Any Microsoft server product provided as part of the Software you acquire with a Microsoft Developer Tool product (each, a "Server Product") is provided for your use solely in conjunction with the design, development, testing and demonstration of software products created by you that run in conjunction with the Server Product and Server Products may not be used in a Jive production environment. Your use of the Server Products is subject to these product use rights, the terms of which supercede those of any end user license agreements contained in any Server Product. The Server Products consist of software programs that provide services or functionality on a computer capable of running the server software ("Server Software"; the computer running the Server Software shall be referred to as the "Server.") and may also include software programs that allow an electronic device (a "Device") to access or utilize the services or functionality provided by the Server Software ("Device Software"). b. Installation and Grant of License. i. Server Software. Solely for purposes of designing, developing, testing, and demonstrating your software product(s) that run in conjunction with the Server Product (any such software product, a "Licensee Server Application"): A. Microsoft grants you a limited, nonexclusive, royalty-free license to make, use and install the Server Software for any individual Server Product on any number of Servers. All portion; of anyone copy of Server Software, however, must be installed and used on the same Server. B. Any number of end users (i.e., in addition to the Designated User) may access and use the Server Software without the necessity of acquiring additional licenses for the Software provided that such access is solely for purposes of testing Licensee Server Applications. ii. Device Software. Except as otherwise provided, if Device Software is included with the Server Product, Microsoft grants you a limited, nonexclusive, royalty-free license to make, use and install the Device Software on any number of Devices for use by others, provided that such use is Microsoft Product Use Riqhts 3-76 Microsoft Developer Tools 63 solely in conjunction with the design, development. testing, and demonstration of Licensee Server Applications. c. Additional Rights and Limitations for Specific Server Software. Certain Software may contain Server Products that are subject to the following additional rights or limitations: i. All Server Products. A. For purposes of this Agreement, "testing" does not include staging in a production environment such as loading content on a Server prior to production use. B. The use of the Server Products is limited to development use only (as described in this Section of these product use rights) and the deployment of Licensee Server Applications in a production or live environment may require additional licensing for use of and/or access to other Microsoft or third party software products. ii. Windows NT Server, Windows 2000 Server, and Windows .NET Server. The Server Software may be used by no more than four (4) processors of the Server at anyone time. You may permit up to 200 anonymous concurrent connections to access your software applications using the Termina! SeNices component of Windows 2000 Server or Windows .Net Server Software, so long as: (a) such use is limited to the demonstration of your software applications over the Internet for evaluation purposes, and (b) it does not utilize production data. iii. Windows Server 2003. A. Volume License Product Key Validation. There are authentication processes in the Server Software that are designed to prevent unlicensed use of the Server Software. We will use those processes to help ensure you have a valid Volume License Product Key for the SeNer Software. If you are not using a valid Volume License Product Key for the Server Software, you are not allowed to install the Server Software or future Server Software updates. Microsoft will not collect any personally identifiable infonmation from your Server during those processes. B. other Licenses. Your use of software applications Installed on the Server, accessed through the Server, or providing application-sharing functionality may require additional licenses. Please consult the license agreement accompanying such software. C. Component Data Storage. The Server Software contains components that use the MSDE data storage technology. All copies and instances of MSDE contained in or installed by the Server Software components may be used only by those Server Software components. Any such copy or instance of MSDE contained in the Server Software may not be accessed or used for any other purpose, i.e., the Server . Software version of MSDE may not be used for development purposes. In addition, any MSDE network library files that are disabled at the time you first install the Server Software may not be re-enabled. D. Automatic Internet-Based Services. The Server Software features described below are enabled by default to connect via the Internet to Microsoft computer systems automaticaliy, without separate notice to you. You consent to the operation of these features, unless you choose to switch them off or not use them. Microsoft does not obtain personally identifiable information through any of these features. For more information about these features, please see your Server Software documentation or the Microsoft online support site. . Windows Update Features. Under the Server Software's default configuration, if you connect a device to your Server and the correct device driver is not available on your Server, then Windows Update features on your SeNer (including Device Manager and the Plug & Play CDM Module) automatically attempt to check Microsoft computer systems via the Internet for the correct device driver. Having this happen automatically makes Plug-and-Play installation of new hardware a better experience for customers. You may switch off Windows Update's automatic driver checking feature. . Web Content Features. Under the Server Software's default configuration, if you are connected to the Internet, several features of the Server Software are enabled by default to retrieve content from Microsoft computer systems and display It to you. When you activate such a feature, it uses standard Internet protocols, which transmit the type of operating system, browser and language code of your Server to the Microsoft computer system so that the content can be viewed properly from your Server. These features only operate when you activate them, and you may choose to switch them off or not use them. Examples of these features include Windows Catalog, Search Assistant, and the Headlines and Search features of Help and Support Center. . Digital Certificates. Use of certificates based on the X.SOg standard is an important security feature of the Server Software. Certain functions of the X.SOg implementation (for example, certificate revocation checking and certificate path building) connect via the Internet to computer systems belonging to Microsoft and other digital certificate authorities to check the validity of digital certificates that you receive from third parties during certain Internet-based operations (for example, communications secured with SSL or IPsec, mail secured with S/MIME, and smartcard authentication). In Microsoft Product Use Rights 3-71 Microsoft Deveioper Tools 64 accordance with the X.509 standard, the Server Software automatically retrieves user certificates and certificate revocation lists when you attempt to access certificate protected content. Additionally, the Server Software's Auto Root Update feature wili occasionally update the list of trusted certificate authorities. Auto Root Update is an optional feature; you can uninstall it if you do not desire it to function. The other security operations based on the. X.509 standard can be prevented from operating by biocking Server Internet access. . Windows Media Digital Rights Management. Content providers are using the digital rights management technology for Windows Media contained in this Server Software ("WM-DRM") to protect the integrity of their content ("Secure Content") so that their intellectual property, including copyright, in such content is not misappropriated. Portions of this Server Software and third party applications such as media players use WM-DRM to play Secure Content ("WM-DRM Software"). If the WM-DRM Software's security has been compromised, owners of Secure Content rSecure Content Owners") may request that Microsoft revoke the WM-DRM Software's right to copy, dispiay andlor play Secure Content. Revocation does not aiter the WM-DRM Software's ability to play unprotected content. A iist of revoked WM-DRM Software is sent to your computer whenever you download a license for Secure Content from the Internet. Microsoft may, in conjunction with such license, also download revocation lists onto your computer on behalf of Secure Content Owners. Secure Content Owners may also require you to upgrade some of the WM-DRM components in this Server Software ("WM-DRM Upgrades") before accessing their content. When you attempt to play such content. WM-DRM Software built by Microsoft will notify you that a WM-DRM Upgrade is required and then ask for your consent before the WM-DRM Upgrade is downloaded. WM-DRM Software built by third parties may do the same. If you decline the upgrade, you will not be abie to access content that requires the WM-DRM Upgrade; however, you will still be able to access unprotected content and Secure Content that does not require the upgrade. WM- DRM features that access the Internet, such as acquiring new licenses andlor performing a required WM-DRM Upgrade, can be switched off. When these features are switched off, you wili stili be able to play Secure Content if you have a valid license for such content already stored on your computer. . Windows Media Player. Some features of Windows Media Player automatically contact Microsoft computer systems if you use Windows Media Player or specific features of it features that (A) check for new codecs if your Server does not have the correct ones for content you attempt to play (this feature may be switched off), and (B) check for new versions of Windows Media Player (this feature will operate only when you are using Windows Media Player). . Notice Regarding MPEG-4 Visual Decoders for Windows Media Player. USE OF THIS PRODUCT IN ANY MANNER THAT COMPLIES WITH THE MPEG-4 VISUAL STANDARD IS PROHIBITED, EXCEPT FOR USE DIRECTLY RELATED TO (A) DATA OR INFORMATION (i) GENERATED BY AND OBTAINED WITHOUT CHARGE FROM A CONSUMER NOT THEREBY ENGAGED IN A BUSINESS ENTERPRISE, AND (ii) FOR PERSONAL USE ONLY; AND (B) OTHER USES SPECIFICALLY AND SEPARATELY LICENSED BY MPEG LA, L.L.C. MPEG LA, L.L.C., has contractually obligated Microsoft to provide this notice. iv. Application Center 2000, For purposes of this product, "testing" shall be deemed to include (i) testing of your software products to ensure they are deployable with Application Center 2000; and (H) the right to build integration points (such as monitors) and determine any effects of use. v. Systems Management Server version 2.0 ("SMS"). A. You may install and use the Installer component of the Device Software ("SMS Installer") only on Devices used within your organization and only for the purpose of creating installation programs through the use of SMS Installer ("Setup Programs"). You may also use and modify the source code designated as "Sample Code" in the SAMPLES.TXT file for the sole purposes of designing, developing and testing your Setup Programs. B. You may also install and use in object code form the SMS Redistributables (as listed in the SMS REDIST.TXT file), along with any modifications you may make. to the Sample Code, only on Devices within your organization for a purpose other than creation of Setup Programs, provided that you: (i) reproduce and use the SMS Redistributables only in conjunction with or as part of a Setup Program; (ii) have a valid Client Access License for any version of Microsoft. Systems Management Server for each Device that uses the SMS Redistributables; and (iii) indemnify, hold harmless, and defend Microsoft and its suppliers from and against any claims or lawsuits, including attorney's fees, that arise or result from the use of your Setup Program or any software installed by your Setup Program. You do not have any other right to install or use SMS Installer. C. You have additionai rights to SMS under Section I.B.3. below. Microsoft Product Use Rights 3-78 Microsoft Developer Tools 65 4. Third Party Software Programs. The Software may also contain other third-party software programs. Any such software is provided for your use as a convenience and your use is subject to the terms and conditions of any license agreement contained in that software. B. Redistributable Code License Grants. In addition to the rights granted in Section I.A., certain portions of the Software as described in this section I.B., if included with the Software you have Hcensed, are provided to you with additional license rights. These additional license rights are conditioned upon your compliance with the distribution requirements and license iimitations described in Section I.C. ("Distribution Requirements and License Limitations"). 1. Sample Code. Microsoft grants you a limited, nonexclusive, royalty-free license to' (a) use and modify the source code version of those portions of the Software identified as 'Samples" in REDIST.TXT or eisewhere in the Software ("Sample Code") for the soie purposes of designing, developing, and testing your software product(s), and (b) reproduce and distribute the Sample Code, along with any modifications, in object code form, and/or, for the following products only, in source code form: Visual Studio.NET (all editions), and Visual FoxPro. For applicable redistribution requirements for Sample Code, see Section I.C.1. 