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HomeMy WebLinkAboutSCRWA - State Water Resources Control Board - Prop 50 Water Recycling Grant Program FOR STATE USE ONLY DGS REGISTRATION NO. 3Q4004olo llUq5(o.1 PROPOSITION 50 WATER RECYCLING GRANT PROGRAM GRANT AGREEMENT BETWEEN THE STATE WATER RESOURCES CONTROL BOARD AND SOUTH COUNTY REGIONAL WASTEWATER AUTHORITY South Santa Clara County Recycled Water Service Expansion-Immediate Term Project AGREEMENT NO.05-713-550-Gl This Grant Agreement is made between the State of California acting by and through the State Water Resources Control Board, hereafter referred to as the "SWRCB", and South County Regional Wastewater Authority, a local public agency, hereafter referred to as the "Grantee". WHEREAS: 1. The following provision(s) authorize the SWRCB to enter into this type of Grant Agreement: Water Code: S 79550(g) (Proposition 50 Water Recycling) 2. The Grantee has applied for a grant and has been determined by the SWRCB to be eligible for a grant pursuant to applicable State laws and regulations; and 3. The SWRCB, pursuant to the Preliminary Funding Commitment, Division of Financial Assistance (DFA) Item No. 2006-07, approved on January 26,2006, and SWRCB Delegation Resolution No. 200300122007-0004, approved on Juno 18, 2003Januarv 18. 2007, has authorized grant funding for the Project hereafter described. NOW, THEREFORE, it is agreed as follows: 1. The Project generally consists of installing recycled water distribution pipeline. construction of a three million (3,000,000) gallon reservoir, three million (3,000,000) gallon per day (MGD) pump station, and expansion of the tertiary treatment system to nine (9) MGD, for the benefit of the Grantee. 2. The maximum grant amount is two million two hundred twonty fivo thous~nd 1\\'0 hundred fifty doll3rs ~nd no Geflts--one million nine hundred forty two thousand nine hundred twenty five dollars and no cents ($2,225,250.00$1.942.925.00). 3. Name: Sh~hl3 F3r~hn~kClaudia Villacorta, Grant Mana er Address: 1001 I Street, 16 Floor Sacramento, CA 95814 Phone: 916 341~5735 Fax: 916 341-5707 e-mail: SF~r3hn~kcvillacortawaterboards.ca. Direct all inquiries to: State Water Resources Control Board ov Grantee: South County Regional Wastewater Authorit Section/Unit: Attention: Richard Smelser, Grant Contact Address: 1500 Southside Drive Gilro . Ca 95020-6197 Phone: 408 846-0202 Fax: e-mail: rsmelserci.ilro.ca.us South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 2 of 14 The SWRCB's Grant Manager, or designee, may perform any and all acts that could be performed by the SWRCB Project Manager under this Agreement. All communications relative to this Agreement shall be given to the SWRCB Project Manager. :J:., ( " All communications given to the Grant Contact shall be as binding as if given to the Grantee. Each party may change its Project Representative upon written notice to the other party. The Grantee's Authorized Representative shall be the representative authorized to execute this Agreement and any subsequent amendments. 4. Incorporation of Documents. This Agreement incorporates the following documents: 4.1 Exhibit A, Scope of Work; 4.2 Exhibit B, Invoicing, Budget Detail and Reporting Provisions; 4.3 Exhibit C, SWRCB General Conditions; and 4.4 Exhibit D, Special Conditions. 5. The Grantee accepts and agrees to comply with all terms, provisions, conditions, and commitments of this Agreement, including all incorporated documents, and to fulfill all assurances. declarations, representations, and commitments made by the Grantee in its application, accompanying documents, and communications filed in support of its request for grant funding. The Grantee shall comply with and require its contractors and subcontractors to comply with all applicable laws, policies and regulations. 6. The term of the Agreement shall begin on January 26, 2006 and continue through Project completion plus twenty-three (23) years unless otherwise terminated or amended as provided in the Agreement. Project completion shall be no later than March 31, 2008. ve executed this Agreement on the dates set forth below. ~rfA /~L ~M BY:Esto5~n ^~~~::l' Chiof " Barbara Evoy. Deputy Director Division of J\dministr~tivo Sorvicos Division of Financial Assistance State Water Resources Control Board Date t/;-Jn I ped/Printed Name ~u+ron-~fvbnA~r Title 5/ ~, 2.{X)'7 Date Reviewed by41 Office of Chief Counsel Date: (co . B." flY/ South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 3 of 14 EXHIBIT A - SCOPE OF WORK 1 . Work To Be Performed by Grantee: All work under this Grant Agreement shall be performed in accordance with the "Facilities Plan Approval" Letter dated January 6,2006 and any amendments thereto, SWRCB "Preliminary Funding Commitment", DFA Item No. 2006-07 dated January 26,2006, and Project construction plans and specifications approved by the SWRCB. If the Notice to Proceed to Construction is not issued by June 30, 2006, this Grant Agreement shall immediately and automatically terminate, unless a time extension of up to ninety (90) days is approved. Documents referenced above are hereby incorporated into this Grant Agreement in their entirety. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 4 of 14 EXHIBIT B - DISBURSEMENT, BUDGET DETAIL AND REPORTING PROVISIONS 1. Request for Disbursement 1.1 An original Disbursement Request (Form 260) along with an original Grantee invoice shall be submitted to the SWRCB's Disbursement Coordinator. The Grantee may submit disbursement requests initially after this Agreement has been executed and subsequently not more frequently than every thirty (30) calendar days. Also required for disbursement of funds for Construction projects is a Construction Spreadsheet (Form 259). All disbursement forms and supporting documentation must be completed in accordance with the supplied instructions. All documents must have original signatures and dates (in ink) by Grantee's Authorized Representative, designee, or Project Director. Final disbursement requests shall be clearly marked 'FINAL" and submitted NO LATER THAN April 30, 2008. The address for submittal is: SWRCB, Division of Financial Assistance Attention: Disbursement Coordinator 16th Floor, Administration Unit P. O. Box 944212 Sacramento, CA 94244-2120 Street Address: 1001 I Street, 16th Floor Sacramento, CA 95814 1.2 Payment will be made only after receipt of a complete, adequately supported, properly documented and accurately addressed Form260. Forms received by the SWRCB that are not consistent with the approved format will cause delay in disbursement. In the event of a delayed disbursement, the SWRCB's Disbursement Coordinator will notify the Grantee. Full payment will not be made until the issue(s) for the delay are resolved. Failure to use the address exactly as provided above may result in return of the invoice or payment request to the Grantee. Payment shall be deemed complete upon deposit of the payment, properly addressed, postage prepaid, in the United States mail. The SWRCB's Grant Manager must approve all payments. 1.3 Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner which is in violation of or in conflict with Federal or State laws, rules, or regulations, or which may require any rebates to the Federal Government, or any loss of tax-free status on State bonds, pursuant to any Federal statute or regulation. 1.4 Grantee shall use disbursement amounts to pay outstanding costs incurred immediately, if Grantee has not already paid such costs. 2. Budget Contingency Clause The maximum amount to be encumbered under this Agreement for the 200G~-06 fiscal year ending June 30, 2006 shall not exceed 1\'10 million two hundred twenty fivo thous~nd two hundred fifty dolbrs ~nd no cants one million nine hundred forty two thousand nine hundred twenty five dollars and no cents ($2,225,250.00$1.942.925). The Grantee agrees to pay any and all costs associated with the completion of the Project, including without limitation, any and all Project costs exceeding the SWRCB approved grant amount. If federal or other state funding assistance for Project costs is made available, the Grantee may retain all federal or other state funds received up to an amount that equals the Grantee's local share of Project costs. Any excess funds received, up to the total amount of the SWRCB grant funds received, shall be remitted to the SWRCB to the extent not prohibited by the requirements of the other funding sources. Any residue shall be the property of the Grantee. South County Regional Wastewater Authority II SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 5 of 14 Upon execution and delivery of this Agreement, and award of a construction subcontract or commencement of construction by a force account, the Grantee may request disbursement of funds based on eligible construction costs incurred. Grant Project Funds will be disbursed to the Grantee upon receipt of Disbursement Request (Form 260) duly completed and executed by the Grantee for incurred costs consistent with the Final Plans and Specifications Approval Letter. Only costs incurred in accordance with Water Recycling Funding Program (WRFP) Guidelines dated October 21, 2004 are eligible for reimbursement under this Agreement. Disbursement requests shall not be submitted more frequently than every thirty (30) days. The Grantee may request a grant allowance for engineering, legal, and construction management costs for the purposes of design and construction of the Project. Legal costs incurred for Project-related litigation are not reimbursable. The eligible allowance shall be at most fifteen percent (15%) of the eligible construction costs, provided the allowance does not exceed the actual costs incurred for the purposes of the allowance or of other purposes associated with the design or construction of the Project. For purposes of this provision, "construction cost" means the cost of erecting, installing, placing, altering, remodeling, improving, or extending facilities, whether accomplished by subcontract or force account. The allowance provided for herein shall be the total amount allowed under this Agreement for engineering, legal, and construction management of the Project, regardless of the actual costs thereof. The allowance shall be disbursed as part of each disbursement request and shall not exceed fifteen percent (15%) of the eligible construction costs for that disbursement request. If the State Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of the SWRCB to make any payments under this Agreement. In this event, the State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Agreement and Grantee shall not be obligated to perform any provisions of this Agreement. Nothing in this Agreement shall be construed to provide the Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State, or offer an Agreement amendment to Grantee to reflect the reduced amount. 