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Staff Report 412-08
TO: FROM: DATE: City of Palo Alto City Manager’s Report HONORABLE CITY COUNCIL CITY MANAGER OCTOBER 20, 2008 REPORT TYPE: CONSENT DEPARTMENT: PUBLIC WORKS CMR:412:08 SUBJECT:Adoption of a Resolution Authorizing the City Manager to Execute the Implementation Agreement Between the City of PaloAlto And Bay Area Clean Water Agencies for the Disbursement of $972,800 in State Grant Funds for the Mountain View/Moffett Area Recycled Water Pipeline Project (CIP WQ-04010) RECOMMENDATION Staff recommends that Council adopt the attached resolution authorizing the City Manager or designee to execute the Implementation Agreement (Attachment A) with the Bay Area Clean Water Agencies (BACWA) for the disbursement of a $972,800 State grant to the City of Palo Alto (City) for the Palo Alto, Mountain View/Moffett Area recycled water pipeline project. BACKGROUND ~ BACWA is a Joint Powers Authority existing under the laws of the State of California and consisting of various wastewater agencies in the San Francisco Bay Area Region. On behalf of the wastewater agencies in the nine Bay Area counties that surround the San Francisco Bay, BACWA has applied for a Proposition 50 Chapter 8 Grant from the Department of Water Resources (DWR) for implementation of recycled water and water conservation projects that are included in the integrated regional water management plan (IRWMP). The Mountain View/Moffett Area recycled water pipeline project is one of the projects in the IRWMP. The Mountain View/Moffett Area recycled water pipeline project is a joint project between the cities of Mountain View to construct a reclaimed water pipeline from the Palo Alto Regional Water Quality Control Plant (RWQCP) to the Mountain View Shoreline community. The City of Palo Alto, as the owner and operator of the RWQCP, is the lead agency for the project. The two cities have worked together and sought grant funds for the project since the fall of 2003. The cities’ partnership qualified the project as a regional project that would benefit the Bay Delta water supply, and maximized the opportunity for grant funding. The project has received other State grants and loans, and was fully funded in 2007 when construction began. Much of the project is now complete and the project is within budget. In March 2007, DWR awarded BACWA a $12.5 million grant in State funding to reimburse for implementation of projects in the IRWMP. The share of grant funding for the Mountain View/Moffett Area recycled water pipeline project is $972,800 for the construction, implementation, env’tronmental mitigation and enhancement. CMR:412:08 Page 1 of 3 The Implementation Agreement governs the process, by which each of the participating agencies will submit their reimbursement requests to BACWA, and how BACWA.will disburse the State grant funds to each of the participating agencies. When BACWA has executed the implementation agreements with the participating agencies, it will then sign a State Agreement with DWR. The State agreement will govern the process by which DWR will disburse the State grant funds to BACWA. It is anticipated that the State Agreement will be executed in November this year. A copy of the State Agreement is attached as Exhibit A to the Implementation Agreement (Attachment A). DISCUSSION Under the Implementation Agreement, the City is entitled to a reimbursement of $972,800 for the City’s implementation of the Mountain View/Moffett Area recycled water pipeline project, and City agrees to the following: The City will implement, operate, and maintain the Mountain View/Moffett area recycled water pipeline in accordance with the work plan, schedule, and other attachments to the Implementation Agreement; and The City will cooperate with BACWA and each of the participating agencies in fulfilling the obligations under the State Agreement for disbursement of the State Grant funds-to BACWA; and 3. The City will submit project reports in accordance with the Implementation Agreement. The City Attorney’s office has reviewed the Implementation Agreement. RESOURCE IMPACT The Mountain View/Moffett Area recycled water pipeline project is fully funded. There is no budget increase associated with the project, and no additional funding is requested. However, the City is committed to seek State and Federal grants to reduce costs of the project to the City. The City’s share of the State grant is $972,800. This grant will repay part of the construction cost of the project, which totals $16 million. POLICY IMPLICATIONS The recommendations of this staff report are consistent with City Council’s sustainability policy. ENVIRONMENTAL REVIEW Execution of the Implementation Agreement does not constitute a project under the California Environmental Quality Act pursuant to Public Resources Code Section 21065. A Mitigated Negative Declaration and mitigation/monitoring and reporting plan was prepared and adopted by Council for the Mountain View/Moffett Area recycled water pipeline project on January 12, 2004. ATTACHMENTS Attachment A: Implementation Agreement Attachment B: Resolution CMR:412:08 Page 2 of 3 PP~PAI~D BY: DEPARTMENT HEAD: JAMES S. ALLEN Acting Manager, RWQCP GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: City ~ger CMR:412:08 Page 3 of 3 ATTACHMENT A IMPLEMENTATION AGREEMENT NO. 4, BETWEEN BAY AREA CLEAN WATER AGENCIES AND CITY OF PALO ALTO THROUGH THIS IMPLEMENTATION AGREEMENT ("Implementation Agreement"), entered into by and between Bay Area Clean Water Agencies ("BACWA"), a Joint Powers Authority existing under the laws of the State of California, and City of Palo Alto, a California chartered municipal corporation in the County of Santa Clara, State of California, duly organized, existing, and acting pursuant to the laws thereof, ("Project Sponsor"), the parties hereby agree as follows: A. WHEREAS, BACWA is a Joint Powers Authority existing under the laws of the State of California and consisting of various wastewater agencies in the San Francisco Bay Area Region; and B. WHEREAS, on behalf of numerous water entities in the San Francisco Bay Area, as further detailed in Exhibit "G" to the State Agreement attached hereto as Exhibit "A" (individually referred to herein as "Water Entity".; collectively referred to herein as the "Participating Water Entities"), BACWA agreed to apply for a Proposition 50 Chapter 8 Grant from the Department of Water~ Resources, State of California ("DWR"), that would be used to help fund the implementation and operation of various regional water conservation, water recycling, desalination and groundwater projects to be carried out by the Participating Water Entities; each of the Participating Water Entities is a public entity with state grant experience; Project Sponsor is one of the Participating Water