2. Redistributable Code. Microsoft grants you a limited, nonexclusive, royalty-free license to reproduce and distribute the object code form of any portion of the Software listed in a REDIST.TXT file ("Redistributable Code"). For redistribution requirements, see Section I.C. 3. Software Development Kits (or "Developer Editions") for Server Software. Certain Server Products may also include listings in a REDIST.TXT file. For purposes of this Section, the files identified in any such Server Product are referred to as "Server Redistributables" and are subject to the same license grant provided above for Redistributable Code (see, Section I.B.2.). Server Redistributables, with the exception of the Microsoft SQl Server Desktop Engine ("MSDE"), are not, however, subject to certain redistribution requirements as specifically noted in Section I.C.1.a. 4. Microsoft Merge Modules ("MSM"). Microsoft grants you a limited, nonexclusive, royalty-free license to reproduce and distribute the content of MSM file(s) listed in REDIST.TXT in the manner described in the Software documentation only so long as you redistribute such content in its entirety and do not modify such content in any way. For all other applicable redistribution requirements for MSM files, see Section I.C. 5. Microsoft Foundation Classes (MFG), Active Template Libraries (A TL), and C Runtimes (CRTs). Microsoft grants you a limited, nonexclusive, royalty-free license to: (a) use and modify the source code version of those portions of the Software that are identified as MFC, A Tl, or CRTs (the "VC Redistributables"), for the sole purposes of designing, developing, and testing your software products; and (b) reproduce and distribute the object code version of the VC Redistributables, including any modifications (or enhancements to the functionality of the VC Redistributables), so long as you rename any files created by you that are included in your Application (as defined below in Section I.C.1.). For purposes of this Section, "modifications" shall mean enhancements to the functionality of the VC Redistributables. For all other applicable redistribution requirements for VC Redistributables, see Section I.C. C. Distribution Requirements and License Limitations. 1. General Requirements. a. If you choose to redistribute Sample Code, Redistributable Code, VC Redistributables, or Server Redistributables (collectively, the "Redistributables"), you agree: i. Except as otherwise noted in Section /B.1 ("Sample Code"), to distribute the Redistributables in object code form and only in conjunction with and as a part of a software application product developed by you that adds significant and primary functionality to the Redistributables ("Application"); ii. That the Redistributables only operate in conjunction with Microsoft Windows platforms; (NOTE: this subsection does not apply to Server Redistributables or MOD.) Iii. If the Application is distributed outside of your organization or is in any way provided to any third party, to distribute the Application containing the Redistributables pursuant to an end user license agreement (which may be "break the seal", 'click wrap" or signed), with terms no less protective than those contained in these product use rights and your license agreement; (NOTE: this subsection does not apply to Server Redistributables or MOD.) iv. Not to use Microsoft's name, logo, or trademarks to market the Application; v. To display your own valid copyright notice on the Application which shall be sufficient to protect Microsoft's copyright in the Software; (NOTE: this subsection does not apply to MOD.) Microsoft Product Use Rights 11\..........................\ t'C~~I;...~1 11..I..'.)}"I"""" Micr&of1 dtveloper Tools 66 . vi. Not to remove or obscure any copyright, trademark or patent notices that appear on the Software as delivered to you; (NOTE: this subsection does not apply to MOD.) vii. To indemnify, hold harmiess, and defend Microsoft from and against any claims or lawsuits, including attorney's fees, that arise or result from the use or distribution of the Application; viii. To otherwise comply with these terms and conditions; ix. Agree that Microsoft reserves all rights not expressly granted; and x. Not to permit further distribution of the Redistributables by your end users except you may permit further redistribution of the Redistributables by your distributors to your end-user customers jf your distributors only distribute the Redistributables in conjunction with, and as part of, the Application, you comply with all other tenms of this license agreement. and your distributors comply with all other restrictions of this license agreement that apply to you. . b. 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RESOLUTION ACCEPTING $57,305 FROM THE 2006 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT AND APPROPRIATING SAID FUNDS TO THE FISCAL YEAR 2006 POLICE GRANT FUND BUDGET. REVIEWED BY: Chief of pOlice~ City Manager f~ Pr (4/5ths Vote: YeslLNo --> SUBMITTED BY: The Police Department has recently received notice of an Edward Byrne Memorial Justice Assistance Grant (JAG) award in the amount of $57,305 from the Bureau of Justice Assistance (BJA). These funds were allocated to the Police Department based on population and Part 1 violent crime statistics. Part 1 violent crimes include murder and non-negligent manslaughters, forcible rape, robbery, and aggravated as~aults as reported by the FBI. Acceptance and appropriation of these funds requires a public hearing per stipulations of the Justice Assistance Grant. RECOMMENDATION: That Council conduct the public hearing and adopt the resolution accepting $57,305 from the 2006 Edward Byrne Memorial Justice Assistance Grant and appropriating $34,805 to Supplies and Services and $22,500 to Capital in the fiscal year 2006 Police Grant Fund budget. BOARDS/COMMISSIONS RECOMMENDATION: N/A BACKGROUND: The Edward Byrne Memorial Justice Assistance Grant (JAG) Program allows states, tribes, and local governments to support a broad range of activities to prevent and control crime based on their local needs and conditions. JAG blends the previous Byrne Formula and Local Law Enforcement Block Grant (LLEBG) Programs to provide agencies with the flexibility to prioritize and place justice funds where they are needed most. 4-1 Page 2,ltem: Meeting Date: 2/21/06 ~ GRANT REQUIREMENTS: Federal funds from the Edward Byrne Memorial JAG Program must be used to supplement existing funds for program activities and cannot replace, or supplant, nonfederal funds that have been appropriated for the same purpose. The unit of local government must provide an assurance that the application or any future amendment was made public and an opportunity to comment was provided to citizens and the neighborhood or community organizations to the extent applicable law. A local match is not required with the JAG Program. . DISCUSSION: The Police Department recommends using the JAG funds for the purchase of police-related supplies and equipment. The primary use of these funds will be to purchase equipment and supplies for the department such as additional radios for patrol, safety and other equipment throughout the entire department, and specialized equipment for the SWAT team. JAG funds have been traditionally used to augment the departments' equipment/sUpply funds. . FISCAL IMPACT: Approval of this resolution will result in the appropriation of $57,305 to the fiscal year 2006 budget of the Police Grant Fund. The funding from the 2006 Edward Byrne Memorial Justice Assistance Grant will completely offset these costs, resulting in no net impact to the General Fund. . PURPOSE AMOUNT 4-2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $57,305 FROM THE 2006 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT AND APPROPRIATING SAID FUNDS TO THE FISCAL YEAR 2006 POLICE GRANT FUNDBUDGET. WHEREAS, the Police Department has received notice of an Edward Byrne Memorial Justice Assistance Grant award in the amount of $57,305 from the Bureau of Justice Assistance; and WHEREAS, these funds were appropriated based on population and Part 1 violent crime statistics for purposes stipu!ated by the Edward Byrne Memorial Justice Assistance Grant program; and WHEREAS, the City Council held a public hearing on February 21, 2006, to notice use of the Justice Assistance Grant funding in the amount of $57,305 for police equipment; and WHEREAS, the Fiscal Year 2006 Police Grant Fund budget will be amended to add $57,305 for needed equipment and supplies. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept $57,305 from the 2006 Edward Byrne Memorial Justice Assistance Grant and appropriate $34,805 to Supplies and Services and $22,500 to Capital in the fiscal year 2006 Police Grant Fund budget. ~~ Richard P. Emerson Police Chief Approved as to form by: , ~~\y\'Q{~ Ann Moore City Attorney 4-3 CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: ~ 02/21/06 ITEM TITLE: PUBLIC HEARING: TO REVIEW THE CITY OF CHULA VISTA 2006-07 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM; THE HOME INVESTMENT PARTNERSHIP PROGRAM; THE EMERGENCY SHELTER GRANT PROGRAM (ESG); AND THE AMERICAN DREAM DOWNPAYMENT PROGRAM SUBMlnED BY: ASSISTANT CITY MANAGER/COMMUNITY DEVELOPMENT DIR.."tI'I REVIEWED BY. CITY MANAGER (II 4/STHS VOTE: YES D NO ~ BACKGROUND As a Hausing and Urban Development entitlement community, the City receives funds under three of their block grant programs: Community Development Block Grant (CDBG); the Emergency Shelter Grant (ESG); and the HOME Investment Partnership Act (HOME) program, which includes American Dream Downpayment Initiative (ADDI). The entitlement amounts are determined on a formula based on statistical and demographic data. The funds are for the Cities to provide decent housing and a suitable living environment, and to expand economic opportunities, principally for low- and moderate- income persons. Each entitlement community develops their own programs and funding priorities. Each year the City undertakes a process to solicit and apprave programs and projects for these grant funds. This item addresses the review of the 2006-07 entitlement amounts as well as the requests for funding received from various City departments and local organizations. The purpose of this public hearing is to offer the residents, non-profit organizations and other interested parties an opportunity to provide input on the 2006- 07 proposals received as well as the funding recommendations provided in Attachment No.1 of this report. RECOMMENDATION 1. Conduct the public hearing to review and accept public comment on the propasals for fiscal year 2006-07; 2. Approve projects and funding amounts for the CDBG, HOME and ESG Program (Attachment No.1). 5-1 PAGE 2, ITEM NO.: 5 MEETING DATE: 02/21/06 BOARDS/COMMISSIONS RECOMMENDATION None. DISCUSSION The City of Chula Vista receives annual entitlement grants from the u.s. Department of Housing and Urban Development (HUD) for the Community Development Block Grant, HOME Investment Partnership Act, and Emergency Shelter Grant programs to support activities, which benefit lower income households. The City of Chula Vista is expecting to receive: $2,042,661 in CDBG; $937,321 in HOME; and $86,993 in ESG entitlement funds from HUD for FY 2006-07. These amounts represent a 9.07% decrease for CDBG and a 5.5% decrease in HOME funds from 2005-06. This decrease is the result of recent budget cuts experienced due to Hurricane Katrina response. Community Development Block Grant (CDBG) In order to be eligible for block grant funding, a project or service must address at least one of the CDBG national objectives, which are: . Benefit primarily low and moderate income families; . Aid in the prevention or elimination of slums or blight; and, . Meet other community needs having a major emergency (disasters, etc.). Accompanying this report is the 2006-07 Grant Funding Application Notebook which compiles all Administration/Planning; Public Service applications; City Capital Improvement projects; Community Enhancement projects; Economic Development; Housing and Emergency Shelter Programs. Although not a HUD requirement, the Mayor, Council Members, City Manager and staff use the Notebook as a tool to display an overall picture of all the requests for funding received and provides a basis for funding recommendations. The total amount of CDBG funding requested is summarized below. It should be noted however, that the total amount of requests, exceeds the amount available by $1,025,161. 5-2 PAGE 3, ITEM NO.: MEETING DATE: S 02/21/06 Administration and Planning 20 % funding cap Allowable budget: $408,532 15% funding cap Allowable budget: $306,399 Allowable budget for remaining three catea 0 ri es: $440,000 Public Services CIP's Community Proiects Economic Development $692,331 $1,226,500 $672,600 $36.391 Subtotal TOTAL $1,935,491 $3,067,822 $1,327,730 $2,042,661 . Administration and Plannina: The City may allocate 20% (or $408,532) to Administration and Planning activities. These include City staff time reimbursements, fair housing services and homeless administrative services. . Public Services Proaram: The city may allocate up to $306,399 for public service programs, based on a 15 percent cap of the entitlement funds. Public Service activities include; but are not limited to, employment services, crime prevention, child care, health and drug abuse, education, energy conservation, welfare, recreation needs. The City received sixteen (16) eligible applicants for public services totaling $692,331. Although the total amount requested exceeds the amount of funds available, no applicant will receive less than their current (05/06) funding amount or less than their 2006/07 funding request. This is due to a decrease in the number of funding requests received. All of the funding requests for the public service programs are CDBG-eligible as they meet the national objective to primarily benefit low-income families. The proposals are included in the CDBG Notebook under Public Service Requests. . Capital Improvement Proiects: The Capital Improvement program category includes 7 City requests, which total $1,226,500. Three of the requests were submitted by the City's General Services Department. This includes the ADA Pedestrian Ramps Annual Program and the Sidewalks Annual Program. A total of 65% of the funds allocated to the ADA and the Sidewalk Annual programs and 100% of the Emerson Street Drainage funds will be utilized for improvements in the Southwest area of the City. The capital improvement program category does not have a funding cap limit. 