3. Line Item Budget Description Grant Amount Construction $ 1,935,000 $ 1.689 500 Engineering, Legal, and Construction $ 290,250 Management $ 253.425 Total $ 2,225,250 $ 1 942 925 4. Reports. 4.1 Grantee shall complete a one (1) page Grant Summary Form within three (3) months of the Agreement execution http://www.waterboards.ca.qov/fundinq/docs/qrantinfo/qrantsum.doc. A hard copy shall be submitted to the Grant Manager and an electronic copy for posting on the SWRCB website. 4.2 Grantee shall submit quarterly progress reports/construction status reports to the SWRCB's Grant Manager by the end of the calendar quarter (March, June, September, and December). The Agency agrees to expeditiously provide, during construction of the Project, status reports on the construction of the Project no less frequently than quarterly, starting with the issuance of the Notice To Proceed to the construction contractor. At a minimum the reports will contain the following information: a summary of South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 6 of 14 progress to date including a description of progress since the last report, percent construction complete, percent contractor invoiced, and percent schedule elapsed; a listing of change orders including amount, description of work, and change in contract amount and schedule; and any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions. 4.3 Every three (3) months (quarterly) during the work performed under Exhibit A section of this Agreement, the Grantee shall develop and submit to the Grant Manager expenditure/invoice projections for future quarters to enable funding to be available for payment of invoices. 4.4 The Grantee shall submit annual reports to the SWRCB for a period commencing with completion of construction, as determined by the SWRCB, through one (1) full year after all proposed recycled water users included in the Project are connected for service (minimum five [5] years). Reports will be submitted in hard copy and electronically. The first annual report is due on February 28th following the first complete calendar year of operation and shall cover the period from the completion of construction through the end of the first full calendar year thereafter. Subsequent annual reports are due by February 28th following the year covered. The annual reports shall be prepared in accordance with the "Water Reclamation Loan Program Guidelines for Annual Progress Reports", dated September 2002, or any successor guidelines. The reports shall briefly review the operation of the Project during the preceding year, identify current users and User Contracts, provide monthly Project water deliveries to each user, the amount of fresh/potable water usage offset by the use of recycled water, and monthly amounts of water from each source delivered through Project facilities, list the funds received from other State and federal agencies for this Project during the period by agency, the amount, whether grants or loans, and a description of the facilities, components, and items the funds were used for; list the power and maintenance costs associated with the Project for the period, indicate current plans and programs for use of any Project capacity not under contract, summarize Project financial experience, describe compliance with any special conditions of this contract, and provide such other information as may be reasonably required to evaluate Project benefits and use of Project facilities. 4.5 Final Costs and Audit. Within one hundred twenty (120) days after Completion of Construction, the Grantee agrees to provide to the SWRCB a final project summary report on the Project. The summary shall include at a minimum; 4.5.1 Brief description of the Project as completed, its features, capacity, current and planned recycled water uses and users; 4.5.2 Total Eligible Project Costs and total Project costs including change orders; 4.5.3 The amount of any unexpended Grant Project Funds; 4.5.4 The total amount of assistance funds received from all sources and the allocation of those funds to the Project's costs; 4.5.5 The amount of interest earned, if any, on Grant Project Funds before expenditure on incurred Project costs. If no interest has been earned, this fact shall be expressly stated; 4.5.6 The report shall be accompanied by such other financial information as may be reasonably required by the SWRCB to verify Grantee entitlement to assistance, to assure program integrity of the WRFP. The Authorized Representative shall certify the report as correct, that costs attributed to the Project have been incurred in the amounts and for the purposes represented, and that the work or material for which payment has been requested is satisfactory. Any change in the information supplied shall be promptly reported to the SWRCB. 4.6 The Grantee agrees to expeditiously provide, during work on the Project and throughout the term of this Agreement, such reports, data, information, and certifications as may be reasonably required by the SWRCB. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 7 of 14 5. Payment of Project Costs. The Grantee agrees that it will provide for payment of its full share of Project costs, and that all costs connected with the Project will be paid by the Grantee on a timely basis. y .r \ 6. Audit Disallowances. The Grantee agrees it shall return any audit disallowances to the SWRCB. 7. Project Certification. One (1) year after initiation of operations, the Grantee shall certify to the SWRCB whether or not the Project, as of that date, meets the Project performance standards agreed upon as part of final plans and specifications approval, including the quality of recycled water and the expected deliveries of recycled water during the first year of Project operation. If the Grantee cannot certify that the Project meets such performance standards at that time, the Grantee will, at its own expense and in a timely manner, expeditiously make all needed corrections and perform all additional work necessary to allow affirmative certification for the Project. 8. Project Access. The Grantee agrees to ensure that the SWRCB, or any authorized representative thereof, will have suitable access to the Project site at all reasonable times during Project construction and thereafter for the useful life of the Project. 9. Project Deliveries. The Grantee agrees to obtain sufficient recycled water users connected to Project facilities to make deliveries of recycled water in accordance with the schedule specified in Exhibit A. South County Regional Wastewater Authority - SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 8 of 14 EXHIBIT C SWRCB GENERAL CONDITIONS 1. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in the Agreement is binding on any of the parties. 2. APPROVAL: The Grantee will not proceed with any work on the Project until authorized in writing by the SWRCB. 3. ASSIGNMENT: This grant is not assignable by the Grantee, either in whole orin part, without the consent of the SWRCB . 4. AUDIT: Grantee agrees that the awarding department, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The Grantee agrees to maintain such records for a possible audit for a minimum of twenty-three (23) years after final payment, unless a longer period of records retention is stipulated. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Grantee agrees to include a similar right of the State to audit records and interview staff in any contract related to performance of this Agreement. 5. BONDING: Where contractors are used, Grantee shall not authorize construction to begin until each such contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $20,000.00. 6. CEQNNEPA: No work that is subject to the California Environmental Quality Act (CEQA) or National Environmental Policy Act (NEPA) may proceed under this Agreement until documents that satisfy the CEQNNEPA process are received by the Grant Manager and the SWRCB has given environmental clearance. No work that is subject to an Environmental Impact Report or a Mitigated Negative Declaration may proceed until and unless approved by the G-AiefDeputy Director of the SWRCB's Division of Financial Assistance (Division). Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. 7. COMPLIANCE WITH LAW, REGULATIONS, ETC.: The Grantee agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements. Without limitation of the foregoing, the Grantee agrees that, to the extent applicable, the Grantee will comply with the provisions of the adopted environmental mitigation plan for the term of this Agreement, or the useful life of the Project, whichever is longer. 