Entities; and C. WHEREAS, in March of 2007, pursuant to BACWA’s request made on behalf of the Participating Water Entities, DWR awarded BACWA a grant for $12,500,000:00 in State funding and over $100,000,000.00 in matching funds (the "State Grant"); each of the Participating-Water Entities will be recipients of the State Grant funds and will be the entities responsible for cost-matching required under the State Grant; the grant period will extend from March 20, 2007--the date of the Letter of Conditional Award--until 2014, when the lengthiest projects will wind down and grant closeout activities can be completed; the period of greatest activity under the State Grant is expected to be 2008, when all projects are expected to be active; and D. WHEREAS, the process by which the State Grant funds will be disbursed by DWR to BACWA is governed by way of that certain Grant Agreement entered into by and between DWR and BACWA titled Agreement No. 4600007654 (the "State Agreement"), a true and correct copy of which is attached hereto and incorporated herein as Exhibit "A"I; the funds of the State Grant are reimbursable, in that each discrete 1 A true and correct copy of an unexecuted, version of the State Agreement is attached hereto and incorporated herein as Exhibit "A". Each of the Participating Water Entities, including Project Sponsor, hereby agrees to abide by the final, executed version of the State Agreement, even if that final version is different from the unexecuted version that is attached hereto as Exhibit "A". {00907096}1 project and all eligible administration costs will be reimbursed by DWR after the cost has been incurred and a request for reimbursement has been produced and submitted to DWR by BACWA--the "Grantee" under the State Agreement; BACWA and each of the Participating Water Entities will cooperate in fulfilling the obligations under the State Agreement for disbursement of the State Grant funds to BACWA, who will in turn disburse the State Grant funds to each of the Participating Water Entities for their specified projects; and E. WHEREAS, the process by which each of the Participating Water Entities will submit their reimbursement requests to BACWA, and how BACWA will in turn disburse the State Grant funds to each of the Participating Water Entities, will be governed by individualized versions of this Implementation Agreement entered into between BACWA and each individual Water Entity (collectively, the "Implementation Agreements"); each of the Implementation Agreements will contain similar terms and provisions, but will be tailored to the specific funding and grant requirements particular to each of the Participating Water Entities; each of the Implementation Agreements that will be entered into by and between BACWA and each of the Participating. Water Entities, including Project Sponsor, will ensure that matching funds are committed by the Participating Water Entities and all pertinent conditions under the State Agreement are satisfied, which is intended to reduce the risk of expogure to BACWA in executing the State Agreement on behalf of the Participating Water Entities; thus, the process by which Project Sponsor will submit its reimbursement requests to BACWA, and how BACWA will in turn disburse the applicable portion of the State Grant funds to Project Sponsor, is governed by this Implementation Agreement; this Implementation Agreement shall be fully executed prior to when Project Sponsor will be entitled to submit its first reimbursement request to BACWA and before BACWA will in turn be required to disburse the applicable portion of the State Grant funds to Project Sponsor; and F. WHEREAS,BACWA, as a Joint Powers Authority, relies on the paid services of the East Bay Municipal Utility District ("EBMUD") Accounting Department to provide all its financial accounting services; it is anticipated that, in carrying out each of the Implementation Agreements and the State Agreement, BACWA will rely on EBMUD Accounting to provide all the necessary financial services, including but not limited to the final development of State Grant reimbursement requests, the tracking of State Grant reimbursements from DWR, and the distribution of the State Grant funds to the Participating Water Entities; and G. WHEREAS, one of the stipulations BACWA entered into with the Participating Water Entities was that the cost of applying for and implementing the State Grant and the State Agreement will be fully paid for by the Participating Water Entities, not BACWA; additionally, BACWA and the Participating Water Entities stipulated that all liability under the State Grant and the State Agreement will be the responsibility of the Participating Water Entities, not BACWA; thus, each of the obligations set forth in the Implementation Agreements, including this Implementation Agreement, are to be fulfilled in the manner that most furthers these stipulations; where BACWA will serve as {00907096}2 a project sponsor for a particular project that it will carry out, BACWA will maintain liability for that particular project only. ¯ NOW, @HEREFORE, in consideration of the promises, mutual covenants, and agreements contained herein, and in furtherance of the recitals set forth hereinabove, it is understood and agreed by and between BACWA and Project Sponsor as follows: EXItIBITS The following exhibits, attached hereto, are incorpc~rated herein and made a part hereof for all purposes, to-wit: Exhibit "A":The State Agreement (unexecuted version) Exhibit "B":Work Plan Exhibit "C":Schedule Exhibit "D":Budget Report Format BACWA Board Resolution Implementation Agreement authorizing execution of this Exhibit "G": Project Sponsor Board Resolution authorizing execution of this Implementation Agreement Exhibit "H":Statewide Monitoring PURPOSE; SHARE OF COSTS PURPOSE: This Implementation Agreement is made by and between BACWA and Project Sponsor to assist in financing that particular project titled "Palo Alto/Moffet Recycled Water Pipeline Project" and described in Exhibit "B", Work Plan (hereinafter "Project"). Project Sponsor’s share of the State Grant funds may be used only as provided in this Implementation Agreement for Eligible Costs as included in Exhibit "B", Work Plan. TERM: The term of this Implementation Agreement begins on March 20, 2007, and terminates when Project Sponsor’s obligations under this Implementation Agreement have been fully satisfied. STATE GRANT AMOUNT: Project Sponsor’s share of the $12,500,000.00 in State Grant,funds is $972,800.00, which such share shall hereinafter be referred to as the "State Grant Amount" and which is summarized in Exhibit "D", Budget. {00907096} o o PROJECT SPONSOR’S COSTS: The total reasonable costs of Project are estimated to be $21,421,971.00, which are summarized in Exhibit "D", Budget. Prgject Sponsor agrees