5-3 PAGE 4, ITEM NO.: MEETING DATE: 5 02/21/06 Capital Improvement Projects may include acquisition, construction or installation of public facility improvements (except for building for the general conduct of government). Improvements include streets, sidewalks, curbs, gutters, parks, playgrounds, water/sewer lines, flood/drainage improvements, parking lots, utility lines, and aesthetic amenities on public property such as trees, sculptures, pools and other works of art. . Community Enhancement Proarams: The Community Enhancement Project category includes four (4) requests totaling $672,600. The Community Enhancement category was designed to work together with public or private improvements, which result in the elimination of blight in the community. There is not a CDBG funding cap for this category. . Economic Development Proarams: The two (2) Economic Development requests total $36,391 and include activities such as a revolving loan program and a business retention/expansion programs. There is not a funding cap for this category. However, subsequent to the HUD Audit and Annual Report review, HUD instructed City staff to abstain from funding any activities under this category at this time. Housina Proarams: In addition to the CDBG requests listed above, the City will receive three additional HUD grants under Housing Program. . HOME Investment Partnership Act Proaram (HOME): The City will receive $937,321 in HOME funds for FY 2006-07. HOME funds may be used to provide affordable rental housing and ownership opportunities through new construction, acquisition, rehabilitation, and tenant-based rental assistance. In the past years the City has used these funds to support new construction and acquisition activities related to the development of affordable housing. Examples of these projects include: MAAC Seniors on Broadway, Brisa del Mar as well as the rehabilitation of Casa Nueva Vida Shelter. A portion of the 2006-07 HOME funds will be set-aside to assist qualified developers in the production of affordable housing. The selection of these developers and housing projects will be selected through a competitive Request for Proposals process later in the year. . American Dream Downpavment Initiative (ADDI): Chula Vista will receive $17,444 in ADDI entitlement funds for fiscal year 2006-07. ADDI was created to assist low- income first-time homebuyers in purchasing single-family homes by providing funds for downpayment, closing costs, and rehabilitation carried out in conjunction with the assisted home purchase. ADDI funds are administered as a part of the HOME program. 5-4 PAGE 5, ITEM NO.: MEETING DATE: 5 02/21/06 . EmerQency Shelter Grant ProQram (ESG1: Chula Vista will receive ESG entitlement funds in the amaunt of $86,993 for fiSCQI year 2006-07. The City received one proposal from a local homeless service provider for the use of these funds. FISCAL IMPACT The City will receive Q total of $3,084,419 in combined federal grant funds from the u.S. Department of Housing and Urban Development for the CDBG, HOME and ESG grant programs. These funds will be used to provide: public services; housing services; complete capital improvement projects; produce affordable housing; and, aid the homeless. The City received an approximate 9% reduction from fiscal year 2005-06. In fiscal year 2005-06, the city allocated $384,790 of CDBG funds to code enforcement activities such as Community Preservation (a.k.a. Code Enforcement) and Housing Inspection. The proposed 2006-07 CDBG budget reduces the Code Enforcement allocation to $150,000 and Housing Inspection to zero. This would result in a net impact of $234,790 to the General Fund in fisCQI yeQr 2007. The reduced funding recommendation for the Code Enforcement Program is not the result of the decrease in federal funding but rather a response to Council direction to reduce reliance on the CDBG program for code enforcement Qctivities. In Qddition, staff is recommending not funding the Housing Inspection Program based on a recent audit conducted by HUD, which determined that the program was not eligible as the City does not hQve Qn active multi-family rehabilitation program. ATTACHMENTS 1. Funding Requests and Recommendations 2. Application Notebook 5-5 -ooo.......O'O>~Wf'V 0-0 00"""" 0. 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S' (Q ~ -u ro i3 ~ 0 a. 3- c ~ G- O 0" ~ " ro 0 0._ '" "')> 0 ~ ro - ;: 0 ;a. 6' m [ o a. 0 :;:0 " '" ~ 0" 0. '" '" ~. CD m " " 0 '" -a -", -a ;: o 0 (i) 5" e- m ~ & .. .. ~.. ro -" .. -.. "" " .0 ".0 ...0 CO " .. " (i) ",,, [ ~!! n .. a ::;:!L ~ - w '!. ~ ~ "'''' m '" .9 - ... Q .. ~...... ~ ........ Q .. :"'I?1 88 5-8 w w ..... '" COUNCIL AGENDA STATEMENT ~I Item 0:? Meeting Date 77/06 Sr//) / /v(, ITEM TITLE: Resolution Adopting the 2006 Legislative Program SUBMITTED BY: Legislative Committee Erin Bradley, Intergovernmental Affairs Coordinator 'I(/; REVIEWED BY: Legislative Committee (4/5ths Vote: Yes_ No.xJ The Legislative Program represents the City Council's position on items likely to be acted upon by the State Legislature, Congress, or administrative agencies. By adopting a Legislative Program at the beginning of each two-year legislative session and amending it at mid-term, Chula Vista is able to take a proactive role in sponsoring, supporting, or opposing bills related to the City's various legislative priorities. RECOMMENDATION: That the City Council approve the resolution adopting the 2006 Legislative Program. BOARD/COMMISSION RECOMMENDATION: This report from the Legislative Committee reflects their comments as well as input from the City's department directors. A copy of the draft Legislative Program was sent to City Departments on in December and January. It was sent to Council as an Information Item 1/30/06. DISCUSSION: Background on the Legislative Program The Legislative Program (as instituted by Council Policy 300-01 in 1987) is used to identifY and adopt position statements regarding a variety of issues that reflect the policy and direction of the City Council. This action sets guidelines that permit staff to make timely responses consistent with the Council's desires to sponsor, support or oppose bills during the legislative session. By taking action on a comprehensive program at the start and midpoint of the state legislative and Congressional sessions, the City is able to work with our locally elected representatives to introduce needed legislation as well as position itself proactively on a wide range of issues. Presented in this report is an updated 2006 Legislative Program to guide staff and our legislative consultant throughout the coming legislative session. 5->f- '.- l Contents of the Legislative Program In general, the Legislative Program lays out the City's positions in the following subject areas: Page 2, It~ ~/ r;; Meeting Date /06 , , _ -,/-, " <~/I"'~ I;,.i 'k A. Economic Development B. Energy C. Environmental Protection D. Fiscal Support/Home Rule E. General Government F. Housing & Community Development G. Land Use Planning H. Library 1. Parks & Rec(eation J. Public Employer-Employee Relations K. Public Liability L. Public Safety M. Public Works & Transportation N. Redevelopment The program is administered by the Legislative Committee and includes items that are generally non-controversial such as: . Supporting additional state or federal funding for local government and/or Chula Vista programs . Opposing unfunded mandates . Protecting home rule authority . Reforming various state and federal programs to improve local service delivery Through the adoption of this program by the City Council, related bills can be acted upon directly by the Legislative Committee, so that the City's poSition can be communicated quickly to the City's lobbyist, appropriate legislators and other key decision-makers. Notification of positions taken and copies of any letters sent are then forwarded to the City Council for information. In addition, through the efforts of the League of California Cities, professional organizations to which various city staff belong, or as a result of research by the City's lobbyist, legislative proposals may be brought to the attention of the Legislative Committee that are not covered by the Legislative Program. These items are brought to the City Council for review and direction. Items that may be seen as controversial, irrespective of whether they are covered by the Legislative Program, are also submitted to the Council. Proposed Legislative Program Changes for 2006 The proposed amendments for 2006 are relatively minor. These include: 1. Supporting SB 153, the California Clean Water, Clean Air, Safe Neighborhood and Coastal Protection Act of 2006 2. Supporting incentives for communities to establish sustainable economic development that minimizes the impact to natural resources and provides quality jobs that complement local and regional economic prosperity. . ~'\ / .~l 0~(':' "'" Page 3, Item4 "~ Meeting Datr ,.,;) 3. Supporting local incentives to participate in siting new generation facilities by preserving local land use authority, supporting the broad application of local Utility User tax ordinances, ensuring that local mitigation affects the area oflocal impact. 4. Supporting collaboration with host jurisdictions in an open, transparent and inclusive process to invest ratepayer dollars in a reliable transmission grid that respects their quality of life and sustainability goals not focused solely on lowest cost. 5. Supporting the removal of barriers in order to provide incentives allowing local government to develop landfill based renewable energy resources for sustainable local environmental and economic development opportunities. 6. Support the promotion oflocal governments participating in green credits and emission trading to ensure an environmentally just application. 7. Support efforts to purse and obtain non-general fund revenues to acquire, preserve, restore and maintain a sustainable regional watershed through conservation planning of Chula Vista wetlands, riparian habitat and multi-species habitat, open space, greenbelts, rivers, streams and trails. 8. State funding for new construction as well as renovation of parks and recreation facilities, and expansion of recreation facilities and parks in underserved areas. 9. State and Federal funding for City programs such as those supporting: after school programs, youth health and fitness, gang prevention and diversion, the arts, childcare, and drug prevention and intervention in a community-based recreation setting. ) . FISCAL IMPACT: Adoption of the Legislative Program for 2006 does not result in any direct cost to the City. There are, however, fiscal impacts associated with the Legislative Program; specifically the City's contract with a legislative advocate in Sacramento (Advocation, Inc.), which is capped at $79,000 per year. Achieving the goals of this program can, and has, lead to significant financial benefits. In addition to the grants and appropriations that the Program authorizes the staffto pursue, Legislative Program successes prevent loss of critical resources and protect the City's ability to deliver services to our residents and businesses. cA 7'.-: /.~ RESOLUTION NO. 2006-_ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE 2006 LEGISLATIVE PROGRAM WHEREAS, Council Policy 300-01, dated January 1987, provides for the adoption of a City Legislative Program; and WHEREAS, the Legislative Program represents the City Council's position on items likely to be acted upon by the State Legislature, Congress, or administrative agencies; and WHEREAS, by adopting a Legislative Program at the beginning of each two-year legislative session and amending it at mid-term, Chula Vista is able to take a proactive role in sponsoring, supporting, or opposing bills related to the City's various legislative priorities; and WHEREAS, it is necessary to adopt an updated 2006 Legislative Program to guide staff and the City's legislative consultant throughout the coming legislative session. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt the 2006 Legislative Program as set forth in Exhibit "A". BE IT FURTHER RESOLVED that staff and the Legislative Committee are hereby authorized to implement this program. Presented by Approved as to form by David D. Rowlands, Jr. City Manager (:~ dJ~ (()G.71-U I/u1{ Ann ore City Attorney J:\AttomeyIEHullIRESOS\Legislative Committee_02-07 -06.doc ~ ::~. LJ 2006 CHULA VISTA LEGISLATIVE PROGRAM A. Economic Development. 1. Support efforts m: a. Enhance Californials overall business climate with particular emphasis on streamlined regulations and reduced costs of doing business (including the reactivation of Revenue and Taxation Code section 5108 personal property tax rebates). b. Strengthen existing business attraction and retention programs including: Enterprise Zones, Recycling Market Development Zones and California Infrastructure Bank. c. Continue and! or enhance funding of State and Federal Economic Development agencies, including: i. California Trade and Commerce Agency ii. U.S. Department of Commerce, Economic Development Administration (EDA) iii. U.S. Housing and Urban Development (HUD) Community Development Block Grant and Economic Development Initiative d. Create new business assistance programs with eligibility criteria for which Chula Vista would qualify. e. Create or enhance programs which support cross-border commerce and Chula Vista import! export companies. f. Increase the flexibility of the use of HUD Community Development Block Grant funds as they relate to general economic development projects and programs. g. Continue the Community Reinvestment Act and accountability to small businesses development programs. h. Provide incentives for communities to establish sustainable economic development that minimizes the impact to natural resources and provides quality jobs that complement local and regional economic prosperity. B. Energy. 1. Support measures that a. Assist the City and its energy consumers in meeting the priorities outlined in the City Energy Strategy and Action Plan as they compliment the state "loading order," energy conservation, distributed generation, renewable and best available clean fossil fuel generation, reliable and complimentary transmission and distribution. b. Require the Public Utilities Commission to implement the intent and spirit of AB 117 (statutes of 2002) regarding "community aggregation" and "public purposes goods fees". i. Reasonably limit the time in which CCA customers are exposed to Investor Owned Utility energy procurement practices, including but not limited to the Customer Responsibility Surchage (CRS). ii. Allow cities and counties to receive intervener compensation for participation in issues before the CPUC that affect Community Choice Aggregation customers. 