8. COMPUTER SOFTWARE: The Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws. 9. CONTINUOUS USE OF PROJECT; LEASE OR DISPOSAL OF PROJECT: The Grantee agrees that, except as provided in the Agreement, it will not abandon, substantially discontinue use of, lease, or dispose of the Project or any significant part or portion thereof during the useful life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all or any portion of all remaining grant Project funds covered by this Agreement together with accrued interest and any penalty assessments which may be due. 10. DAMAGES FOR BREACH AFFECTING TAX EXEMPT STATUS: In the event that any breach of any of the provisions of this Agreement by the Grantee shall result in the loss of tax exempt status for any state bonds, or if such breach shall result in an obligation on the part of the State to reimburse the federal government by reason of any arbitrage profits, the Grantee shall immediately reimburse the state in an amount equal to any damages paid by or loss incurred by the state due to such breach. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 9 of 14 11. DISPUTES: Grantee shall continue with the responsibilities under this Agreement during any dispute. Any dispute arising under this Agreement which is not otherwise disposed of by agreement shall be decided by the Gffie.fDeputy Director of the Division, or his or her authorized representative. The decision shall be reduced to writing and a copy thereof furnished to the Grantee and to the SWRCB's Executive Director. The decision of the Division shall be final and conclusive unless, within thirty (30) calendar days after mailing of the Division decision to the Grantee, the Grantee mails or otherwise furnishes a written appeal of the decision to the SWRCB's Executive Director. The decision of the SWRCB's Executive Director shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal under this clause, the Grantee shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Grantee shall continue to fulfill and comply with all the terms, provisions, commitments, and requirements of this Agreement. This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the SWRCB, or any official or representative thereof, on any question of law. 12. FISCAL MANAGEMENT SYSTEMS AND ACCOUNTING STANDARDS: The Grantee agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit tracing of grant funds to a level of expenditure adequate to establish that such funds have not been used in violation of state law or this Agreement. The Grantee further agrees that it will maintain separate Project accounts in accordance with generally accepted accounting principles. 13. GOVERNING LAW: This grant is governed by and shall be interpreted in accordance with the laws of the State of California. 14. GRANT MODIFICATIONS: The SWRCB may, at any time, without notice to any sureties, by written order designated or indicated to be a "grant modification", make any change in Exhibit A, for the work to be performed under this Agreement so long as the modified work is within the general scope of work called for by this Agreement. including but not limited to changes in the specifications or in the method, manner, or time of performance of work. If the Grantee intends to dispute the change, the Grantee must, within ten (10) days after receipt of a written "grant modification", submit to the SWRCB a written statement setting forth the disagreement with the change. 15. INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement. 16. INDEPENDENT ACTOR: The Grantee, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers of employees or agents of the SWRCB. 17. INSPECTION: Throughout the life of the Project, the SWRCB shall have the right to inspect the Project area to ascertain compliance with this Agreement. Grantee acknowledges that the Project records and location are public records. 18. INSURANCE: Throughout the life of the Project, the Grantee shall provide and maintain insurance against fire, vandalism and other loss, damage, or destruction of the facilities or structures constructed pursuant to this Agreement, if any. This insurance shall be issued by a company or companies admitted to transact business in the State of California. The insurance policy shall contain an endorsement specifying that the policy will not be cancelled or reduced in coverage without thirty days' prior written notice to the SWRCB. In the event of any damage to or destruction of the Project or any larger system of which it is a part, the net proceeds of insurance shall be applied to the reconstruction, repair or replacement of the damaged or destroyed parts of the Project or its larger system. The Grantee shall begin such reconstruction, repair, or replacement as expeditiously as possible and shall payout of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same shall be completed and the larger system shall be free of all claims and liens. 7, '" South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 10 of 14 19. NONDISCRIMINATION: During the performance of this Agreement, the Grantee and its contractors shall not unlawfully discriminate against, harass, or allow harassment against any employee or applicant for employment because of sex, race, religion, color, national origin, ancestry, disability, sexual orientation, medical condition, marital status, age (over 40) or denial of family-care leave, medical-care leave, or pregnancy-disability leave. The Grantee and its contractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination and harassment. 20. NO THIRD PARTY RIGHTS: The parties to this grant Agreement do not create rights in, or grant remedies to,' any third party as a beneficiary of this grant Agreement, or of any duty, covenant, obligation or undertaking established herein. 21. NOTICE: The Grantee shall promptly notify the SWRCB of events or proposed changes that could affect the scope, budget, or work performed under this Agreement. The Grantee agrees that no substantial change in the scope of the Project will be undertaken until written notice of the proposed change has been provided to the SWRCB, and the SWRCB has given written approval for such change. The Grantee shall notify the SWRCB at least ten (10) working days prior to any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by SWRCB's representatives. The Grantee shall promptly notify the SWRCB in writing of completion of work on the Project. The Grantee shall promptly notify the SWRCB in writing of any cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more and of any circumstance, combination of circumstances, or condition, which is expected to or does delay completion of construction for a period of ninety (90) days or more beyond the estimated date of completion of construction previously provided. 22. OPERATIONS & MAINTENANCE: The Grantee shall maintain and operate the facility and structures constructed or improved as part of the Project throughout the life of the Project, consistent with the purposes for which this Grant was made. The Grantee assumes all operations and maintenance costs of the facilities and structures; the SWRCB shall not be liable for any cost of such maintenance, management or operation. The Grantee may be excused from operations and maintenance only upon the written approval of the Grant Manager. For purposes of this Agreement, "operation costs" include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses. "Maintenance costs" include ordinary repairs and replacements of a recurring nature necessary to prolong the life of capital assets and basic structures, and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. 23. PERMITS, CONTRACTING, WAIVER, REMEDIES AND DEBARMENT: The Grantee shall procure all permits and licenses necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Any contractors, outside associates, or consultants required by the Grantee in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, or as are specifically authorized by the SWRCB's Grant Manager during the performance of this Agreement. Any substitutions in, or additions to, such contractors, associates, or consultants, shall be subject to the prior written approval of the SWRCB's Grant Manager. Any waiver of rights with respect to a default or other matter arising under the Agreement at any time by either party shall not be considered a waiver of rights with respect to any other default or matter. Any rights and remedies of the State provided for in this Agreement are in addition to any other rights and remedies provided by law. The Grantee shall not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549, "Debarment and Suspension". The Grantee shall not contract with any individual or organization on USEPA's List of Violating Facilities. (40 CFR, Part 31.35, Gov. Code 4477) www.epls.gov The Grantee certifies to the best of its knowledge and belief, that it and its principals: a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any federal department or Grantee; b. Have not within a three-year period preceding this Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713.;.550-Gl Water Recycling Project No.: 3224-030 Page 11 of 14 ;Yi -, 1 transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state or local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and d. Have not within a three (3)-year period preceding this application/proposal had one or more public transactions (federal, state or local) terminated for cause or default. 24. PREVAILING WAGES AND LABOR COMPLIANCE: If applicable, the Grantee agrees to be bound by all the provisions of State Labor Code Section 1771 regarding prevailing wages. If applicable, the Grantee shall monitor all agreements subject to reimbursement from this Agreement to assure that the prevailing wage provisions of State Labor Code Section 1771 are being met. The Grantee agrees to fulfill its responsibilities under Section 1771.8 of the Labor Code, where applicable. 25. PROFESSIONALS: The Grantee agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. 