to fund the difference, if any, between the total estimate of Project work costs and the State Grant Amount specified in Paragraph 3, above. Project Sponsor’s Costs are therefore estimated to be $20,449,171.00, which is summarized in Exhibit "D", Budget. Project Sponsor agrees to dedicate revenues in the amount of the estimate of Project Sponsor’s Costs as described in Exhibit "D", Budget, as such estimate may be revised from time to time, which such dedicated revenues may be utilized only for the payment of Project Sponsor’s Costs. ELIGIBLE COSTS: Project Sponsor shall apply its share of State Grant funds received only to Eligible Costs. "Eligible Costs" are the reasonable and necessary costs of engineering, design, legal fees, land and easement, preparation of environmental documentation, environmental mitigation, and project implementation. Only work performed after the effective date of the State Agreement between BACWA and DWR shall be eligible for reimbursement. Costs incurred after November 5, 2002, and prior to the effective date of the State Agreement, are not eligible for reimbursement. However, such costs may be considered, at DWR’s discretion, as part of Project Sponsor’s funding match, if such costs were otherwise reimbursable. Reasonable administrative expenses may be included as project costs and will depend on the complexity of Project preparation, planning, coordination, construction, acquisitions, implementation, and maintenance: Reimbursable administrative expenses are the necessary costs incidentally but directly related to Project, including an appropriate pro-rata allocation of overhead and administrative expenses that are regularly assigned to all such projects in accordance with the standard accounting practices of Project Sponsor. Costs that are not reimbursable with State Grant funds include, but may not be limited to, the following: ~ a. Costs incurred prior to March 20, 2007. b.Project operation and maintenance costs, including post-construction performance and monitoring costs. c. Purchase of equipment not an integral part of Project. d. Establishing a reserve fund. e.Purchase of a water supply. f.Replacement of existing funding sources for ongoing programs. g.Support of existing agency requirements and mandates. h.Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of Project, as set forth and detailed by engineering {00907096}4 o ° and feasibility studies, or land purchased prior to the effective date of the State Agreement. Payment of principal or interest of existing indebtedness or any interest payments, unless the debt is incurred after execution of the State Agreement, DWR agrees in writing to the eligibility of the costs for reimbursement before the debt is incurred, and the purposes for which the debt is incurred are otherwise Eligible Costs. j.Overhead not directly related to Project costs. UPFRONT CONTRIBUTION OF ADMINISTRATION COSTS: BACWA, as administrator of the State Grant funds, will not provide upfront funds for the administration of the State Grant. In August of 2007, BACWA invoiced each of the Participating Water Entities a proportional share of upfront costs in order to establish a fund to pay for administration costs incurred in the development of the State Agreement between BACWA and DWR, the development of the Implementation Agreements by and among BACWA and each of the Participating Water Entities, and the establishment of an accounting system. Each of the Participating Water Entities was obligated to provide BACWA their proportionate share (which shall be calculated as the ratio of the State Grant Amount to the total of the State Grant funds, i.e., Project Sponsor’s share of the State Grant funds divided by the total of the State Grant funds) of $80,000.00 in estimated administration costs to begin implementation of the State Agreement. Project Sponsor has already provided BACWA an upfront payment of $5,000.00, which represents Project Sponsor’s share of the $80,000.00 upfront administration costs. The proportion of Project Sponsor’s share of the upfront administration costs to all upfront administration costs shall be Project Sponsor’s "Proportionate Share", which such Proportionate Share shall be used/co determine Project Sponsor’s share of future administration costs billed by BACWA, as described in Paragraph 7, below. ADMINISTRATION COSTS IN GENERAL: The upfront administration costs already invoiced and discussed in Paragraph 6, above, are estimated to be sufficient to establish a fund from which BACWA can draw to pay for administration costs until such time as it can be replenished through reimbursements provided by DWR through the State Agreement. On a quarterly basis, BACWA will request a reimbursement under the State Agreement for administration and legal costs incurred by BACWA. ("Legal costs" are defined to include the cost of legal representation incurred by BACWA when entering into the State Agreement with DWR, the costs of BACWA’s legal representation in developing the Implementation Agreements between BACWA and the Participating Water Entities, and the cost of BACWA’s legal representation in answering questions that may arise during course of performance of the State Agreement and/or the Implementation Agreements.) If at any time it appears that there may be insufficient funds to carry out the administration of the State Grant, BACWA will send out additional invoices to each of the Participating Water {00907096} Entities. Project Sponsor agrees to pay BACWA its Proportionate Share of such costs when they are billed. BACWA agrees that under no circumstances will the costs of administration services provided by BACWA be greater than the cost BACWA itself pays for such administration services. Project Sponsor may request reimbursement for the administration costs it pays to BACWA by way of the invoices that it submits to BACWA, as provided in Paragraph 36, below. The total amount of the State Grant funds that is anticipated to be used to reimburse the Participating Water Entities for administration and legal costs incurred by BACWA and billed to the Participating Water Entities is $250,000.00. Project Sponsor agrees that if the cost of administration appears that it will exceed $250,000.00, then Project Sponsor will cooperate with BACWA and each of the remaining Participating Water Entities (by and through the Oversight and Coordination Committee, as discussed in Paragraph 23, below) to determine what additional portion of the State Grant funds will be used to reimburse for administration costs and how such reimbursement will occur. Project Sponsor acknowledges that the State Agreement encompasses numerous projects to be carried out by each of the Participating Water Entities, including Project Sponsor, and thus different schedules are applicable to each such