1 ~(c' -'" c. Confirm and implement local options to control and fund energy and conservation programs. d. Enhance the City's ability to support the State "loading order" by removing barriers and providing incentives that allow the City to work with residents and businesses to enter into distributed generation agreements without having to pay stranded transmission or distribution charges. e. Increase incentives and remove barriers for developing local photovoltaic, wind and other "green" alternative energy resources. f. Ensure transmission of energy is done tluough new or existing local generation sources andf or renewable sources. Note: There is a growing movement to import energy from out of state that is generated using fossil fuels aI\d other non-renewable sources. This has long-term impacts on air quality as well as fiscal implications related to transnrission congestion charges imposed on Chula Vista and other local ratepayers. i. Work with host jurisdiction in an open, transparent and inclusive process to "invest," ratepayer dollars in a reliable transmission grid that respects their quality of life and sustainability goals not focused just on lowest cost. g. Retire and decommission the older more polluting single cycle power plants as soon as possible. h. Reduce and remove costly Reliability Must Run (RMR) status from older less efficient power plants whenever possible, and ensure that RMR is removed or transferred in an environmentally just manner that reflects local impacts. i. Implement efficiency-enhancing technologies (such as combined cycle generation) that improve consumer choice andf or enhance competition among energy providers, particularly in service territories primarily dependent on Investor Owned Utilities. j. Work with local host jurisdictions in an open, transparent and inclusive process to re- power andf or relocate older plants with new, more efficient, less polluting facilities. k. Provide local incentives to participate in siting new generation facilities by preserving local land use authority, supporting the broad application of local Utility User tax ordinances, ensuring that local mitigation affects the area of local impact and implement an open, transparent and inclusive local public process. l. Remove barriers and provide incentives to allow local government to develop landfill based renewable energy resources for sustainable local environmental and economic development opportunities. m. Promote local government participation in green credits and emission trading to ensure an environmentally just application. 2. Oppose measures that: a. Impinge on or restrict the City's ability to exercise land use review f control with respect to the generation or transmission of power and restrict the local and state commitment to an open, transparent and inclusive process. b. Erode the City's ability to acquiref generate power from alternative sources or enter into aggregation andf or distributed generation arrangements. 2 .c-~ -r'" ~-r;. c. Impose municipal departing load charges and other municipal exit fees, as well as attempts to regulate or limit municipal rights under the state constitution. d. Would allow the Public Utilities Commission or Investor Owned Utilities to limit local participation in the use/ allocation of Public Purpose Goods Fees. C. Environmental Protection. 1. Support efforts to: a. Require an environmental irupact report (EIR) for large projects/utility mergers. b. Actively pursue and obtain non-general fund revenues to acquire, preserve, restore and maintain a sustainable regional watershed through conservation, planning of Chula Vista wetlands, riparian habitat and multi-species habitat, open space, greenbelts, rivers, streams and trails. c. Fund planning and land acquisition for Natural Community Conservation plans. d. Obtain funds for comprehensive environmental management planning for San Diego Bay. e. Prohibit the granting of new leases for oil and gas development in state-owned coastal waters off San Diego County. f. Promote the installation and use of water/ energy conserving fixtures in new & existing buildings. g. Obtain funding for water conservation to include the construction of recIairued water distribution systems, and fixture and irrigation system new construction, renovation and retrofit. h. Encourage post-<:onsumer recycled product use in manufacturing, residential and business applications through incentives, educations, promotions, etc. i. Ensure long-term agreements that provide recycling incentives and/ or profitable markets for a broader range of products than are currently recycled. j_ Require "disposal warning" labeling on household hazardous materials, which reduce the use of toxic materials, and which promote nontoxic alternatives to present materials. k. Require minimum content standards for use of recycled materials in manufacturing processes_ I. Provide funding for environmental enterprise incentives, specifically Recycling Market Development Zones (RMDZ). Note: The RMDZ program has been extended through 2006. Chula Vista and the City of San Diego have a signed MOU for an RMDZ partnership. Program is being implemented. m. Continue to expand the number of advance disposal fees and accompanying block grant programs that allocate funds for local government to provide efficient, effective and convenient recycling, and safe disposal options for residents and small businesses. Particularly, funding for convenient and cost effective source reduction and disposal options for conditional exempt small quantity generators for hazardous, universal and electronic wastes. 3 ~(~-'7 n. Enact a statewide landfill ban on designated recyclables. Note: This would encourage development of new feedstock capacity and strengthen/ stabilize long-term markets. o. Reauthorize the Federal Water Resources Act, including provisions to raise the reimbursement limit and provide reimbursement for construction expenditures. Note: With a revised reimbursement limit, Chula Vista could be e1igJ.D1e for up to an additional $5 million for further improvements along the Telegraph Canyon Creek flood control channel. p. Modify the Clean Water Act to give the City of San Diego an exemption from current "mass emission reduction" requirements. q. Iml?acts associated with the construction and maintenance of drainage facilities in urban areas should be allowed to receive mitigation credit for the inclusion of "Best Management Practices" to off-set iml?acts to sensitive species. Note: At present, the City may be required to purchase mitigation land amounting to as much as four times the project size. r. Grant local agencies authority to me appeals with the State Water Quality Control Board (SWQCB) concerning actions by a Regional Water Quality Control Board (RWQCB). s. Advance the use of low-emission and zero-emission vehicles through market incentives, credits, rebates, public/private partnerships and other innovative solutions. t Create incentives for renewable power generation and distribution. u. Create incentives for energy-efficient building programs. w. Develop and apply a standardized state/ national definition of "greenpower". x. Require "truth in labeling" with respect to green power generators and providers. y. Improve the coordination of State, Federal and local agency responses to air quality control, energy and environmental protection. z. Continue to establish a cost effective and efficient process for local governments and large generators to document green house gas emissions as a regulated pollutant and provide local incentives for public-private partnerships. aa. Provide State or Federal funding to construct facilities to capture and treat the flow of raw sewage entering San Diego from Tijuana. bb. Encourage development of environmentally sound techniques for treating hazardous waste to reduce its volume and eIiminate any toxicity without infringing on home rule authority over the decision of whether (or when) to implement such techniques. cc. Provide funding from State, Federal or outside sources to study the water quality/toxic pollution in San Diego Bay. dd. Encourage development of water resource facilities and make improvements to the delta without imposing unfunded mandates on local governments. ee. Provide financial assistance to construct new and upgrade existing secondary treatment facilities in San Diego County. Note: Funds from all sources should be pursued. ff. Improve the efficiency of environmental regulations and enforcement actions of such agencies as: Department of the Interior, Corps of Engineers, Department of Commerce, 4 /-% ..:;:;:r " & 'j .' \ " ( . National Oceanic and Atmospheric Administration and Environmental Protection Agency. gg. Provide for streamlined environmental permitting processes for public works projects that are included within an adopted multiple species conservation plan that is in conformance with the State's Natural Community Conservation Program. 2. Oppose efforts to: a. Nullify or weaken the current climate change treaty (Kyoto Protocol) that requires the United States to reduce its greenhouse gas emissions by 7% from 1990 levels by 2010. D. Fiscal Support / Home Rule. 1. Support efforts that a. Permit retention and control by local governments of a greater portion of revenue generated by Federal, State, and local taxes, fees and fines (e.g. vehicle code fines). b. Require the Federal government and State to reimburse local governments for all mandated costs or regulatory actions or that allow cities to cease performance of unfunded mandates. c. Retain maxlinum flexibility in the administration of Article XIIIB, XIllC and XIllD of the state constitution (XIIIB: the Gann Initiative-local expenditures are limited by population growth and CPl factors; XIllC & D: Proposition 218). d. Expand local autonomy or the home rule authority to govern municipal affairs. e. Enhance the quality of urban life by funding the creation, improvement, or expansion of parks, libraries, community services and infrastructure, such as roads, flood control, etc. f. Provide State/Federal funding for construction or renovation of public buildings such as conurrunity centers, libraries, civic center, etc. g. Expand the sales tax base to include mail order sales/home shopping sources, internet- based commerce. h. Provide that cities and school districts can issue general obligation debt with a majority vote instead of the current 2/3-vote requirement. i. Ensure that, upon dismantling of the South Bay power plant, the City/Agency receives in-lieu revenues to replace any monies lost as a result of plant relocation. j. Provide for fiscal reform in the form of greater reliability, certainty, and equitability of state funding for local governments. k. Reallocate sales and property taxes to the benefit of local governments. L Permit government agencies to pass through, to the consumer, the bank fees associated with credit card transactions. Note: The City would be better able to offer the convenience of credit card usage to area/residents, businesses if local government were not probibited from passing these bank costs to the consumer. m. Protect cities' ability to fund capital improvement projects through tax-exempt bonds. 5 s/f &< fj n. Increase the Industrial Development Bond cap. o. Promote cooperative purchasing opportunities for local government, (ie. master agreements, California Multiple A ward Schedules, State price lists) along with opportunities to process and disseminate bids via electronic means. 2. Oppose efforts to: a. Restrict the use of, or reallocate, city revenues such as Vehicle License Fee funds, Transient Occupancy Tax revenues, and Business License Tax revenues. . b. Exempt residential users from the Utility users tax. c. Reallocate fines and forfeitures to the detriment of cities. d. Repeal Gas Tax exemption for local agencies. e. Reallocate sales and property tax revenue to the detriment of cities. f. Limit cities' authority to enact or impose mobiIehome or residential rent control. g. Limit cities' authority to: enact and assess fees to recover the full cost of providing user- specific services; recover the full costs of assessment district maintenance; license or lease use of any property within the jurisdiction of the City by telecommunication companies, utilities or cable providers. h. Infringe on home rule authority to act on local budget and fiscal matters or other municipal affairs, or to impose unfunded mandates onto local government. i Overhaul the California Public Records Act in a way that would: restrict cities' control of the means of access to information assets (e.g. computer databases, proprietary software), limit cost recovery for providing such access, or violate the privacy of the parties from whom the data was collected. j. Limit imposition of franchise fees, taxes, or other compensation for use of public right-of- way; local rate regulation; operational oversight; or right-of-way controls on cable or satellite television operators and other telecommunications providers and utilities. k. Preclude cities from collecting Utility users tax (UU1) revenue on cellular or digital telephone use when negotiating UUT agreements. E. General Government. 1. Support efforts to: a. Subject the State Legislature to the same requirements for public meetings, advance agenda, etc. as are currently imposed on cities through the Brown Act. b. Limit to 1 % the amount of administrative costs the Board of Equalization may charge to administer local sales taxes such as San Diego's halkent sales taxes for transportation and justice facility construction. c. Facilitate increases in Open Space District assessments by an amount not to exceed the Consumer Price Index (CPl) or higher if increased costs are beyond the control of local governments (e.g. imposed by water districts). 6 ~ t,../(/' d. Provide funding for the selection of Chula Vista as the site of a new collaborative campus including participants such as the University of California, California State University , Southwestern Colle~e and perhaps an international university. e. Provide funding for Chula Vista's SMART Community program, alternative fuels programs, and other technology-based projects. f. Fund school facility construction programs without increasing the fiscal burden of local government. g. Clarify the authority of school districts to impose facilities fees established by Ch. 887, Statutes of 1986 (AB2926). h. Maintain Chula Vista's central position in the 40~ Senate District and 79~ Assembly District. i. Coordinate Federal Coast Zone Management Act, Environmental Protection Agency (EPA) regulations and State Coastal Zone Act, in an effort to eliminate duplicate efforts. 2. Oppose efforts to: a. Mandate district elections in all cities and/ or school districts. b. Impose border crossing fees on the U.s.jMexico international border. c. Impose greater restrictions on local government through amendment of the Brown Act. d. Divide cities among multiple Congressional, State or Supervisorial districts. F. Housing & Community Development. 