26. RECORDS: Without limitation of the requirement to maintain Project accounts in accordance with generally accepted accounting principles, the Grantee agrees to: a. Establish an official file for the Project which shall adequately document all significant actions relative to the Project; b. Establish separate accounts which will adequately and accurately depict all amounts received and expended on this Project, including all grant funds received under this Agreement; c. Establish separate accounts which will adequately depict all income received which is attributable to the Project, especially including any income attributable to grant funds disbursed under this Agreement; d. Establish an accounting system which will adequately depict final total costs of the Project, including both direct and indirect costs; e. Establish such accounts and maintain such records as may be necessary for the state to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and f. If Force Account is used by the Grantee for any phase of the Project, establish an account that documents all employee hours, and associated tasks charged to the Project per employee. 27. RELATED LITIGATION: Under no circumstances may a Grantee use funds from any disbursement under this Grant Agreement to pay costs associated with any litigation the Grantee pursues against the State Water Resources Control Board or any Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Grantee agrees to complete the Project funded by this Agreement or to repay all of the grant funds plus interest. 28. RIGHTS IN DATA: The Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement shall be in the public domain. The Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected, and developed under this Agreement, subject to appropriate acknowledgement of credit to the SWRCB for financial support. The Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. 29. STATE REVIEWS AND INDEMNIFICATION: The parties agree that review or approval of Project applications, documents, permits, plans and specifications or other Project information by the SWRCB is for administrative purposes only and does not relieve the Grantee of its responsibility to properly plan, design, construct, operate, maintain, implement, or otherwise carry out the Project. To the extent permitted by law, the Grantee agrees to indemnify, defend and hold harmless the SWRCB and the State against any loss or South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 12 of 14 liability arising out of any claim or action brought against the SWRCB and/or the State from and against any and all losses, claims, damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Project or the conditions, occupancy, use, possession, conduct or management of, work done in or about, or the planning, design, acquisition, installation or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the California Hazardous Waste Control Law and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein. in light of the circumstances under which they were made, not misleading with respect to any information provided by the Grantee for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement. To the fullest extent permitted by law, the Grantee agrees to pay and discharge any judgment or award entered or made against the SWRCB and/or the State with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of this Agreement. 30. SUPPLEMENTAL ENVIRONMENTAL PROJECTS: Grant Funds shall not be used for supplemental environmental projects required by Regional Boards. 31. SWRCB ACTION, COSTS, AND ATTORNEY FEES: The Grantee agrees that any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the SWRCB as a result of breach of this Agreement by the Grantee, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the SWRCB shall not preclude the SWRCB from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that the prevailing party shall be entitled to such reasonable costs and/or attorney fees as may be ordered by the court entertaining such litigation. 32. TERMINATION, IMMEDIATE REPAYMENT, INTEREST: This Grant Agreement may be terminated by written notice at any time prior to completion of the Project, at the option of the SWRCB, upon violation by the Grantee of any material provision after such violation has been called to the attention of the Grantee and after failure of the Grantee to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the SWRCB. In the event of such termination, the Grantee agrees, upon demand, to immediately repay to the SWRCB an amount equal to the amount of grant funds disbursed to the Grantee prior to such termination. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the Grantee to the date of full repayment by the Grantee. 33. TIMELINESS: Time is of the essence in this Agreement. The Grantee shall proceed with and complete the Project in an expeditious manner. 34. TRAVEL AND PER DIEM: Any reimbursement for necessary travel and per diem shall be at rates not to exceed those amounts paid to the State's represented employees under collective bargaining Agreements currently in effect. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the SWRCB. 35. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement shall continue to have full force and effect and shall not be affected thereby. 36. USEFUL LIFE OF PROJECT: For the purpose of this Agreement, the useful life of any constructed portions of this Project begins upon completion of construction and continues until fifty (50) years thereafter for pipelines and structures and twenty (20) years for all else. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-Gl Water Recycling Project No.: 3224-030 Page 13 of 14 37. VENUE: The SWRCB and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement. 38. WITHHOLDING OF GRANT DISBURSEMENTS: The SWRCB may withhold all or any portion of the grant funds provided for by this Agreement in the event that the Grantee has materially violated, or threatens to materially violate, any term, provision, condition, or commitment of this Agreement; or the Grantee fails to maintain reasonable progress toward completion of the Project. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-41 Water Recycling Project No.: 3224-030 Page 14 of 14 EXHIBIT D Special Conditions [ ] None at this time. [ X] Special conditions as follows: The Grantee hereby certifies that: 1. This Project shall be consistent with the CALFED Programmatic Record of Decision. 2. This Project complies with CEQA. 3. This Project includes a monitoring component that allows the integration of data into statewide monitoring effort, including but not limited to the SWRCB's Surface Water Ambient Monitoring Program (SWAMP), if applicable. ,.. " FOR STATE USE ONLY PROPOSITION 50 WATER RECYCLING GRANT PROGRAM GRANT AGREEMENT BETWEEN THE STATE WATER RESOURCES CONTROL BOARD AND SOUTH COUNTY REGIONAL WASTEWATER AUTHORITY South Santa Clara County Recycled Water Service Expansion-Immediate Term Project AGREEMENT NO.05-713-550-0 This Grant Agreement is made between the State of California acting by and through the State Water Resources Control Board, hereafter referred to as the "SWRCB", and South County Regional Wastewater Authority, a local public agency, hereafter referred to as the "Grantee". WHEREAS: 1. The following provision(s) authorize the SWRCB to enter into this type of Grant Agreement: Water Code: ~ 79550(g) (Proposition 50 Water Recycling) 2. The Grantee has applied for a grant and has been determined by the SWRCB to be eligible for a grant pursuant to applicable State laws and regulations; and 3. The SWRCB. pursuant to the Preliminary Funding Commitment, Division of Financial Assistance (DFA) Item No. 2006-07, approved on January 26, 2006, and SWRCB Delegation Resolution No. 2003-0042, approved on June 18, 2003, has authorized grant funding for the Project hereafter described. NOW, THEREFORE, it is agreed as follows: 1 . The Project generally consists of installing recycled water distribution pipeline. construction of a three million (3,000,000) gallon reservoir, three million (3,000,000) gallon per day (MGD) pump station, and expansion of the tertiary treatment system to nine (9) MGD, for the benefit of the Grantee. 2. The maximum grant amount is two million two hundred twenty five thousand two hundred fifty dollars and no cents ($2.225.250.00). 3. The Project Representatives during the term of this Agreement will be: State Water Resources Control Board Grantee: South County Regional Wastewater Authority Name: Shahla Farahnak, Grant Manager Name: Jay Baksa, Authorized Representative ("Project Director") Address: 1001 I Street, 16m Floor Address: 1500 Southside Drive Sacramento, CA 95814 Gilroy, Ca 95020-6197 Phone: (916) 341-5737 Phone: (408) 846-0202 Fax: (916) 341-5707 Fax: (408) 846-0500 e-mail: SFarahnaklIDwaterboards.ca.nov e-mail: ibaksalIDci.ailrov.ca.us Direct all inquiries to: State Water Resources Control Board Grantee: South County Regional Wastewater Authority Section/Unit Division of Financial Assistance Section/Unit Attention: Leo Sarmiento, Proiect Manager Attention: Richard Smelser, Grant Contact Address: 1001 I Street, 16m Floor, Address: 1500 Southside Drive Sacramento, CA 95814 Gilroy, Ca 95020-6197 Phone: (916) 341-341-5830 Phone: (408) 846-0450 Fax: (916) 341-5707 Fax: e-mail: Lsarmiento@waterboards.ca.aov e-mail: rsmelser@cLailrov.ca.us South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 2 of 14 The SWRCB's Grant Manager, or designee, may perfonn any and all acts that could be perfonned by the SWRCB Project Manager under this Agreement. All communications relative to this Agreement shall be given to the SWRCB Project Manager. All communications given to the Grant Contact shall be as binding as if given to the Grantee. Each party may change its Project Representative upon written notice to the other party. The Grantee's Authorized Representative shall be the representative authorized to execute this Agreement and any subsequent amendments. 