project and there is the possibility of unforeseen delays in certain projects. Due to such circumstances, some projects encompassed by the State Agreement may be completed before others and other projects may take longer to complete than originally contemplated, and as a result, the cost of administration under the State Agreement may increase. Therefore, Project Sponsor agrees that it will cooperate with BACWA and each of the remaining Participating Water Entities (by and through the Oversight and Coordination Committee, as discussed in Paragraph 23, below) to determine how such costs for prolonged administration, if any, will be billed and reimbursed. ~ REDIRECTION OF UNUSED ADMINISTRATION COSTS: Project Sponsor agrees that, if any of the State Grant funds that were originally allocated under the State Agreement to cover administration costs are not needed for that purpose, Project Sponsor will cooperate with BACWA and the remaining Participating Water Entities (by and through the Oversight and Coordination Committee, as discussed in Paragraph 23, below) to request approval from DWR to redirect such funding. PROJECT-SPECIFIC REQUIREMENTS PROJECT MANAGERS: Either BACWA or Project Sponsor may change its Project Manager upon written notice to the other party. BACWA’s Proiect Manager: BACWA’s Project Manager shall be Michele M. Pla, its Executive Director. BACWA’s Project Manager shall be BACWA’s representative and shall have the authority to make determinations and findings with respect to each controversy arising under or in connection {00907096}6 10. 11. 12. 13. 14. with the interpretation, performance, or payment for work performed under this Implementation Agreement. Project Sponsor’s Project Manager: Project Sponsor’s Project Manager shall be James Keene, its City Manager. Project Sponsor’s Project Manager shall be Project Sponsor’s representative for the administration of this Implementation Agreement and shall have full authority to act on behalf of Project Sponsor, including authority to execute all payment requests. PROJECT SPONSOR RESPONSIBILITY: Project Sponsor shall be responsible for work and for persons or entities engaged in work, including, but not limited to, subcontractors, suppliers, and providers of services. Project Sponsor or its representatives shall provide regular inspections of any construction work in progress regarding Project. Project Sponsor shall give attention to fulfillment of this Implementation Agreement and completion of Project work, and shall keep all work under control. PROJECT SCHEDULE: Project Sponsor shall diligently perform all Project work as described in Exhibit "B", Work Plan, and in accordance with Exhibit "C", Schedule. PROJECT RELATED DISPUTES: Project Sponsor shall be responsible for any and all disputes arising out of its contracts for Project work, including but not limited to bid disputes and payment disputes with Project Sponsor’s contractors, subcontractors, and suppliers. BACWA will not mediatd disputes between Project Sponsor and any other party concerning responsibility for performance of Project work. RELATIONSHIP OF BACWA AND PROJECT~SPONSOR: Project Sponsor is solely responsible for design, construction, operation, and maintenance of Project. Review or approval of plans, specifications, bid documents, or other construction documents by BACWA is solely for the purpose of proper administration of State Grant funds by BACWA and shall not be deemed to relieve or restrict Project Sponsor’s responsibility or to constitute design approval. PROJECT SPONSOR REPRESENTATIONS: Project Sponsor accepts and agrees to comply with all the applicable terms, provisions, conditions, and commitments of the State Agreement, including all documents incorporated therein; all the terms, provisions, conditions, and commitments of this Implementation Agreement, including all incorporated documents; and to fulfill all assurances, declarations, representations, and statements relevant to Project made by Project Sponsor to BACWA and with respect to BACWA’s application, documents, amendments, and communications filed in support of its request to DWR for the State Grant. Project Sponsor also acknowledges and accepts that, pursuant to Paragraph 10 of the State Agreement, in the event that BACWA fails to secure an individualized {00907096}7 15. 16. 17. 18. Implementation Agreement v~y of the Participating Water Entities by December 31, 2008, BACWkli not be held responsible for the associated Water Entity’s activities und~n:7 of the State Agreement, and DWR may reduce the State Grant funds~ting to the portion of the State Grant funds intended for the nonparticipa~i~ater Entity(ies). In addition, in the event BACWA fails to secure an in~liZed Implementation Agreement with any of the Participating Water Entiti~CWA shall submit to DWR a revised State Agreement "Scope of Work" ilfour months of the failure to secure such an individualized Imptementati~igreement. Moreover, Project Sponsor acknowledges and accepts tha!~,ant to Paragraph 10 of the State Agreement, BACWA is required to s~’ ~to DWR copies of all individualized Implementation Agreements tlhe Participating Water Entities within two months of the execution of su~ements. Project Sponsor agrees to cooperate with BACWA using all reasolltmeans in order for BACWA to comply with Paragraph 10 of the State Agr~t: PROJECT PERFORMANCE I&SSURANCES: Project Sponsor agrees to faithfully and expeditiously laita~.all Project work as described in the final plans and specifications under~plementation Agreement and to implement, operate and maintain Project i~r~dance with applicable provisions of the law. In the event BACWA findsti::cessary to enforce this provision of this Implementation Agreement, ~Sponsor agrees to pay all costs incurred by BACWA including,, but not lir~d, reasonable attorneys’ fees, legal expenses, and other associated costs. INSPECTION OF PROJECT~ACWA AND DWR: BACWA and DWR shall have the right to inspect ~ll~trk being performed at any and all reasonable times, providing a minimurn~i, 24-hour notice,, during the term of this Implementation Agreement. T~ht shall extend to work performed under any Project related contracts and@ntracts, and Project Sponsor shall include provisions ensuring such accesitt’ its contracts or subcontracts entered into for Project. FINAL INSPECTIONS ANIIRTIFICATION OF REGISTERED CIVIL ENGINEER: Upon completio~roject and as may be determined by BACWA and/or DWR, Project Sponsor~rovide for a final inspection and certification by a California Registered C~gineer that Project has been completed in accordance with submitted fin~s and specifications, and any modifications thereto, and in accordance wittiitnplementation Agreement. OPERATION AND MAINT!]iCE OF PROJECT: For the useful life of Project, and in consideration ~.ct Sponsor’s share of the State Grant funds (i.e., the State Grant Amount),~t Sponsor agrees to expeditiously commence and to continue operation of l~t and shall cause Project to be operated in an efficient and economical ma~hall provide for all repairs, renewals, and replacements necessary to the flint operation of the same; and shall cause the same to be maintained in as gc@l efficient condition as upon its construction, {00907096} 19. 