1. Support efforts to: a. Exclude redevelopment agencies from competitive bidding statutes and fair market value restrictions for resale of public properties to permit joint development of public facilities by private developers upon findings of public benefit. b. Extend the following three Federal Low-Income Housing Programs: i. Mortgage Credit Certificate Program for low/moderate income home buyers; ii. Tax Credits for low income housing programs; and, iii. Continue funding for HUD HOME and HOPE Programs. c. Change Federal banking regulations to exempt banks from having to count financing or Letters of Credit for low income housing in their risk capital limit calculations. d. Provide additional or enhanced State/Federal or other assistance to first-time homebuyers, including efforts to increase funding for the City's Mortgage Credit Certificate program. e. Support principles for housing element reform legislation as recommended by the SANDAG Housing Element Advisory Committee and approved by the SANDAG Board. f. Prevent the loss of affordable housing units through federal funding for acquisition of at- risk units by non-profit agencies; and special section 8 subsidies for affected low-income tenants. g. Encourage the use of alternative dispute resolution measures as opposed to costly and time consuming litigation in condominium and townhouse construction defect challenges. 7 ,c" --;#-" d/ / ! Note: The proliferation of lawsuits over alleged construction defects has led to a sul::6tantial withdrawal from condominium/ townhouse construction by the development industry throughout California. These attached homes <lIe a critical element in the first.time home buyer market. h. Develop Federal and State participation and financial support for programs to provide adequate housing for the elderly, handicapped and low-income persons throughout the community. i. Maintain and create tax incentives for private revitalization of existing commercial, industrial and housing resources where such assistance benefits the City. j. Allow local jurisdictions to adopt the International Residential Code as an alternative to state-mandated codes as a means of reducing the cost of new housing. Note: warring factions in the building industry are mardpulating current state codes m a power struggle. This addition to the Legislative Program is suggested as a means of neutralizing that power struggle while still meeting the safety needs of the public. 2. Oppose efforts to: a. Grant the State or Federal government approval or veto authority in the implementation of local redevelopment and rehabilitation projects. b. Prohibit any state agency from making subventions, financing, insurance or any other kind of assistance, available to any city or county that has in effect any rent control measure. G. Land Use Planning. 1. Support efforts that a. Strengthen local governments' powers and capacity to prepare, adopt and implement plans and programs for orderly growth, development, beautification, and conservation of their planning areas. b. Are consistent with the doctrine of "home rule" and the local exercise of police powers, through the planning and zoning processes, over local land use. c. Expand the land use, conservation, and growth management policies of municipalities to the unincorporated territories within their spheres of influence. d. Broaden local government's power to require developers and subdividers to provide the on-site and off-site facilities and infrastructure needed by their projects. e. Maximize the authority of the City to exercise local control over general plan decisions. f. Require special districts and school districts, including community colleges, to adopt facility master plans which are consistent with City and County general plans and growth management programs, and to adopt five year capital improvement programs and financing plans which are consistent with their facility master plans. g. Limit Coastal Commission authority over land use decisions outside the Coastal Zone, including those that are tied to Federal permits such as Habitat Conservation Plans and Incidental Take Permits pursuant to the Federal Endangered Species Act. h. Provide local government incentives and funding priority for facilitating smart growth principles in their planning programs. 2. Oppose efforts to: 8 ~.L.-- {.- j.~ a. Abridge local governments' ability to effectively plan, or regulate local land use including: amendments to the laws governing the local agency formation commission (LAFCO); legislation which would financially overburden local governments in their efforts to amend planning policy, regulate land use through removal of incompatible developments, redevelop blighted areas, or annex territories which are within a city's spheres of influence. b. Site airports that would adversely impact the Chula Vista area. c. Politicize the adoption of State Mandated Building and Life Safety Codes. d. Introduce major changes to Building, Energy or Accessibility code requirements without providing sufficient time and resources for local government and industry training. H. Library. 1. Support efforts to: a. Provide continued, augmented or full funding for the: California Public Library Fund (PLF), Library of California and California Library Services Act (CLSA), including Transaction Based Reimbursements, literacy programs and library services for all age groups. b. Provide for continued and/or augmented funding of the Federal Library Services and Technology Act c. Fund library construction and/ or renovation. d. Provide programs at both the State and Federal level that guarantee for libraries the largest possible discount in rates for telecommunication services, internal connections and access to the Internet. e. Preserve existing provisions that exempt libraries from having to act as censors of literature or information. 1. Parks & Recreation. 1. Support efforts to: a. Provide State/Federal funding for such City programs as those supporting: the arts, child care, after school programs, gang prevention and diversion, and drug prevention and intervention in a community-based recreation setting. b. Provide funds for construction of new parks as well as renovation of deteriorating park and recreation facilities. c. Support SB 153, the California Clean Water, Clean Air, Safe Neighborhood and Coastal Protection Act of 2006. d. Provide state funding for new construction as well as renovation of parks and recreation facilities, and expansion of recreation facilities and parks in underserved areas. e. Provide State and Federal funding for City programs such as those supporting: after school programs, youth health and fitness, gang prevention and diversion, the arts, childcare, and drug prevention and intervention in a community-based recreation setting. 9 S45 , , ; >' """." ! J. Public Employer-Employee Relations. 1. Support efforts to: a. Protect the rights of cities to establish conditions of employment, including hours, wages, employee benefits, the meet-and-confer process, appeal procedures, and management rights. b. Reform California Workers' Compensation Program to reduce public costs and tighten restrictions. c. Amend the Fair Labor StandardS Act to ensure that executive, administrative and professjonal employees still qualify as exempt. 2. Oppose efforts to: a. Impose restrictions on the scope and authority of charter cities to control their own health plans or retirement systems. b. Mandate the inclusion of local government employees in the Social Security System and! or Medicare. c. Increase workers' compensation benefits without also making need~dreforrns. d. Mandate changes, impose limitations, and! or other benefit plans, wages, hours, or working conditions that are properly determined through the meet- and-confer process. e. Mandate binding arbitration in public employee disputes. f. Reduce local control over public employee disputes and impose regulations of an outside agency (such as PERB). g. Prohibit employers from testing employees or employment applicants for illegal substances. K. Public Liability. 1. Support efforts to: a. Change the legal principal of "joint and several liability" to protect the City against "deep pocket" liability. b. Reinforce public entity design and discretionary act immunity. c. Prohibit recovery by a plaintiff for injury where those injuries were caused as a result of avoiding a police pursuit. d. Minimize governmental financial exposure to frivolous lawsuits and improve liability protection for governmental agencies and their personnel. e. Expand the existing list of "hazardous activities" so that public entities and public employers are not liable for injuries to any individual(s) who participate in these activities (e.g. skateboarding, rollerblading). 2. Oppose efforts to: a. Further erode government immunity. 10 ~'/. / '-I . b. Force the City to accept risks it would not normally accept in the ordinary course of business (e.g. mandating acceptance of below-grade or low-grade sureties on performance bonds or labor and materials bonds). f. Repeal Proposition 213 (1996) that prevents uninsured motorists from collecting damages, other than property damages, through litigation. Note: Trial Lawyers Assoc. hopes to repeal this measure protecting cities, among others, from W1due liability. L. Public Safety. 1. Support efforts to: a. Strengthen present State and Federal laws that give local governments the power to further restrict or regulate prostitution. b. Increase penalties for the manufacture or sale for profit of dangerous drugs. c. Prohibit the sale and brandishing of replica or facsimile firearms. d. Toughen drunk driving laws, penalties or enhancements. e. Strengthen the City's ability to regulate public displays of material that is harmful to minors. f. Legalize alternative methods of police enforcement activities. g. Provide greater authority for police or other local agencies to control graffiti, curfews, juvenile crime and alcoholic beverage control. h. Provide funding for local public safety staffing, programs or equipment, as well as programs that foster interdepartmental or inter-agency cooperation. i. Develop a uniform "junk gun" ban that does not restrict the type of weaponry used by off-duty law enforcement officers. j. Protect local governments' ability to establish! determine the level of Emergency Medical Service (EMS) provided within their own boundaries. k. Provide reimbursement to local government for "first responder" coslS associated with pre- hospital treatments such as those provided by local fire department persoJ:]TIel. 1. Increase municipal funding for the removal of abandoned vehicles. 2. Oppose effor1S to: a. Preempt local public safety ordinances. b. Reduce State! Federal funding for public safety programs. c. Reduce or impair the authority of local agencies to control graffiti, curfews, juvenile crime and other public safety issues. d. Change! remove date, and! or shift to the employer, the burden of proof related to all illness presumptions. M. Public Works & Transportation. 1. Support efforts to: 11 S~r/ 1- t"'-. ...;;> a. Provide funding to complete missing freeway links (e.g. SR-125 and I-90S) and other critical transit corridors or transportation projects. Note: Construction of the Sweetwater segment of SR-125 has begun. It is in the aty's best interest to ensure that completion of the project remain a high priority for the State. b. Reduce municipal costs associated with CalTrans projects. c. Allow local agencies flexibility in compliance with the Americans with Disabilities Act to provide the greatest benefit to the local disabled population, rather than committing scarce resources to achievement of 2 % maximum sidewalk and driveway slopes. d. Revise speed limit laws to allow for radar enforcement of residential street speed limits (e.g. at levels below the 85th percentile as determined by a traffic study). e. Require CalTrans to allow cities an exemption from CalTrans' public work project requirements if that required work is a result of improper maintenance on CalTrans' part or, require CalTrans to pay for such additional work if it is included as part of a local agency's public works project. f. Amend PUC regulations to prohibit utilities from locating cables directly into concrete sidewalks and require said cables to be placed 24 "-36" below sidewalk surfaces. Note: Engineering and Public Works staff report an on-going problem in finding telephone cables embedded in the concrete sidewalks. Sidewalk reconstruction becomes virtually impossible without damaging the cable lines. g. Exempt all city vehicles and transit drivers from the Biennial Inspection of Terminals program requirements for "drivers hours of service" during emergencies, similar to the exemption granted to gas and electric companies. Note: This program was intended to regulate the times that commercial truck drivers spend on the road, but has no exemptions for city vehicles other than those operated by the Fire Department. It unnecessarily restricts city public works vehicles and hampers local governments' ability to respond to emergency situations such as flooding or earthquake damages, h. Increase the priority given to public works facility funding from State and Federal sources to projects (including but not limited to roads, bridges and light-rail transit facilities) that are linked to implementation of "smart growth" policies (e.g. jobs/housing balance, transit oriented development, etc.) i. Allow cities to collect fees for use of the public right of way from currently exempt users such as telecommunications companies. j. Provide funds to assist cities in meeting the National Pollutant Discharge Elimination System (NPDES) requirements. k. Provide fair share allocation of clean water grants and bond funding to communities in southern California. Note: A disproportionate share of these funds currently go to northern California. I. SUPT;>ort efforts to require public and private utilities to design. locate and screen utilitv cabinets. boxes. pedestals and backflaw jJreventors adiacent to the public ri~ht-of-way in aesthetically acceptable manner to local jurisdictions. m. Place a greater emphasis on providin~ infrastructure fundin~ to cities that do 'smart Inowth' v1annine-. 2. Oppose Efforts to: a. Further restrict development impact fees far roads, bridges, and public facilities levied against developers of property. 12 .--~- / ../ / ~/ '-P ,r ~.