4. Incorporation of Documents. This Agreement incorporates the following documents: 4.1 Exhibit A. Scope of Work; 4.2 Exhibit B, Invoicing, Budget Detail and Reporting Provisions; 4.3 Exhibit C, SWRCB General Conditions; and 4.4 Exhibit D, Special Conditions. 5. The Grantee accepts and agrees to comply with all tenns, provisions, conditions, and commitments of this Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and commitments made by the Grantee in its application. accompanying documents, and communications filed in support of its request for grant funding. The Grantee shall comply with and require its contractors and subcontractors to comply with all applicable laws, policies and regulations. 6. The tenn of the Agreement shall begin on January 26, 2006 and continue through Project completion plus twenty-three (23) years unless otherwise terminated or amended as provided in the Agreement. Project completion shall be no later than March 31, 2008. arties have exe uted this Agreement o~ ~atil set ~ ~- BY:~ 1 Esteban Almanza, Chief ""'- Division of Administrative Services State Water Resources Control Board Jay Baksa Grantee Typed/Printed Name Authority Manager >- ! ~ '6 / 1J~ Date ( March 15, 2006 Reviewed by: -"f1f Office of Chief Counsel Date: ~ 12-1fW Title Date South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 3 of 14 EXHIBIT A - SCOPE OF WORK 1. Work To Be Performed by Grantee: All work under this Grant Agreement shall be performed in accordance with the "Facilities Plan Approval" Letter dated January 6,2006 and any amendments thereto, SWRCB "Preliminary Funding Commitment", DFA Item No. 2006-07 dated January 26,2006, and Project construction plans and specifications approved by the SWRCB. If the Notice to Proceed to Construction is not issued by June 30, 2006, this Grant Agreement shall immediately and automatically terminate, unless a time extension of up to ninety (90) days is approved. Documents referenced above are hereby incorporated into this Grant Agreement in their entirety. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 4 of 14 EXHIBIT B - DISBURSEMENT, BUDGET DETAIL AND REPORTING PROVISIONS 1 . Request for Disbursement 1.1 An original Disbursement Request (Fonn 260) along with an original Grantee invoice shall be submitted to the SWRCB's Disbursement Coordinator. The Grantee may submit disbursement requests initially after this Agreement has been executed and subsequently not more frequently than every thirty (30) calendar days. Also required for disbursement of funds for Construction projects is a Construction Spreadsheet (Fonn 259). All disbursement fonns and supporting documentation must be completed in accordance with the supplied instructions. All documents must have original signatures and dates (in ink) by Grantee's Authorized Representative, designee. or Project Director. Final disbursement requests shall be c1ear1y marked 'FINAL" and submitted NO LATER THAN April 30. 2008. The address for submittal is: Street Address: SWRCB, Division of Financial Assistance Attention: Disbursement Coordinator 16th Floor, Administration Unit P. O. Box 944212 Sacramento, CA 94244-2120 1001 I Street, 16th Floor Sacramento, CA 95814 1.2 Payment will be made only after receipt of a complete, adequately supported, properly documented and accurately addressed Fonn 260. Fonns received by the SWRCB that are not consistent with the approved fonnat will cause delay in disbursement. In the event of a delayed disbursement, the SWRCB's Disbursement Coordinator will notify the Grantee. Full payment will not be made until the issue(s) for the delay are resolved. Failure to use the address exactly as provided above may result in return of the invoice or payment request to the Grantee. Payment shall be deemed complete upon deposit of the payment, proper1y addressed, postage prepaid, in the United States mail. The SWRCB's Grant Manager must approve all payments. 1.3 Notwithstanding any other provision of this Agreement, no disbursement shall be required at any time or in any manner which is in violation of or in conflict with Federal or State laws, rules, or regulations, or which may require any rebates to the Federal Government, or any loss of tax-free status on State bonds, pursuant to any Federal statute or regulation. 1.4 Grantee shall use disbursement amounts to pay outstanding costs incurred immediately, if Grantee has not already paid such costs. 2. Budget Contingency Clause The maximum amount to be encumbered under this Agreement for the 2000-06 fiscal year ending June 30, 2006 shall not exceed two million two hundred twenty five thousand two hundred fifty dollars and no cents ($2,225,250.00). The Grantee agrees to pay any and all costs associated with the completion of the Project, including without limitation, any and all Project costs exceeding the SWRCB approved grant amount. If federal or other state funding assistance for Project costs is made available, the Grantee may retain all federal or other state funds received up to an amount that equals the Grantee's local share of Project costs. Any excess funds received, up to the total amount of the SWRCB grant funds received, shall be remitted to the SWRCB to the extent not prohibited by the requirements of the other funding sources. Any residue shall be the property of the Grantee. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 5 of 14 Upon execution and delivery of this Agreement, and award of a construction subcontract or commencement of construction by a force account, the Grantee may request disbursement of funds based on eligible construction costs incurred. Grant Project Funds will be disbursed to the Grantee upon receipt of Disbursement Request (Fonn 260) duly completed and executed by the Grantee for incurred costs consistent with the Final Plans and Specifications Approval Letter. Only costs incurred in accordance with Water Recycling Funding Program (WRFP) Guidelines dated October 21. 2004 are eligible for reimbursement under this Agreement. Disbursement requests shall not be submitted more frequently than every thirty (30) days. The Grantee may request a grant allowance for engineering, legal, and construction management costs for the purposes of design and construction of the Project. Legal costs incurred for Project-related litigation are not reimbursable. The eligible allowance shall be at most fifteen percent (15%) of the eligible construction costs, provided the allowance does not exceed the actual costs incurred for the purposes of the allowance or of other purposes associated with the design or construction of the Project. For purposes of this provision. "construction cost" means the cost of erecting, installing, placing, altering, remodeling. improving, or extending facilities, whether accomplished by subcontract or force account. The allowance provided for herein shall be the total amount allowed under this Agreement for engineering. legal, and construction management of the Project. regardless of the actual costs thereof. The allowance shall be disbursed as part of each disbursement request and shall not exceed fifteen percent (15%) of the eligible construction costs for that disbursement request. If the State Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of the SWRCB to make any payments under this Agreement. In this event, the State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Agreement and Grantee shall not be obligated to perfonn any provisions of this Agreement. Nothing in this Agreement shall be construed to provide the Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the option to either cancel this Agreement with no liability occurring to the State. or offer an Agreement amendment to Grantee to reflect the reduced amount. 3. Line Item Budget Description Grant Amount Construction $ 1,935,000 Engineering, Legal, and Construction $ 290,250 Management Total $ 2,225.250 4. Reports. 4.1 Grantee shall complete a one (1) page Grant Summary Fonn within three (3) months of the Agreement execution http://www.waterboards.ca.aov/fundina/docs/arantinfo/arantsum.doc. A hard copy shall be submitted to the Grant Manager and an electronic copy for posting on the SWRCB website. 4.2 Grantee shall submit quarter1y progress reports/construction status reports to the SWRCB's Grant Manager by the end of the calendar quarter (March, June. September, and December). The Agency agrees to expeditiously provide, during construction of the Project. status reports on the construction of the Project no less frequently than quarter1y, starting with the issuance of the Notice To Proceed to the construction contractor. At a minimum the reports will contain the following infonnation: a summary of progress to date including a description of progress since the last report, percent construction complete, percent contractor invoiced, and percent schedule elapsed; a listing of change orders including amount, South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 6 of 14 description of work, and change in contract amount and schedule; and any problems encountered, proposed resolution, schedule for resolution, and status of previous problem resolutions. 4.3 Every three (3) months (quarter1y) during the work performed under Exhibit A section of this Agreement, the Grantee shall develop and submit to the Grant Manager expenditure/invoice projections for future quarters to enable funding to be available for payment of invoices. 