20. ordinary and reasonable wear and depreciation excepted. Project Sponsor shall assume all operations and maintenance costs of Project facilities and structures; BACWA shall noX be liable for any cost of such maintenance, management, or operation. For purposes of this Implementation Agreement, the "useful life" of any constructed portions of Project begins upon completion of construction and continues until fifty (50) years thereafter for pipelines and structures and twenty (20) years for all else. "Operation costs" include direct costs incurred for material and labor needed for operations, entities, insurance, and similar expenses. "Maintenance costs" include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Project Sponsor may be excused from operations and maintenance only upon the written approval of BACWA. If Project Sponsor wishes to be excused from operations and maintenance, Project Sponsor shall first request permission for such excusal from BACWA in writing. Upon receipt thereof, BACWA will forward the request to DWR for its determination as to whether the requested excusal will be authorized. BACWA will inform Project Sponsor, in writing, of DWR’s approval or disapproval of the requested excusal. If DWR approves the requested excusal, then BACWA shall provide the necessary permission to Project Sponsor required by this Paragraph. Refusal of Project Sponsor to ensure operation and maintenance of Project in accordance with this Paragraph may, at the option of BACWA, be considered a breach of this Implementation Agreement and may be treated as a default. MONITORING REQUIREMENTS: Project Sponsor shall ensure that any component of Project that includes groundwater monitoring requirements is consistent with the Groundwater Quality Monitoring Act of 2001 (Part 2.76, commencing with Section 10780, of Division 6 of the California Water Code), and that any portion .of Project that affects water quality shall include a monitoring component that allows the integration of data into statewide monitoring efforts, including, but not limited to, the surface water ambient monitoring program carried out by the State Water Resources Control Board. Exhibit "H", Statewide Monitoring, provides guidance on such monitoring requirements. NOTIFICATION REQUIREMENTS: Project Sponsor shall promptly notify BACWA, in writing, of the following items: go Events or proposed changes that could affect the scope, budget, or work performed under this Implementation Agreement. Project Sponsor agrees that no substantial change in the scope of Project will be undertaken until written notice of the proposed change has been provided to BACWA and BACWA has obtained written approval from DWR for such change. {00907096} 21. 22. Any public or media event publicizing the accomplishments and/or results of this hnplementation Agreement. Project Sponsor shall make such notification at least thirty-(30) calendar days prior to the event and shall provide the opportunity for attendance and participation by BACWA’s and DWR’s representatives. c. Completion of work on Project. Final inspection of Project by a Registered Civil Engineer, in accordance with Paragraph 17. Project Sponsor shall make such notification at least thirty (30) calendar days prior to the final inspectibn and shall provide BACWA and DWR the opportunity to participate in the inspection. ACKNOWLEDGEMENT OF CREDIT: Project Sponsor shall include appropriate acknowledgment of credit to DWR, BACWA, and all other cost- sharing partners for their support when promoting Project, any associated State Grant-funded project, or using any data and/or information developed under this Implementation Agreement. During construction and implementation of Project, Project Sponsor shall install a sign at a prominent location which shall include a statement that Project is financed under the California Water Security, Clean Drinking Water, Coastal and Beach Protection Fund of 2002, administered by State of California, Department of Water Resources. Project Sponsor shall notify BACWA as each sign has been erected by providing it with a site-map with the sign location noted and a photograph of each sign. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT BACWA PERMISSION: Project Sponsor shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with Project without prior written permission of BACWA. Project Sponsor shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Project Sponsor to meet its obligations under this Implementation Agreement, without prior written permission of BACWA. If Project Sponsor wishes to take any action contemplated by this Paragraph for which prior written permission is required of BACWA, Project Sponsor shall first request such permission from BACWA in writing. Upon receipt thereof, BACWA will forward the request to DWR for its determination as to whether the requested action will be authorized. BACWA will inform Project Sponsor, in writing, of DWR’s approval or disapproval of the requested action. If DWR approves the requested action, then BACWA shall provide the necessary permission to Project Sponsor to carry out the requested action. Project Sponsor acknowledges and accepts that, pursuant to the State Agreement, DWR may require that the proceeds from the disposition of any such real or personal property be remitted to DWR. {00907096)l0 23. 24. 25. OVERSIGHT AND COORDINATION COMMITTEE; SUBMISSION OF REPORTS OVERSIGHT AND COORDINATION COMMITTEE: BACWA and the Participating Water Entities, including Project Sponsor, will" and--once each of the Participating Water Entities execute the individualized Implementation Agreements--hereby do form an Oversight and Coordination Committee (hereinafter the "OCC"). The purpose and function of the OCC will be to review draft forms of the Quarterly Reports (as .described below), review pending Reimbursement Requests (as described below), and resolve any outstanding issues concerning the State Agreement and/or the State Grant funds. The OCC will also interact with DWR personnel as needed. The OCC must review and agree on any proposal to change administration-cost funding allocations under the State Agreement before request for approval thereof is submitted by BACWA to DWR. The OCC will meet via teleconference on a quarterly basis, or more frequently as may be necessary. The OCC will be composed of BACWA’s Project Manager and/or a BACWA