~" -- ~.... b. Further restrict fees and assessments levied against individuals or entities receiving a special benefit. N. Redevelopment. 1. Support efforts to: a. Amend the State Community Development law to allow a jurisdiction to combine tax increment from all projects for use in a specific project. b. Extend the life of redevelopment project areas, as well as the time during which debt may be incurred or issued in those project areas. c. Facilitate the formation of Business Improvement Districts and extend the life of those districts . d. Increase fundingf incentives to redevelop brownfield projects e. Provide funding for the Chula Vista Nature Center. f. Facilitate the recommissioning, redesign or relocation of the San Diego Unified Port District South Bay Power Plant and assist with the redevelopment of this bayfront property. g. Allow certain land uses under the State Tidelands Act that are conducive to providing jobs in the "high tech industry". 2. Oppose efforts to: a. Discontinue State supplemental subvention for redevelopment agencies. b. Further control or restrict the use of tax increments in redevelopment projects. c. Reduce the number of San Diego Unified Port District Commissioners andf or require commissioners to be elected members of the city council that they represent. 13 ~1 (.-~<.. / ,,/'1 COUNCIL AGENDA STATEMENT Item: 7 Meeting Date: Februarv 21, 2006 ITEM TITLE: Resolution Approving a Pilot Project for Spanish Interpreter Services at City Council, Redevelopment Agency and Chula Vista Redevelopment Corporation Meetings and Workshops and Appropriating Funds Therefore REVIEWED BY: c::- Assistant City Manager Thomson (II Director of Communications Pursellp ,</ ~ J'K City Manager d (4I5ths Vote: YES.lL NO ~ SUBMITTED BY: City Council members have expressed a desire to have Spanish interpreter services available at Council and Redevelopment Agency meetings and workshops. RECOMMENDATION: That the City Council adopt the resolution approving a pilot project through the remainder of FY 2005-2006, in which professional Spanish interpreter services are made available at City Council, Redevelopment Agency and Chula Vista Redevelopment Corporation meetings and workshops, and appropriating $20,500 to the fiscal year 2006 Services and Supplies Administration budget from the available balance of the General Fund. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: At the City Council meeting of February 7, Councilmember Chavez referred to staff the issue of providing interpreter services at Council and Redevelopment Agency meetings and workshops. The new City Council Chambers includes an interpreter room equipped with microphones and wireless technology that allows the interpreter inside to communicate with members of the audience wearing special headsets. This equipment will allow non-English speaking members of the audience to understand the proceedings. 7-1 Page 2 Meeting Date: February 21. 2006 The city's system does not address the need of non-English speaking members of the public who wish to address the City Council/Redevelopment Agency from the podium. To accommodate that need, the interpreter will need to leave the booth at the back of the chamber, come forward to the podium, and stand next to the individual speaking to the Council/Redevelopment Agency members. Simultaneous interpretation is a specialized and advanced skill. It requires a great deal of training and testing in order to be certified in the State of Califomia. The intense nature of this type of interpretation makes it very difficult for one individual to sustain a steady and accurate translation for long periods of time. Professionals who have been interviewed about this process indicate that meetings lasting longer than two hours will require two interpreters who can relieve one another from the rapid pace every twenty minutes throughout a meeting. . Staff is recommending a pilot project to determine the level of demand for this service. It will allow us to evaluate whether those attending Council/ RDA / CVRC meetings and workshops require interpretation of all or portions of these sessions, and whether one or two interpreters are likely to be needed at each meeting. A random sampling of 10 professionals reveals a wide range in the amount charged for interpreter services. Prices vary from $75 dollars/hour with a two-hour minimum and no travel charges, to $400 for a half day, plus travel charges. The City has released a formal Request for Quotes to interested and qualified professionals, with the goal of having interpreter services in place by the date of the Council workshop on March 16. City staff investigated the practices of the Chula Vista Elementary School District, which employs a full time interpreter for board meetings and special workshops. When interviewed about her responsibilities, she indicated that it was extremely rare for a meeting at which she was interpreting to last more than two hours. She confirmed that a longer meeting would require the services of two interpreters. To augment the school district's needs, their interpreter relies on the assistance of colleagues in neighboring school districts. The school district also has employees on staff who specialize in translating written materials and can perform limited oral interpretation when needed. FISCAL IMPACT: The cost of implementing interpreter services will depend on the length of the Council/Agency meetings and workshops at which the services are provided. The monthly cost is estimated to be approximately $5,500. This estimate is based on 7 meetings per month (four Council/RDA meetings, two CVRC meetings and one workshop), with two interpreters for an average of four hours per meeting. For the remainder of the fiscal year, the cost is estimated to be approximately $20,500. 7-2 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A PILOT PROJECT FOR SPANISH INTERPRETER SERVICES AT CITY COUNCIL, REDEVELOPMENT AGENCY AND CHULA VISTA REDEVELOPMENT CORPORATION MEETINGS AND WORKSHOPS AND APPROPRIATING FUNDS THEREFORE WHEREAS, City Council members have expressed a desire to have Spanish interpreter services available at Council and Redevelopment Agency meetings and workshops; and WHEREAS, the new City Council Chambers includes an interpreter room equipped with microphones and wireless technology that allows the interpreter inside to communicate with members of the audience wearing special headsets, which will allow non-English speaking members of the audience to understand the proceedings; and WHEREAS, the city's system does not address the need of non-English speaking members of the public who wish to address the City Council/Redevelopment Agency from the podium. To accommodate that need, the interpreter will need to leave the booth at the back of the chamber, come forward to the podium, and stand next to the individual speaking to the Council/Redevelopment Agency members; and WHEREAS, a pilot project to determine the level of demand for this service will allow us to evaluate whether those attending Council / RDA / CVRC meetings and workshops require interpretation of all or portions of these sessions, and whether one or two interpreters are likely to be needed at each meeting. WHEREAS, the City has released a formal Request for Quotes to interested and qualified professionals, with the goal of having interpreter services in place by the date of the Council workshop on March 16. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve a pilot project through the remainder of FY 2005-2006, in which professional Spanish interpreter services are made available at City Council, Redevelopment Agency and Chula Vista Redevelopment Corporation meetings and workshops. 7-3 Resolution 2006- Page 2 BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista does hereby appropriate $20,500 to the fiscal year 2006 Services and Supplies Administration budget from the available balance of the General Fund. Presented By Approved as to form by Jim Thompson Assistant City Manager ~~~C\.~ Ann Moore ' City Attorney . J:\Attomey\RESO\SPANISH INTERPRETER SERVICES.doc 7-4 ~{~ ~ ""€;~~~ - - - CITY COUNCIL MEETING AGENDA STATEMENT " ';) mY OF CHUIA VISTA Item: Meeting Date: 02121/06 RESOLUTION OF THE CHUlA VISTA CITY COUNCil APPROPRIATING $125,000 FOR PARTICIPATION AT THE CALIFORNIA PUBLIC UTILITIES COMMISSION ON ENERGY ISSUES, FROM THE AVAilABLE FUND BALANCE OF THE GENERAL FUND TO THE CONSERVATION & ENVIRONMENTAL SERVICES DEPARTMENT ITEM TITLE: REVIEWED BY: Laurie Madigan, Assistant City Manager ~ Michael Meacham, Director of Conservatio~ ~\;~ Environmental Services ~ David D. Rowlands, Jr~ Manager (4/5ths Vote: YesA No--1 SUBMITTED BY: SUMMARY On December 15, 2005 the California Public Utilities Commission (Commission) voted unanimously to approve Phase II of the Community Choice Aggregation (CCA) process. Phase II establishes the basic regulations and tariffs for submitting a CCA implementation Plan and operating a CCA. The most significant CCA issue currently before the Commission is the Renewable Portfolio Standard (RPS). The City's RPS proposal is due to the CPUC February 17, 2006 and comments are expected to conclude on March 7, 2006. Staff is submitting a resolution to fund the recent costs of continuing the City's energy work before the CPUC from October 2005 to March 7, 2006 on the Renewable Portfolio Standards and other issues affecting Community Choice Aggregation and local ratepayers. Staff will return to council in the near future with a full report on CCA and its work before the Commission, California Energy Commission (CEC) and California Independent System Operator (CAISO) regarding other local energy issues. RECOMMENDATION That Council approve the resolution appropriating $125,000 from the available balance of the general fund to the fiscal year 2006 services and supplies of the Conservation & Environmental Services budget for participating at the CPUC from October 2005 through March 7, 2006. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. 8-1 Page: 2 of 3 Meeting Date: 02121/06 BACKGROUND In June 2001 the City Council directed staff to actively participate at the CPUC in matters that may impact the City's ratepayer advocacy and environmental energy goals. This appropriation funds Staff and outside counsel costs incurred to continue to participate in workshops and proceedings before the Commission on the most essential issue regarding CCA from October 2005 to March 7, 2006. Staff has participated in workshops, Commission meetings, hearings and proceedings at the Commission, California Energy Commission and the California Independent System Operator (Regional Transmission Operator). The Staff and City officials have participated in meetings with Commissioners, staff and other stakeholders to pursue environmental, cost and quality of service issues that are important to the City's residential and business consumers. At Council's direction, the City's participation has consistently advocated very strongly for a more open, transparent and inclusive process for: transmission projects, Long Term Resource Planning (L TRP-balancing energy generation resources and transmission), Resource Adequacy Requirements (RAR - the amount of power on a system basis, SDG&E service territory, needs to meet bundled service customer load, excluding CCA and direct access (DA) customers), Local Area Reliability (LAR- the amount of generation and line capacity must be available within a specific geographic region to provide service to everyone in that area), Cost of Service (rate setting) Renewable Portfolio Standards (green energy), Climate Change and Energy Conservation/Demand Management programs for all California consumers. The appropriation will support the City's continued participation in RPS through March 7, 2006, the most important CCA issue before the commission at this time. Not including this request, the City has appropriated and expended approximately $1,500,000 for supplies and services from the general fund to implement the Energy Strategy and SDG&E negotiations from 2000 through October 2005. The expenditures have funded technical consultants, outside counsel and the City's participation at the Commission, CEC and CAISO on the fOllowing issues: the Energy Strategy, Regional Energy Strategy and Infrastructure Plan, the Otay Mesa Power Purchase Agreement (OMPPA), OMPPA-Transmission Project (including Bay Front Transmission line undergrounding), the Municipal Energy Utility Study, Study Peer Review, Phase I and Phase II of Community Choice Aggregation Rulemaking process, Support for CCA State Coalition, Renewable Portfolio Standards, Energy Efficiency, State Climate Change Committee, Department of Water Resources Cost Responsibility Surcharge Process, Long-Term Resource Plan, Opposing Cost of Service Rate Increases, and Technical Review of SDG&E Revenues/Rates and Negotiations with SDG&E. Staff will prepare a report and return to Council in the future with a recommendation and estimate of the resources needed to take the next steps in implementing the City's Energy Strategy. FISCAL IMPACT The City Council's approval of Staffs recommendation will require an appropriation from the available fund balance of the General Fund to the Conservation & Environmental 8-2 Page: 3 of 3 Meeting Date: 02121/06 Services Department in the amount of $125,000 to fund the costs of outside counsel from approximately October 2005 and to continue the work before the Commission on the Renewable Portfolio Standard proceedings through March 7, 2006. Mtm:mud/cca/cca-cas-aprop-2-21-06 8-3 RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $125,000 FOR PARTICIPATION AT THE CALIFORNIA PUBLIC UTILITIES COMMISSION ON ENERGY ISSUES, FROM THE AVAILABLE FUND BALANCE OF THE GENERAL FUND TO THE CONSERVATION & ENVIRONMENTAL SERVICES DEPARTMENT WHEREAS, in June 200 I the City Council directed staffto actively participate at the CPUC in matters that may impact the City's ratepayer advocacy and environmental energy goals; and WHEREAS, this appropriation funds Staff and outside counsel costs incurred to continue to participate in workshops and proceedings before the Commission on the most essential issue regarding CCA from October 2005 to March 7, 2006; and WHEREAS, Staff has participated in workshops, Commission meetings, hearings and proceedings at the Commission, California Energy Commission and the California Independent System Operator (Regional Transmission Operator). The Staff and City officials have participated in meetings with Commissioners, staff and other stakeholders to pursue environmental, cost and quality of service issues that are important to City's residential and business consumers; and WHEREAS, on December IS, 2005, the California Public Utilities Commission (Commission) voted unanimously to approve Phase II of the Community Choice Aggregation (CCA) process. Phase II establishes the basic regulations and tariffs for submitting a CCA implementation Plan and operating a CCA. The most significant CCA issue currently before the Commission is the Renewable Portfolio Standard (RPS); and WHEREAS, the City's RPS proposal is due to the CPUC February 17,2006, and comments are expected to conclude on March 7, 2006; WHEREAS, staff submits this resolution to fund the recent costs of continuing the City's energy work before the CPUC from October 2005 to March 7, 2006 on the Renewable Portfolio Standards and other issues affecting Community Choice Aggregation and local ratepayers. Staff will return to council in the near future with a full report on CCA and its work before the Commission, California Energy Commission (CEC) and California Independent System Operator (CAISO) regarding other local energy issues; and WHEREAS, the appropriation will support the City's continued participation in RPS through March 7, 2006, the most important CCA issue before the commission at this time. 8-4 Resolution 2006- Page 2 . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby appropriate $125,000 from the available fund balance ofthe General Fund to the fiscal year 2006 services and supplies of the Conservation & Environmental Services budget for participating at the California Public Utilities Commission from October 2005 through March 7, 2006. Presented by Approved as to form by ~mV&,i/dt An oore G City Attorney Laurie Madigan Assistant City Manager J:\Attomey\RESO\FINANCE\Appropriation for participation at the CPUC re energy issues.doc 8-5 ,.-';-- ! ___J. ;- ~{~ ~ '~----~ - -- Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista. Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO CllY Of CHUlA VISTA Friday, February 17,2006 TO: Members of the City council.:t:J 1/ -'#--'- Stephen C. Padilla, May?r.~/ FROM: RE: Eminent Domain It is my understanding that the City Clerk has decided to accept additional signatures with respect to the eminent domain initiative. Given the total circumstances and the confusion over the number of signatures required, it is imperative we keep the public's trust. Given these changes in circumstances, I see no need to wait until the 28th of February and will ask Council at the Council meeting on February 21st to place this on the June ballot. cc: Dave Rowlands, City Manager Ann Moore, City Attorney Susan Bigelow, City Clerk 10-1 RECEIVED FE8 1 7 2006 Mayor and City Couilil6 FEB 17 P 1 :01 City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91~f1......X y. .Q.~ oCHUlA VISL~ CHtSrA ~ISIA 6196915044-619~ttEm<'S OFFICE RECEIVED MEMO Friday, February 17, 2006 TO: FROM: The Honorable Mayor and City couT~ City Manager, City Attorney, City Cle'[~\ 1) -1/J ~ ),,1~/f--..!! ;- /1 / '--""" Councilmembers Stev stanedajand ohn McCann ~ I / / i I - Request for Council Action to plac~ the Eminent Domain Initiative on the v June 2006 ballot C.C. RE: As you know, a citizen's group known as Chula Vistans for Private Property Protection has gathered over 14,000 signatures in an effort to qualify an eminent domain charter change issue on the June Primary ballot. That effort fell a few hundred signatures short of qualifying based on the need to obtain petition signatures from 15% of the registered voters in the city. Yesterday, the City Clerk received a memorandum from the City . Attorney recommending that the circulators be given the opportunity to submit supplemental signatures in order to obtain the requisite 15% threshold. The events that have transpired concerning this issue dictate that we act swiftly to achieve a final resolution and allow the people to vote on this matter. While legally, there are insufficient signatures to qualify a charter change amendment, there is no doubt regarding an overwhelming desire by the community to vote on the matter this June. Also, in good faith, the circulators relied on information supplied by the city that they needed signatures of only 10% of the registered voters to qualify for the ballot. Moreover, there is a strong likelihood that the circulators will obtain the needed signatures, given the City Attorney's opinion regarding the acceptance of supplemental petitions. Therefore it is our request that when the item comes before the Council, it be specifically noticed to allow the Council to vote on placing the exact language circulated by the petitioners onto the June 2006 ballot. We believe that allowing the Council to decide this matter quickly will save the circulators and the taxpayers' money and time and achieve an outcome that is imminent. It will also demonstrate to our citizens that the Council is not attempting to circumvent the public's will. Thank you for your consideration. 10-2 ~!f? --.- '--- -- - ....:::---- = - --0::..... Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista. Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO OlY OF CHUlA VISTA Friday, February 17, 2006 TO: The Honorable Mayor and City Council ~ Councilmember Jerry RiQ.&,. Request to Expedite Council an On Eminent Domain Proposed Initiative for the June 6, 2006 Ballot FROM: RE: It is very clear to me that in a democracy the most critical component of a democracy is to allow the citizens an opportunity to express their will. It is equally clear that the Chula Vistans for Private Property Protection have offered an initiative that they believe is legally valid and represents the views of the citizens in the City ofChula Vista. I believe when over 14,000 residents sign a petition that it is incumbent upon elected officials to be immediately responsive and to ensure that an opportunity to vote upon the proposal is made available to our citizens. An on-going effort to require additional signatures and then a 30 day waiting period for review by the San Diego Registrar of V oters to validate these signatures JEOPARDIZES the possibility that the petition process to place an initiative on the ballot would qualify in time for the June ballot. As a result, I am prepared to propose placing before the voters, the Chula Vistans for Private Property Protection initiative regarding eminent domain. It has been equally assured to me by the legal counsel of the Chula Vistans for Private Property Protection that this is the initiative that they want as clearly articulated to me personally as well as stated publicly in the media. I believe it is the responsibility of the Chula Vistans for Private Property Protection initiative and their legal counsel to verify that this initiative is reflective of their concerns, is legal, and will address the issues of eminent domain for our residents. I will be available for any questions by our residents on this topic at any time. Specifically, I am requesting an item be agendized on the February 21 City Council agenda to consider placing the Chula Vistans for Private Property Protection initiative on the June 6, 2006 ballot. Also, please notify the Chula Vistans for Private Property Protection that this item will be considered at the City Council meeting of February 21, 2006. 10-3 The Honorable Mayor and City Council February 17, 2006 Page 2 Thank you very much for your consideration in support of this recommendation. cc: Dave Rowlands, City Manager Ann Moore, City Attorney Susan Bigelow, City Clerk 10-4 ~V'~ed- 2.2-I..OfD .JIa.1t ,(:) HMtM ..efMtJ PyA#{ RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PLACING A PROPOSED CHARTER AMENDMENT ON THE BALLOT TO BE CONSIDERED BY THE ELECTORATE AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 6, 2006 WHEREAS, residents of the City of Chula Vista have submitted a petition calling for a Charter proposal to be submitted to the electorate; and WHEREAS, the City Council, on behalf of the residents, wishes to place the proposed Charter proposal on the ballot at the June 6, 2006 general municipal election; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act ("CEQA") and has determined that the project is not a "project" as defined under section 15378 of the State CEQA guidelines; therefore, pursuant to section 15060 (c )(3) of the State CEQA guidelines the activity is not subject to CEQA. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby approve the placement of the citizens' Charter proposal entitled "An Initiative of the People of the City ofChula Vista Limiting the Use of Eminent Domain Powers by the City ofChula Vista," a copy of which is attached hereto and made a part hereof, on the ballot for the general municipal election to be held on June 6, 2006. Submitted by: Approved as to form: ~JwL~ I!u4 oore, City Att ey PASSED AND ADOPTED at a regular meeting of the City Council of the City of Chula Vista, California, this 21st day of February 2006 by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: Stephen C. Padilla, Mayor ATTEST: Initiative Measure to be Submitted Directly to the Voters The City Attorney has prepared the following title and summary of the chief purpose and points of the proposed measure: Title: An Initiative of the People of the City of Chula Vista Limiting the Use of Eminent Domain Powers by City of Chula Vista This initiative proposes to limit the ability of the Chula Vista City Council to utilize the tool of eminent domain to take private property to address economic blighting conditions. It will amend the Charter of the City to add Section 305.5 and 305.6 regarding prohibited acts. This measure would prohibit the City Council from taking any action or supporting any action of any other agency seeking to condemn private property for private redevelopment purposes. This will prohibit the City from utilizing e";runent domain process to make property available for private development. This measure will require the City to submit to the voters at a general municipal election any matter where the City desires to utilize eminent domain on private property except for public improvement projects. The City will be able to use the eminent domain process for public improvement projects provided the City holds or uses the property taken for public purposes for a period often years prior to sale, lease, transfer or other disposition of the property. This initiative will require that any amendments to its provisions may only be made by a vote of the people at a City election. The above is a summary ofthe terms of the proposed initiative by the City Attorney as required by Elections Code Section 9203; it does not reflect any legal analysis or opinion of the City Attorney concerning the proposed measure. 10-6 PETITION FOR SUBMISSION TO VOTERS OF PROPOSED . AMENDMENT TO THE CHARTE?- OF THE CITY OF CHULA VISTA To the city council of the City ofChula Vista: We the undersigned, registered and qualified voters of the State of California, residents ofthe City of Chula Vista, pursuant to Section 3 of Article XI of the California Constitution and Chapter 2 (commencing with Section 34450) of Part 1 of Division 2 of Title 4 of the Government Code, present to the city council of the city this petition and request that the following proposed amendment to the charter qf the city be submitted to the registered and qualified voters of the city for their adoption or: ejection at an election on a date to be determined by the city council. The proposed charter amendment reads as follows: PRIVATE PROPERTY PROTECTION ACT Section 1. Purpose and Findings - No Taking of Private Property for Private Re- Development A. This charter amendment is intended to protect the rights of owners of property within the City of Chula Vista. . B. The United States Supreme Court has ruled that cities and redevelopment agencies may take private property solely for the purpOSt; of redeveloping the property by transferring through sale, lease or other means to the control or management of private persons for private use and profit. C. The citizens of Chula Vista recognize that the State legislature regulates powers of redevelopment agencies to condemn land for the purpose of economic redevelopment, but the citizens have the ability to stop their City Council from taking such action and from supporting the action of any other agency seeking to condemn of private property for private redevelopment and profit. D. The citizens ofChula Vista hereby exercise their rights to restrict their City, acting through its City Council, from carrying out, contributing to or facilitating the taking of private property from the citizens of Chula Vista for the purpose of turning that property over to the control, use, exploitation or management by a corporation or other business entity for private use or profit, or redevelopment without a vote of the citizens of the City ofChula Vista. Section 2. Amendment of the Charter Section 305.5 and 305.6 are hereby added to the Charter of the City ofChula Vista to read as follows: 2 10-7 305.5 Limitations on Powers of EmineJ]t Domain Eminent domain is not to be used to further private economic development. The City of Chula Vista shall not initiate or participate in any proceedings, or take any action to condemn private property for the purpose of making such property available for private development, nor shall the City participate, directly or indirectly, in such takings. "Participation" means contributing, lending, providing, pledging, or foregoing, any funds, property, credit, in-kind services, or incurring any debt or lease obligation, or providing any other thing of value to any agency, organization, or project. Notwithstanding these prohibitions, the City ofChula Vista may participate in proceedings to condemn private property for the purpose of making such property available for private development if such participation is approved by a majority of the voters in the City. Section 305.6 Minimum Public Use Period Property acquired by the City of ChuIa Vista through the use of eminent domain after the effective date of this charter amendment must be held or used for a public use by the City for a minimum ten year period prior to sale, lease, transfer or other disposition by the City. Section 3. Implementation A. Upon effective date of this initiative, the provisions of this initiative shall be inserted into the Charter as an amendment thereof. Any provisions of City law inconsistent with the amendment inserted shall be unenforceable to the extent of the inconsistency. B. This initiative shall not affect condemnation actions initiated by adoption of a resolution of necessity prior to the date this initi"tive was submitted to the City for circulation. C. In the event that the City Cotincil desires to condemn private property for other than traditional public improvements, and desires to condemn private property for economic development, then the City Council shall set the matter for public vote. D. The City Council shall set any election required by Section D at the next available general municipal election. E. This amendment is in no way intended to restrict the City's ability to freely negotiate real property transactions with any paicy. Section 4. Construction. Nothing in this initiative shall be construed to require more than a simple majority vote for the adoption of this initiative or for the approval of any future measure required by this initiative. 