4.4 The Grantee shall submit annual reports to the SWRCB for a period commencing with completion of construction, as determined by the SWRCB, through one (1) full year after all proposed recycled water users included in the Project are connected for service (minimum five [5] years). Reports will be submitted in hard copy and electronically. The first annual report is due on February 28th following the first complete calendar year of operation and shall cover the period from the completion of construction through the end of the first full calendar year thereafter. Subsequent annual reports are due by February 28th following the year covered. The annual reports shall be prepared in accordance with the "Water Reclamation Loan Program Guidelines for Annual Progress Reports", dated September 2002, or any successor guidelines. The reports shall briefly review the operation of the Project during the preceding year, identify current users and User Contracts. provide monthly Project water deliveries to each user. the amount of fresh/potable water usage offset by the use of recycled water, and monthly amounts of water from each source delivered through Project facilities, list the funds received from other State and federal agencies for this Project during the period by agency, the amount, whether grants or loans, and a description of the facilities, components, and items the funds were used for; list the power and maintenance costs associated with the Project for the period, indicate current plans and programs for use of any Project capacity not under contract, summarize Project financial experience, describe compliance with any special conditions of this contract, and provide such other information as may be reasonably required to evaluate Project benefits and use of Project facilities. 4.5 Final Costs and Audit. Within one hundred twenty (120) days after Completion of Construction, the Grantee agrees to provide to the SWRCB a final project summary report on the Project. The summary shall include at a minimum; 4.5.1 Brief description of the Project as completed. its features. capacity. current and planned recycled water uses and users; 4.5.2 Total Eligible Project Costs and total Project costs including change orders; 4.5.3 The amount of any unexpended Grant Project Funds; 4.5.4 The total amount of assistance funds received from all sources and the allocation of those funds to the Project's costs; 4.5.5 The amount of interest earned, if any. on Grant Project Funds before expenditure on incurred Project costs. If no interest has been earned, this fact shall be expressly stated; 4.5.6 The report shall be accompanied by such other financial information as may be reasonably required by the SWRCB to verify Grantee entitlement to assistance. to assure program integrity of the WRFP. The Authorized Representative shall certify the report as correct, that costs attributed to the Project have been incurred in the amounts and for the purposes represented, and that the work or material for which payment has been requested is satisfactory. Any change in the information supplied shall be promptly reported to the SWRCB. 4.6 The Grantee agrees to expeditiously provide, during work on the Project and throughout the term of this Agreement, such reports, data, information, and certifications as may be reasonably required by the SWRCB. 5. Payment of Project Costs. The Grantee agrees that it will provide for payment of its full share of Project costs, and that all costs connected with the Project will be paid by the Grantee on a timely basis. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 7 of 14 6. Audit Disallowances. The Grantee agrees it shall return any audit disallowances to the SWRCB. 7. Project Certification. One (1) year after initiation of operations, the Grantee shall certify to the SWRCB whether or not the Project, as of that date, meets the Project performance standards agreed upon as part of final plans and specifications approval, including the quality of recycled water and the expected deliveries of recycled water during the first year of Project operation. If the Grantee cannot certify that the Project meets such performance standards at that time, the Grantee will, at its own expense and in a timely manner. expeditiously make all needed corrections and perform all additional work necessary to allow affirmative certification for the Project. 8. Project Access. The Grantee agrees to ensure that the SWRCB, or any authorized representative thereof, will have suitable access to the Project site at all reasonable times during Project construction and thereafter for the useful life of the Project. 9. Project Deliveries. The Grantee agrees to obtain sufficient recycled water users connected to Project facilities to make deliveries of recycled water in accordance with the schedule specified in Exhibit A. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 8 of 14 EXHIBIT C SWRCB GENERAL CONDITIONS 1. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in the Agreement is binding on any of the parties. 2. APPROVAL: The Grantee will not proceed with any work on the Project until authorized in writing by the SWRCB. 3. ASSIGNMENT: This grant is not assignable by the Grantee, either in whole or in part, without the consent of the SWRCB . 4. AUDIT: Grantee agrees that the awarding department, the Bureau of State Audits, or their designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Agreement. The Grantee agrees to maintain such records for a possible audit for a minimum of twenty-three (23) years after final payment, unless a longer period of records retention is stipulated. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Further, Grantee agrees to include a similar right of the State to audit records and interview staff in any contract related to performance of this Agreement. 5. BONDING: Where contractors are used, Grantee shall not authorize construction to begin until each such contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract value; labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $20,000.00. 6. CEQA/NEPA: No work that is subject to the California Environmental Quality Act (CEQA) or National Environmental Policy Act (NEPA) may proceed under this Agreement until documents that satisfy the CEQAlNEPA process are received by the Grant Manager and the SWRCB has given environmental clearance. No work that is subject to an Environmental Impact Report or a Mitigated Negative Declaration may proceed until and unless approved by the Chief of the SWRCB's Division of Financial Assistance (Division). Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. 7. COMPLIANCE WITH LAW, REGULATIONS, ETC.: The Grantee agrees that it will, at all times, comply with and require its contractors and subcontractors to comply with all applicable federal and state laws, rules, guidelines, regulations, and requirements. Without limitation of the foregoing, the Grantee agrees that, to the extent applicable, the Grantee will comply with the provisions of the adopted environmental mitigation plan for the term of this Agreement, or the useful life of the Project, whichever is longer. 8. COMPUTER SOFlWARE: The Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws. 9. CONTINUOUS USE OF PROJECT; LEASE OR DISPOSAL OF PROJECT: The Grantee agrees that, except as provided in the Agreement, it will not abandon, substantially discontinue use of, lease, or dispose of the Project or any significant part or portion thereof during the useful life of the Project without prior written approval of the Division. Such approval may be conditioned as determined to be appropriate by the Division, including a condition requiring repayment of all or any portion of all remaining grant Project funds covered by this Agreement together with accrued interest and any penalty assessments which may be due. 10. DAMAGES FOR BREACH AFFECTING TAX EXEMPT STATUS: In the event that any breach of any of the provisions of this Agreement by the Grantee shall result in the loss of tax exempt status for any state bonds, or if such breach shall result in an obligation on the part of the State to reimburse the federal government by reason of any arbitrage profits, the Grantee shall immediately reimburse the state in an amount equal to any damages paid by or loss incurred by the state due to such breach. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 9 of 14 11. DISPUTES: Grantee shall continue with the responsibilities under this Agreement during any dispute. Any dispute arising under this Agreement which is not otherwise disposed of by agreement shall be decided by the Chief of the Division, or his or her authorized representative. The decision shall be reduced to writing and a copy thereof furnished to the Grantee and to the SWRCB's Executive Director. The decision of the Division shall be final and conclusive unless, within thirty (30) calendar days after mailing of the Division decision to the Grantee, the Grantee mails or otherwise furnishes a written appeal of the decision to the SWRCB's Executive Director. The decision of the SWRCB's Executive Director shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any appeal under this clause, the Grantee shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, the Grantee shall continue to fulfill and comply with all the terms, provisions, commitments, and requirements of this Agreement. This clause does not preclude consideration of legal questions, provided that nothing herein shall be construed to make final the decision of the SWRCB, or any official or representative thereof, on any question of law. 12. FISCAL MANAGEMENT SYSTEMS AND ACCOUNTING STANDARDS: The Grantee agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit tracing of grant funds to a level of expenditure adequate to establish that such funds have not been used in violation of state law or this Agreement. The Grantee further agrees that it will maintain separate Project accounts in accordance with generally accepted accounting principles. 13. GOVERNING LAW: This grant is governed by and shall be interpreted in accordance with the laws of the State of California. 