Board Member, as well as the Project Manager for each of the Participating Water Entities, including Project Sponsor’s Project Manager. Any review of reports or pending Reimbursement Requests by the OCC will be independent of any review or certification required by BACWA. GENERAL REQUIREMENTS REGARDING REPORTS: The submittal and approval of all reports is a requirement for the successful completion of this Implementation Agreement and the State Agreement. All reports Shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to BACWA. All reports shall be submitted to BACWA’s Project Manager, and shall be submitted in both electronic and hard-copy forms. If requested, Project Sponsor shall promptly provide any additional information deemed necessary by BACWA for approval of reports. Reports shall be presented in the formats described in Exhibit "E", Report Format. The submittal and approval of reports is a requirement for initial and continued disbursement of State Grant funds by BACWA to each of the Participating Water Entities, including Project Sponsor. PROGRESS REPORTS: Beginning Oc{ober 8, 2008, and for the duration of this Implementation Agreement, Project Sponsor shall submit to BACWA a Progress Report which explains the status of Project as described in Exhibit "B", Work Plan. Progress Reports shall be submitted no later than the 8th of January, April, July, and October for the preceding quarter. Progress Reports shall summarize the work completed for Project during the reporting period. Progress Reports shall include a statement of progress compared to the schedule contained in Exhibit "C", Schedule, and a comparison of actual costs to date to the budget contained in Exhibit "D", Budget. {00907096}11 26. 27. 28. QUARTERLY REPORTS: Beginning October 3 t, 2008, and for the duration of the State Agreement,’ BACWA will submit to DWR a Quarterly Report that will explain the status-of each project to be carried out by the Participating Water Entities, including Project Sponsor’s Project. Quarterly Reports will be submitted by the last day of January, April, July and October for the preceding quarter. Quarterly R~ports will summarize the work completed for each project to be carried out by the Participating Water Entities, including Project Sponsor’s Project, during the reporting period. Quarterly Reports will include, for each project, a statement of progress compared to the schedules submitted by the Participating Water Entities, and a comparison of the actual costs to date to the budgets submitted by the Participating Water Entities. BACWA will prepare each Quarterly Report based on the information provided by the Participating Water Entities, including Project Sponsor, by way of the Progress Reports. Each Quarterly Report will be presented to the OCC in draft form prior to submittal to DWR. If requested, Project Sponsor shall promptly provide any additional information deemed necessary by BACWA for preparation and approval of the Quarterly Reports. PROJECT COMPLETION REPORTS: Project Sponsor shall prepare and submit to BACWA a Project Completion Report for Project as described in Exhibit "B", Work Plan. Project Sponsor shall submit a Project Completion Report within sixty (60) calendar days of completion of all tasks associated with Project. The Project Completion Report shall include a description of actual work done, a final schedule showing actual progress versus planned progress, and copies of any final documents or reports generated or utilized during Project Sponsor’s implementation of Project. The Project Completion Report shall also include, if applicable, certification of completion of Project by a registered civil engineer, consistent with Paragraph 17 of this Implementation Agreement. After receiving the Project Completion Report from Project Sponsor, BACWA will forward the Project Completion Report, after making any necessary changes, to DWR. This Project Completion Report will be submitted by BACWA to DWR within ninety (90) calendar days of completion of all tasks associated with Project. STATE GRANT COMPLETION REPORT: Upon completion of all the projects to be carried out by the Participating Water Entities, including Project Sponsor’s Project, BACWA will submit to DWR a Grant Completion Report. The Grant Completion Report will be submitted within ninety (90) calendar days of BACWA’s submittal of the Project Completion Report for the final project to be completed under the State Agreement, whether that project is Project Sponsor’s Project or a project of one of the other Participating Water Entities. The Grant Completion Report will include a brief description of each project to be completed by the Participating Water Entities, including Project Sponsor’s Project, and how the projects will further the goals of the State Agreement. If requested, Project Sponsor shall promptly provide any additional information {00907096}12 29. 30. 31. deemed necessary by BACWA for preparation and approval of the Grant Completion Report. POST PERFORMANCE REPORTS: Project. Sponsor shall submit a Post Performance Report for Project directly to DWR and in accordance with Paragraph 21 of the State Agreement, as that paragraph relates to "Post Performance Reports". In particular, and as provided in the State Agreement, a Post Performance Report shall be submitted to DWR within ninety (90) calendar days after the first operational year of Project has elapsed. In subsequent operational years, all Post Performance Reports for Project shall be submitted concurrently, and no later than the last day of March of each year. This record keeping and reporting process shall be repeated annually for a total of ten (10) years after Project, as completed, begins operation. A copy of all Post Performance Reports submitted by Project Sponsor to DWR shall also be provided to BACWA for its review and record-keeping. Such copies shall be submitted to BACWA at the same time Project Sponsor submits its Post Performance Reports to DWR. METHOD OF DISBURSEMENT OF STATE GRANT FUNDS REQUIREMENTS FOR DISBURSEMENT: Project Sponsor acknowledges and accepts that, under the State Agreement, BACWA, by and through the Participating Water Entities, including Project Sponsor, will be required by the State Agreement to, by June 30, 2009, meet all conditions precedent to the disbursement of money under the State Agreement, including Basic Conditions, Paragraph 31. Project Sponsor acknowledges and accepts that failure by BACWA, by and through the Participating Water Entities, including Project Sponsor, to comply with this date may, at ~he option of DWR, result in termination of the State Agreement and, by implication, this Implementation Agreement. For disbursements of State Grant funds for Project, Project Sponsor shall continue to meet the Basic Conditions, Paragraph 31, as well as the Conditions for Disbursement, Paragraph 32. BASIC CONDITIONS: Project Sponsor acknowledges and accepts that DWR and BACWA shall have no obligation to disburse money under the State Agreement and this Implementation Agreement, respectively, unless and until BACWA, by and through the Participating Water Entities, has satisfied DWR’s requirements for disbursement in accordance with the California Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002, which include: ao Adoption of an Integrated Regional Water Management Plan. BACWA demonstrates that the Participating Water Entities are aware of and will comply with the provisions of the State Agreement between BACWA and DWR. {00907096}13 32. 