3 10-8 Section 5. Severability. laws. If any word, sentence, paragraph, subparagraph, section or portion of this initiative is declared to be invalid by a court, the remaining words, sentences, paragraphs, subparagraphs, sections and portions are to remain valid and enforceable. - Section 6. Amendment or Repeal. This initiative may be amended or repealed only by the voters at a City election. Section 7. Effective Date. Pursuant to the State of California Municipal Elections Code section 9217, if a majority of the voters voting on a proposed ordinance vo~e in its favor, the ordinance shall become a valid and binding ordinance of the city. The ordinance shall be considered as adopted upon the date that the vote is declared by the legislative body and shall go into effect 10 days after that date. 10-9 Ifpn? /0 ~~~ -.- "-- -- ~~-- = - - - Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO CIN OF CHUIA VISTA Tuesday, February 21, 2006 TO: City of Chula Vista Clerks Office FROM: The Honorable Mayor & City Council Zaneta Encarnacion, constituen~ices Manager, City of Chula Vista Lily Cesena, Office Specialist 1(!1' Chula Vista Residents - In favor of placing Eminent Domain on a Ballot COPY TO: RE: Caller: Chula Vista, Ca 91910 Please contact me should you have a question. Thank you. LC I}€m 10 ~~f? -.- . - -- ~~--:;: Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO CllY OF CHULA VISTA Tuesday, February 21, 2006 TO: City of Chula Vista Clerks Office COPY To: The Honorable Mayor & City Council Zaneta Encarnacion, Constituent Services Manager, City of Chula Vista FROM: Lily Cesena, Office Specialist (jjiJ RE: Chula Vista Residents - In favor of placing Eminent Domain on a Ballot Caller: Chula Vista, Ca 91911 Please contact me should you have a question. Thank you. LC J=lem 10 ~~~ -.- '~~::;j:= - - - - - - -- Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO Tuesday, February 21, 2006 TO: City of Chula Vista Clerks Office COpy TO: The Honorable Mayor & City Council Zaneta Encarnacion, Constituent Services Manager, City of Chula Vista FROM: Lily Cesena, Office Specialist rIP RE: Chula Vista Residents - In favor of placing Eminent Domain on a Ballot Caller: Robert Causton Chula Vista, CA 91910 Please contact me should you have a question. Thank you. LC IkfY7 /0 ~ If?. -f!- ~~--= ~- -- Mayor and City Council City Of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 619.691.5044 - 619.476.5379 Fax MEMO CllY OF CHULA VISTA Tuesday, February 21,2006 TO: City of Chula Vista Clerks Office COPY To: The Honorable Mayor & City Council Zaneta Encarnacion, Constituent Services Manager, City of Chula Vista FROM: Lily Cesena, Office Specialist +l- Chula Vista Residents - In favor of placing Eminent Domain on a Ballot RE: Caller: ~ years old and handicapped Chula Vista, Ca 91910 Please contact me should you have a question. Thank you. LC Leticia Lazo ~._~~_._~.,-_.--_..-.-.,.".. From: Jane Dale [sloandale@earthlink.net] Sent: Tuesday, February 21, 2006 3'59 PM To: CityClerk Subject: Council Meeting tonight Attention: Donna Morris As I am unable to attend the council meeting this evening, I would very much appreciate your conveying to the council members that I am in favor of allowing the citizens of Chula Vista the opportunity to vote on "Eminent Domain", Thanks you, Jane Dale Chula Vista Jane Dale sloandale@earthlink.net EarthLink Revolves Around You. 2/21/2006 Item 10 RECEIVED Page I of I '06 FEB 21 P 4 :03 G[[ Y OF CHULA VIS 1 A ~TY CLERK'S OFFICE ~~.~ BURKE, WILLIAMS & SORENSEN, 'Li::p' 70 I "8" Street - SUite 1790 San Diego. California 92101-8 J 42 voice 6 J 9.615.6672 - fax 619.615.6673 www.bwslaw.com Our Fila No: 04859-0001 ycalderon@bwslaw.com February 21,2006 The Honorable Steve Padilla and Members of the City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 9191 0 Re: Proposed Charter Amendment to the Citv of Chula Vista Charter Honorable Mayor and Members of the City Council: As you are now aware, we were retained by the Chula Vistans for Private Property Protection (hereinafter, the .Committee") to review the City's rejection of ballot initiative and the City's refusal to accept additional signatures for that initiative. We are pleased with the City's decision to accept the additional signatures and, in the alternative, to consider placing the charter amendment on the ballot for consideration by the voters and resident of Chula Vista. It is our understanding from those that drafted the language for the Charter Amendment and from the language itself that the intent of the Amendment is not to limit the City of Chula Vista's eminent domain powers for the acquisition of property for traditional govemmental and public uses. Rather, the intent is to preclude the City from using the power of eminent domain to take property for purely economic development purposes. Furthermore, it also precludes the City from directly or indirectly participating in any taking of property by any other agency or organization that purports to be engaging in such taking for private economic development. Presumably, this is intended to preclude the City from participating directly or indirectly with the City's redevelopment agency when taking property for redevelopment purposes. To the extent that a city has the authority under Government Code Section 37350.5 to use eminent domain for private economic development, the Charter Amendment limits the City's ability to do so. The Amendment is also limited to only those circumstances where private property is taken from one private property owner to be transferred to another for economic development purposes. In the event the City desired to exercise the power of eminent domain for economic development purposes, the City would be required to seek the approval of the voters of the City of Chula Vista prior to doing so. Los Angeles - Inland Empire - Orange County - San Diego - San Jose - Ventura County . BURKE. WILLIAMS & SORENSEN, LlP The Honorable Steve Padilla and Members of City Council February 21, 2006 Page 2 I have reviewed the Charter Amendment. It is my opinion that the Charter Amendment would withstand constitutional and statutory scrutiny. I understand the City has retained the services of two law firms to review the Charter Amendment, Rutan & Tucker and Best, Best & Krieger. I remain available to discuss any questions or potential issues that may be identified by the law firms retained by the City. On behalf of the Chula Vistans for Private Property Protection, we urge you to place this initiative on the ballot for the June election cycle. Very truly yours, BURKE, WIlliAMS & SORENSEN, LLP ~$ SD #4810-4779-5456 v1 ~ : FOLEY February 21, 2006 FOLEY & LARDNER LLP ATTORNEYS AT LAW 402 W. BROADWAY, SUITE 2300 SAN DIEGO. CA 92101.3542 619.234,6655 TEL 619.234.3510 FAX www.foley.com WRITER'S DIRECT LINE 619.685.6426 gmoser@foiey.com EMAll CLIENT/MATTER NUMBER 1078410104 The Honorable Steve Padilla and City Council Members City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: Legality of CVPPP Initiative Petition Honorable Mayor and City Council Members: On behalf of Chula Vistans for Private Property Protection, we have been asked to explain the legal basis for the initiative known as the "An Initiative of the People of the City of Chula Vista Limiting the Use of Eminent Domain Powers by the City of Chula Vista" (''the Initiative") which you are considering. Since the initiative is legally sound and supported by thousands of Chula Vista citizens, we urge you to place the measure on the ballot this June. What does the Initiative do? First, the Initiative is drafted to allow the continued use of eminent domain by the City of Chula Vista to acquire property for traditional governmental uses, many of which are enumerated in the Initiative. It also is intended to limit the City's power to support the use of condemnation in aid of economic development purposes to projects which the voters have approved. This restriction on the use of eminent domain is intended to prevent the abuse of such power. Nothing in the Initiative is intended to broaden the City's eminent domain authority. As written, the Initiative does not restrict the City's right to seek private property for public purposes, including parks, fire stations, public streets and other public facilities and improvements. In conditioning the use of city resources to support condemnations in aid of private development, the Initiative is similar to the City's existing commitment not to take property which is zoned for residential use. The City Council has already found this type of limitation on the use of its eminent domain authority (and that of its redevelopment agency) to be legally appropriate. The Initiative ensures public involvement in decisions to promote private developments at the potential expense of other private citizens. The right of citizens to exercise iniuative power is guaranteed by the California Constitution and is "one of the most precious rights of our democratic process." Coalition for Fair Rent v. Abdelnour, 107 Cal.App.3d 97, 103-104 (1980). Statutes regulating that power are liberally construed in favor of its broadest exercise. Indeed, the United States Supreme Court has held time and again that "petition circulation... is 'core political speech'" protected by the First Amendment free speech guarantee. BOSTON BRUsselS CHICAGO DETROIT JACKSONVILLE LOS ANGELES MADISON MILWAUKEE NEW YORK ORLANDO SACRAMENTO SAN DHiGO SAN DIEGO/DEL MAR SAN F'RANCISCO SiLICON VALLEY TALLAHASSEE TAMPA TOt<.VO WASHINGTON, D.C, WEST PALM SEACH SOCA_282809.1 : FOLEY Honorable Steve Padilla and City Council February 21, 2006 Page 2 TIle Initiative complies with all existing requirements for a valid initiative, as well as limitations on their use. First, consistent with the California Constitution, the Initiative involves only a single-subject: the future use of eminent domain in Chula Vista. See Cal. Const. art. II, S 8(d) (an initiative must regard a single-subject); Devita v. Napa County, 9 Cal. Rptr. 2d 699 (1995) (an initiative may apply only to legislative acts.) Second, the Initiative complies with linlitations on initiatives and referendums articulated by the California courts. Specifically, the Initiative does not trench on ground which has been comprehensively addressed by state law. See e.g., Committee of Seven Thousand v. Superior Court, 45 Ca1.App.3d 491 (1988). Nor does the Initiatives impair any "essential governmental function," such as the management of the City's fiscal powers. See City of Atascadero v. Daly, 135 Ca1.App.3d 466 (1982). While the State's power of eminent domain derives from the California Constitution, Chula Vista can only exercise such power when and as expressly authorized by law. Under the City ofOaklandv. Oakland Raiders, 32 CaL3d 60 (1982), that power is quite broad, and can be used for any public purpose, which means any use that concerns the whole community or promotes a legitimate object of government. Government Code g31350.5 provides the statutory authority for the City Council to exercise powers of eminent domain. However, those powers are not unlimited, and the City must fulfill a variety of requirements in exercising its authority. (E.g., Code ofCiv. Proc. S 1230.010 et seq.; Gov. Code S7260, et seq.) Nothing in any of those statutes preempt local ordinances regarding when the City Council may elect to use eminent domain as a matter oflocal policy. Nor do they describe what kind of involvement the public should have in decision making regarding when condemnation is appropriate. The citizens of Chula Vista are thus entitled to enact legislation regarding the proper use of the City's powers in support of a project requiring condemnation via an initiative. Moreover, the limitations inlposed by the Initiative do not place significant constraints on the ability of the City Council to manage its fiscal affairs. The City Council is still able to take private property for public improvements. It only imposes an additional requirement before the City Council may purposely take, or aid in the taking of property for private economic development. See e.g., DeVita v. Coun(y of Napa, 9 CaI. 4th 163 (1995) (approving a local initiative that preserved agri(,'lllturalland.) The courts have previously upheld such requirements. For eXanlple, in Santa Clara County Local Transportation Authority v. Guardino, 11 CaL4th 220, 240 (1995), the Calitomia Supreme Court upheld a statewide initiative that required local agencies to submit special taxes to voters for two-thirds approval. In sum, the Initiative deals with a single subject of local concern, and leaves the City Council free to manage the provision of all municipal services and municipal affairs and finances. Rather, it sinlply augments existing local policies regarding the use of the City's eminent domain powers, and support of eminent domain by other agencies, including its redevelopment agency. The constitutional right to initiative power embodies the principle that "all power of government ultimately resides in the people." The Initiative submitted to the City Clerk is a lawful proposal conditioning only certain controversial uses of eminent domain powers in Chula Vista. SDCA_282809.1 : FOLEY Honorable Steve Padilla and City Council February 21,2006 Page 3 Only where property is to be taken from one private property owner to be transferred to another for economic development purposes which benefit private developers does the Initiative require voter approval. Accordingly, to further the right ofthe people to decide upon these important matters in the future, this City Council should place the Initiative on the ballot. Sincerely, .<? _.- .--::::::: , <"~-- -- .---~ ,c ____ -_ Gregory V. Moser SDCA_282809.1