14. GRANT MODIFICATIONS: The SWRCB may, at any time, without notice to any sureties, by written order designated or indicated to be a "grant modification", make any change in Exhibit A, for the work to be performed under this Agreement so long as the modified work is within the general scope of work called for by this Agreement, including but not limited to changes in the specifications or in the method, manner, or time of performance of work. If the Grantee intends to dispute the change, the Grantee must, within ten (10) days after receipt of a written "grant modification", submit to the SWRCB a written statement setting forth the disagreement with the change. 15. INCOME RESTRICTIONS: The Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Grantee under this Agreement shall be paid by the Grantee to the State, to the extent that they are properly allocable to costs for which the Grantee has been reimbursed by the State under this Agreement. 16. INDEPENDENT ACTOR: The Grantee, and its agents and employees, if any, in the performance of this Agreement, shall act in an independent capacity and not as officers of employees or agents of the SWRCB. 17. INSPECTION: Throughout the life of the Project, the SWRCB shall have the right to inspect the Project area to ascertain compliance with this Agreement. Grantee acknowledges that the Project records and location are public records. 18. INSURANCE: Throughout the life of the Project, the Grantee shall provide and maintain insurance against fire, vandalism and other loss, damage, or destruction of the facilities or structures constructed pursuant to this Agreement, if any. This insurance shall be issued by a company or companies admitted to transact business in the State of California. The insurance policy shall contain an endorsement specifying that the policy will not be cancelled or reduced in coverage without thirty days' prior written notice to the SWRCB. In the event of any damage to or destruction of the Project or any larger system of which it is a part, the net proceeds of insurance shall be applied to the reconstruction, repair or replacement of the damaged or destroyed parts of the Project or its larger system. The Grantee shall begin such reconstruction, repair, or replacement as expeditiously as possible and shall payout of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same shall be completed and the larger system shall be free of all claims and liens. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 10 of 14 19. NONDISCRIMINATION: During the performance of this Agreement, the Grantee and its contractors shall not unlawfully discriminate against, harass, or allow harassment against any employee or applicant for employment because of sex, race, religion, color, national origin, ancestry, disability, sexual orientation, medical condition, marital status, age (over 40) or denial of family-care leave, medical-care leave, or pregnancy-disability leave. The Grantee and its contractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination and harassment. 20. NO THIRD PARTY RIGHTS: The parties to this grant Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this grant Agreement, or of any duty, covenant, obligation or undertaking established herein. 21. NOTICE: The Grantee shall promptly notify the SWRCB of events or proposed changes that could affect the scope, budget, or work performed under this Agreement. The Grantee agrees that no substantial change in the scope of the Project will be undertaken until written notice of the proposed change has been provided to the SWRCB, and the SWRCB has given written approval for such change. The Grantee shall notify the SWRCB at least ten (10) working days prior to any public or media event publicizing the accomplishments and/or results of this Agreement and provide the opportunity for attendance and participation by SWRCB's representatives. The Grantee shall promptly notify the SWRCB in writing of completion of work on the Project. The Grantee shall promptly notify the SWRCB in writing of any cessation of all major construction work on the Project where such cessation of work is expected to or does extend for a period of thirty (30) days or more and of any circumstance, combination of circumstances, or condition, which is expected to or does delay completion of construction for a period of ninety (90) days or more beyond the estimated date of completion of construction previously provided. 22. OPERATIONS & MAINTENANCE: The Grantee shall maintain and operate the facility and structures constructed or improved as part of the Project throughout the life of the Project, consistent with the purposes for which this Grant was made. The Grantee assumes all operations and maintenance costs of the facilities and structures; the SWRCB shall not be liable for any cost of such maintenance, management or operation. The Grantee may be excused from operations and maintenance only upon the written approval of the Grant Manager. For purposes of this Agreement, "operation costs" include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses. "Maintenance costs" include ordinary repairs and replacements of a recurring nature necessary to prolong the life of capital assets and basic structures, and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. 23. PERMITS, CONTRACTING, WAIVER, REMEDIES AND DEBARMENT: The Grantee shall procure all permits and licenses necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental to the due and lawful prosecution of the work. Any contractors, outside associates, or consultants required by the Grantee in connection with the services covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed to during negotiations for this Agreement, or as are specifically authorized by the SWRCB's Grant Manager during the performance of this Agreement. Any substitutions in, or additions to, such contractors, associates, or consultants, shall be subject to the prior written approval of the SWRCB's Grant Manager. Any waiver of rights with respect to a default or other matter arising under the Agreement at any time by either party shall not be considered a waiver of rights with respect to any other default or matter. Any rights and remedies of the State provided for in this Agreement are in addition to any other rights and remedies provided by law. The Grantee shall not contract with any party who is debarred or suspended or otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549, "Debarment and Suspension". The Grantee shall not contract with any individual or organization on USEPA's List of Violating Facilities. (40 CFR, Part 31.35, Gov. Code 4477) www.epls.gov The Grantee certifies to the best of its knowledge and belief, that it and its principals: a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by any federal department or Grantee; b. Have not within a three-year period preceding this Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 11 of 14 transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (federal, state or local) with commission of any of the offenses enumerated in paragraph (b) of this certification; and d. Have not within a three (3)-year period preceding this application/proposal had one or more public transactions (federal, state or local) terminated for cause or default. 24. PREVAILING WAGES AND LABOR COMPLIANCE: If applicable, the Grantee agrees to be bound by all the provisions of State Labor Code Section 1771 regarding prevailing wages. If applicable, the Grantee shall monitor all agreements subject to reimbursement from this Agreement to assure that the prevailing wage provisions of State Labor Code Section 1771 are being met. The Grantee agrees to fulfill its responsibilities under Section 1771.8 of the Labor Code, where applicable. 25. PROFESSIONALS: The Grantee agrees that only licensed professionals will be used to perform services under this Agreement where such services are called for. 26. RECORDS: Without limitation of the requirement to maintain Project accounts in accordance with generally accepted accounting principles, the Grantee agrees to: a. Establish an official file for the Project which shall adequately document all significant actions relative to the Project; b. Establish separate accounts which will adequately and accurately depict all amounts received and expended on this Project, including all grant funds received under this Agreement; c. Establish separate accounts which will adequately depict all income received which is attributable to the Project, especially including any income attributable to grant funds disbursed under this Agreement; d. Establish an accounting system which will adequately depict final total costs of the Project, including both direct and indirect costs; e. Establish such accounts and maintain such records as may be necessary for the state to fulfill federal reporting requirements, including any and all reporting requirements under federal tax statutes or regulations; and f. If Force Account is used by the Grantee for any phase of the Project, establish an account that documents all employee hours, and associated tasks charged to the Project per employee. 27 . RELATED LITIGATION: Under no circumstances may a Grantee use funds from any disbursement under this Grant Agreement to pay costs associated with any litigation the Grantee pursues against the State Water Resources Control Board or any Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any conflicting language in this Agreement, the Grantee agrees to complete the Project funded by this Agreement or to repay all of the grant funds plus interest. 28. RIGHTS IN DATA: The Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Agreement shall be in the public domain. The Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected, and developed under this Agreement, subject to appropriate acknowledgement of credit to the SWRCB for financial support. The Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. 