33. Co Project Sponsor demonstrates the availability of sufficient funds to complete Project, taking into account tha;~ portion of the State Grant Amount that has yet to be disbursed for Project, and BACWA demonstrates the availability of sufficient funds to complete the projects to be carried out by the other Participating Water Entities. BACWA demonstrates that the Participating Water Entities, including Project Sponsor, have complied with all applicable requirements of the California Environmental Quality Act and the National Environmental Policy Act by submitting copies of any required environmental documents, including environmental impact reports, environmental impact statements, negative declarations, mitigation agreements, and environmental permits as may be required prior to beginning construction and/or implementation of the projects to be carried out by the Participating Water Entities, including Project Sponsor’s Project. e. For the tei’m of the State Agreement, BACWA submits timely periodic progress reports and Post Performance Reports as referenced in Paragraphs 24-29. CONDITIONS FOR DISBURSEMENT: Prior to disbursement of State Grant funds by BACWA to Project Sponsor, Project Sponsor shall submit to BACWA: a. Final plans and specifications certified by a California Registered Civil Engineer as to compliance with the approved Project as defined in Paragraph 17. b. A written statement that all necessary permits, easements, rights-of-way, and approvals as may be required by other State,/federal and!or local agencies, as specified in Paragraph 49, have been obtained. SUBMISSION OF INVOICES: Prior to the Submittal of any reimbursement requests by BACWA to DWR, Project Sponsor shall provide to BACWA an invoice for costs incurred with respect to Project. Invoices submitted by Project Sponsor shall include the following information: a.Costs incurred for work performed in implementing Project or Project contracts during the period identified in the particular invoice. b. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for .Project during the period identified in the particular invoice for the construction, operation, or maintenance of Project. c. All appropriate receipts and reports for costs incurred. d. Invoices shall meet the following format requirements: {00907096}14 34. 35. i.Invoices must contain the date of the invoice, the time period covered by the invoice, and the total amount due. ii.Invoices must be itemized based on the catego~’ies specified in Exhibit ~D", Budget. The amount claimed for salaries/wages/consultant fees must include a calculation formula (i.e., hours or days worked multiplied by the hourly or daily rate -- the total amount claimed). iii. Each invoice shall clearly delineate those costs claimed for reimbursement from the State Grant Amount and those costs that represent Project Sponsor’s Costs. iv.Original signature and date (in ink) of Project Sponsor’s Project Manager. REIMBURSEMENT REQUESTS: Reimbursement Requests for costs incurred with respect to the projects to be carried out by the Participating Water Entities, including Project Sponsor’s Project, are expected to be submitted on a quarterly basis by BACWA to DWR. BACWA will be responsible for preparing the Reimbursement Requests based on the invoices and other records provided by the Participating Water Entities, including Project Sponsor. Reimbursement Requests will be submitted for those invoices and records which have been provided to BACWA, even if one or more of the Participating Water Entities hag not submitted an invoice for the reimbursement period in question. Each Reimbursement Request will be made available to the OCC for review and comment before BACWA submits it to DWR. If requested, Project Sponsor shall promptly provide any additional information deemed necessary by BACWA for preparation and approval of the Reimbursement t~equests. METHOD OF REIMBURSEMENT: Once a Reimbursement Request is finalized by BACWA, BACWA will submit it to DWR. Project Sponsor acknowledges and accepts that only after the disbursement requirements in Paragraphs 30-32, above, are met, in addition to the requirements for timely progress reports, will DWR be obligated to disburse any of the State Grant funds to BACWA. Project Sponsor additionally acknowledges and accepts that State Grant funds will be disbursed by DWR subject to the availability of funds through normal DWR processes. Project Sponsor also acknowledges and accepts that, per the State Agreement, DWR, and thus BACWA, is only obligated to disburse to Project Sponsor any of the State Grant Amount in Paragraph 3, above, once Project Sponsor has expended the amount specified in the column entitled "Required Local Cost Share" in Exhibit "D", Budget, which for Project Sponsor is $2,150,000.00. After BACWA receives a disbursement of State Grant funds in response to a Reimbursement Request, the funds will then be disbursed by BACWA to the Participating Water Entities, including Project Sponsor, as applicable. A {00907096}15 36. 37. 38. transmittal letter will be sent to each of the Participating Water Entities entitled to a disbursement in order to document, at a minimum, the reimbursement amount, the cumulative amount of reimbursement distributed to date, the cumulative matching amount to date, and any other outstanding issues. With respect to any disbursement of State Grant funds to Project Sponsor, such funds will be disbursed in accordance with the relative payment obligations set forth in Paragraph 3, State Grant Amount, and Paragraph 4, Project Sponsor’s Costs. Any and all State Grant funds that are disbursed to Project Sponsor under this Implementation Agreement, and any and all interest earned by Project Sponsor on such funds, shall be used solely to pay Eligible Costs. REIMBURSEMENT FOR ADMINISTRATION COSTS: Project Sponsor agrees to pay BACWA its Proportionate Share of administration and legal costs when they are billed, pursuant to Paragraph 7, above. Project Sponsor may include a request for reimbursement of the administration costs that it paid to BACWA when Project Sponsor submits its