29. STATE REVIEWS AND INDEMNIFICATION: The parties agree that review or approval of Project applications, documents, permits, plans and specifications or other Project information by the SWRCB is for administrative purposes only and does not relieve the Grantee of its responsibility to properly plan, design, construct, operate, maintain, implement, or otherwise carry out the Project. To the extent permitted by law, the Grantee agrees to indemnify, defend and hold harmless the SWRCB and the State against any loss or South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 12 of 14 liability arising out of any claim or action brought against the SWRCB and/or the State from and against any and all losses, claims, damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever arising out of, resulting from, or in any way connected with (1) the Project or the conditions, occupancy, use, possession, conduct or management of, work done in or about, or the planning, design, acquisition, installation or construction, of the Project or any part thereof; (2) the carrying out of any of the transactions contemplated by this Agreement or any related document; (3) any violation of any applicable law, rule or regulation, any environmental law (including, without limitation, the Federal Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control Act, the Clean Air Act, the California Hazardous Waste Control Law and California Water Code Section 13304, and any successors to said laws), rule or regulation or the release of any toxic substance on or near the System; or (4) any untrue statement or alleged untrue statement of any material fact or omission or alleged omission to state a material fact necessary to make the statements required to be stated therein, in light of the circumstances under which they were made, not misleading with respect to any information provided by the Grantee for use in any disclosure document utilized in connection with any of the transactions contemplated by this Agreement. To the fullest extent permitted by law, the Grantee agrees to pay and discharge any judgment or award entered or made against the SWRCB and/or the State with respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The provisions of this section shall survive the term of this Agreement. 30. SUPPLEMENTAL ENVIRONMENTAL PROJECTS: Grant Funds shall not be used for supplemental environmental projects required by Regional Boards. 31. SWRCB ACTION, COSTS, AND ATTORNEY FEES: The Grantee agrees that any remedy provided in this Agreement is in addition to and not in derogation of any other legal or equitable remedy available to the SWRCB as a result of breach of this Agreement by the Grantee, whether such breach occurs before or after completion of the Project, and exercise of any remedy provided by this Agreement by the SWRCB shall not preclude the SWRCB from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Agreement, it is agreed that the prevailing party shall be entitled to such reasonable costs and/or attorney fees as may be ordered by the court entertaining such litigation. 32. TERMINATION, IMMEDIATE REPAYMENT, INTEREST: This Grant Agreement may be terminated by written notice at any time prior to completion of the Project, at the option of the SWRCB, upon violation by the Grantee of any material provision after such violation has been called to the attention of the Grantee and after failure of the Grantee to bring itself into compliance with the provisions of this Agreement within a reasonable time as established by the SWRCB. In the event of such termination, the Grantee agrees, upon demand, to immediately repay to the SWRCB an amount equal to the amount of grant funds disbursed to the Grantee prior to such termination. In the event of termination, interest shall accrue on all amounts due at the highest legal rate of interest from the date that notice of termination is mailed to the Grantee to the date of full repayment by the Grantee. 33. TIMELINESS: Time is of the essence in this Agreement. The Grantee shall proceed with and complete the Project in an expeditious manner. 34. TRAVEL AND PER DIEM: Any reimbursement for necessary travel and per diem shall be at rates not to exceed those amounts paid to the State's represented employees under collective bargaining Agreements currently in effect. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the SWRCB. 35. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Agreement shall continue to have full force and effect and shall not be affected thereby. 36. USEFUL LIFE OF PROJECT: For the purpose of this Agreement, the useful life of any constructed portions of this Project begins upon completion of construction and continues until fifty (50) years thereafter for pipelines and structures and twenty (20) years for all else. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 13 of 14 37. VENUE: The SWRCB and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of Califomia. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement. 38. WITHHOLDING OF GRANT DISBURSEMENTS: The SWRCB may withhold all or any portion of the grant funds provided for by this Agreement in the event that the Grantee has materially violated, or threatens to materially violate, any tenn, provision, condition, or commitment of this Agreement; or the Grantee fails to maintain reasonable progress toward completion of the Project. South County Regional Wastewater Authority SWRCB Grant Agreement No. :05-713-550-0 Water Recycling Project No.: 3224-030 Page 14 of 14 EXHIBIT D Special Conditions [ ] None at this time. [ X] Special conditions as follows: The Grantee hereby certifies that: 1. This Project shall be consistent with the CALFED Programmatic Record of Decision. 2. This Project complies with CEQA. 3. This Project includes a monitoring component that allows the integration of data into statewide monitoring effort, including but not limited to the SWRCB's Surface Water Ambient Monitoring Program (SWAMP), if applicable. e State Water Resources Control Board Linda S. Adams Secretary for Environmental Protection Division of Financial Assistance 1001 I Street. Sacramento, California 95814 P.O. Box 944212 . Sacramento, California. 94244-2120 (916) 341-5700. FAX (916) 341-5707 http://www.waterboards.ca.gov/ Arnold Schwarzenegger Governor December 21, 2007 Jay Baska, Authority Manager South County Regional Wastewater Authority 1500 Southside Drive Gilroy, CA 95020-6197 NOTICE OF PROJECT COMPLETION South County Regional Wastewater Authority South Santa Clara County Recycled Water Service Expansion 05-713-550-0 WRFP-3224-030 Water Recycling Funding Program (WRFP) Dear Mr. Jay Baska: Congratulations on the completion of your project. I have processed your final Request for Disbursement (number 2) dated November 6, 2007 for payment. Our records indicate that after paying the final invoice all funds have been expended. The project agreement requires your agency to retain records a minimum of 23 years for audit purposes. Enclosed is a copy of the completed Request for Disbursement (Form 260) and Construction Contractor Spreadsheet (Form 259). If you have any questions, please contact Eric Santos at (916) 341-5378 or esantos@waterboards.ca.qov. Eric Sa , Program Analyst Contracts & Budgets Unit California Environmental Protection Agency ~J Recycled Paper STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD REQUEST FOR DISBURSEMENT DISBURSEMENT REQUESTED FOR: DATE: 11/06/07 ( ) AGRICULTURAL DRAINAGE LOAN PROGRAM DISBURSEMENT REQUEST NO. 2 ( ) STATE REVOLVING FUND ISA ISA/LOAN/GRANT NO. WRFP-3224-030 ( ) LOCAL MATCH ISA CONTRACT NO. 05-713-550-0 ( ) SMALL COMMUNITY GRANT % ELIGIBLE CONSTRUCTION COMPLETE: 99.63% ( ) SEAWATER INTRUSION CONTROL LOAN ( ) WASTEWATER CONSTRUCTION GRANT ( ) WATER RECYCLING FACILITIES PLANNING GRANT ( X) WATER RECYCLING CONSTRUCTION PROGRAM (GRANT) ( ) WATER RECYCLING CONSTRUCTION PROGRAM (LOAN) LOAN/GRANT RECIPIENT: South County Regional Wastewater Authority STREET/P. O. BOX: 1500 Southside Drive CITY AND ZIP CODE: Gilroy, CA 95020-6197 AUTHORIZED REPRESENTATIVE: Jay Baksa TITLE: Authority Manager STATE USE ONLY (A) (B) (C) (D) (E) (F) (G) (H) DESCRIPTION ISA/LOAN/ COSTS ELIGIBLE COSTS COSTS AMOUNT APPROVED GRANT INCURRED PERCENT CLAIMED APPROVED PREVIOUSLY PAYMENT AMOUNT TO DATE FOR PAY'T FOR PAY'T PAID THIS TO DATE TO DATE REQUEST Construction: G.S.E. Construction $1,689,500 $7,187,492 25% $1,789,631 $1,689,500 $1,681,254 $8,246 Allowances: Engineering, Legal, and $253,425 $1,681,254 15% $253,425 $253,425 $252,188 $1,237 Construction Management SUBTOTAL $1,942,925 $8,868,746 $2,043,056 $1,942,925 $1,933,442 $9,483 Less Local Match (16.667%) if applicable TOTAL $1,942,925 $8,868,746 $2,043,056 $1,942,925 $1,933,442 $9,483 COMMENTS: . A difference of $100,131 exists between Column E and Column F. Costs approved for payment to date are held to grant amount. RECIPIENT CERTIFICATION I certify that the costs shown in column "C" have been incurred and that these costs have been paid or will be paid within 30 day~ of receipt of the funds requested hereby. If such costs have not been paid within 30 days. funds received under this request will be returned to the State Water Resources Control Board (SWRCB). I certify that all prior funds received from this ISAlloan/grant have been disbursed within 30 days of receipt or have been returned to the SWRCB. 10 ,ddllloo " ,", "mgolog, W~PI" I "dll, ,"'I Iho ,ppmpri,,, po,m,o; h" b"o m,d, wcth 100", 'oed, Ih,' '9"'" "" ,,," 'h' S,"" m'~ I ~o. rtif~~------=rts c~ dare s ecific to the loan/grant and within the approved scope of work. -----. ) ~\ ~.-> 1\ /1lol Sigfnatun~,ot)b. t\Authorized Representative Date S~E U~E OJlJ, Y;-1 \~ROVAL FOR PAYMENT \~ ~O ID1- ' -.---. /K/"\ --..,., . ,,~-:> Project Manager ~ ~roj~n~er ,nature , .{):;v Title Date ~ .IX 1 4....04\_...J DEe 1 0 2007 s:;:' f\ U", {)., ,~.,. 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