invoices to BACWA for reimbursement by DWR to Project Sponsor through BACWA. WITHHOLDING OF STATE GRANT DISBURSEMENT: If BACWA determines that Project is not being constructed substantially in accordance with the provisions of this Implementation Agreement, or that Project Sponsor has failed in any other respect to comply substantially with the provisions of this Implementation Agreement, and if Project Sponsor does not promptly remedy any such failure to BACWA’s satisfaction, BACWA may withhold from Project Sponsor all or any portion of the State Grant Amount and take any other action that it may deemnecessary to protect its interests. Project Sponsor acknowledges and accepts that ifDWR determines that any .of the projects to be carried out by the Participating Water Entities, including Project Sponsor’s Project, are not being constructed substantially in accordance with the provisions of the State Agreement, or that any of the Participating Water Entities, including Project Sponsor, has failed in any other respect to comply substantially with the provisions of the State Agreement, and if the Water Entity in question does not remedy such failure to DWR’s satisfaction, DWR may withhold from BACWA all or any portion of the State Grant funds and take any other action that it may deem necessary to protect its interests. WITHHOLDING A PORTION OF THE STATE GRANT FUNDS: Where a portion of the State Grant Amount has been disbursed to Project Sponsor and BACWA notifies Project Sponsor of its or DWR’s decision to withhold the balance of the State Grant Amount because of a failure of Project Sponsor to perform its obligations hereunder, the portion that has been disbursed shall thereafter be repaid immediately with interest, as directed by BACWA. Refusal of Project Sponsor to repay such amount may, at the option of BACWA, be considered a breach of this Implementation Agreement and may be treated as a default. {00907096}16 39. Project Sponsor acknowledges and accepts that, pursuant to Paragraph 18 of the State Agreement, if DWR makes a determination applicable only to a portion of the. State Grant funds that BACWA, by and through a particular Water Entity, has not substantially complied with the State Agreement’s requirements, DWR will notify BACWA of its determination. DWR may thereafter withhold a portion of the State Grant funds applidable to the particular Participating Water Entity in question and require BACWA to immediately repay all or any portion of the State Grant funds that have already been disbursed to it with interest, consistent with DWR’s determination. Thus, if Project Sponsor is responsible for DWR’s determination to withhold a portion of the State Grant funds pursuant to Paragraph 18 of the State Agreement, then Project Sponsor shall comply with the above sub-paragraph and repay any portion of the State Grant Amount that has already been disbursed to it, with interest, to BACWA for reimbursement to DWR. If Project Sponsor is not responsible for DWR’s determination to withhold a portion of the State Grant funds pursuant to Paragraph 18 of the State Agreement, then Project Sponsor hereby agrees to comply with the requirements of Paragraph 58 of this Implementation Agreement, as applicable. Project Sponsor further acknowledges and accepts that the failure of BACWA, by and through the Participating Water Entities, to repay the requested disbursed State Grant fujads to DWR after Paragraph 18 of the State Agreement is triggered, may be considered by DWR to a be a breach of the State Agreement subject to the default provisions thereof. Furthermore, Project Sponsor acknowledges and accepts that if DWR acts under Paragraph 18 of the State Agreement to withhold a portion of the State Grant funds, DWR may require BACWA to submit a revised Work Plan, Schedule, and Budget for DWR’s approval before DWR disburses any additional State Grant funds. Project Sponsor therefore agrees to cooperate with BACWA in any way necessary to ensure that it is able to comply withthe provisions of Paragraph 18 of the State Agreement. Any interest due under this Paragraph 38 shall be equal to one of the following: (1) If Project Sponsor is required to repay any portion of the State Grant Amount already disbursed to it as a result of BACWA’s determination that Project Sponsor has failed to perform its obligations, then the interest due shall be equal to the highest legal rate of inte.rest in existence at the time; or (2) if Project Sponsor is required to repay any portion of the State Grant Amount already disbursed to it as a result of DWR’s determination that Project Sponsor has failed to perform its obligations, then the interest due shall be equal to the lesser of either the rate of interest determined by DWR or the highest legal rate of interest in existence at the time. WITHHOLDING ENTIRE OR REMAINING PORTION OF STATE GRANT AMOUNT: If BACWA notifies Project Sponsor of its or DWR’s decision to withhold the entire State Grant Amount, or any remaining portion of the State Grant Amount after a portion has already been disbursed, this Implementation Agreement shall terminate upon receipt of such notice by Project Sponsor and shall no longer be binding on either BACWA or Project Sponsor, save and except Project Sponsor’s obligations under Paragraph 38, above. {00907096 17 40. 41. 42. 43. 44. RETENTION: Project Sponsor acknowledges and accepts that DWR, hence BACWA, may withhold ten percent (10.0%) of the State Grant funds until the projects to ~be carried out by the Participating Water Entities are completed and the Participating Water Entities have met the applicable requirements of Paragraphs 24-29, above. Project Sponsor shall be entitled to its ten percent (10.0%) of the State Grant Amount withheld by DWR when it submits its Project Completion Report and it has been accepted by DWR, unless Project Sponsor is the last of the Participating Water Entities to complete its project, in which case Project Sponsor will have to wait until the State Grant Completion Report has been submitted to and accepted by DWR before it will be entitled to its ten percent (10.0%) of the State Grant Amount withheld by DWR. ACCOUNTING REQUIREMENTS BOOKKEEPING REGARDING STATE AGREEMENT: All bookkeeping regarding the State Agreement, and any State Grant funds disbursed by DWR relating thereto, will be the responsibility of BACWA. At a minimum, records will be updated on a monthly basis to summarize BACWA administration costs to date, reimbursements requested from DWR, reimbursements received from DWR, matching costs submitted to DWR for approval, matching costs approved by DWR, reimbursements paid out by BACWA, and any other outstanding financial issues. These monthly records will be made available in electronic format to each of the Participating Water Entities, and will be rolled up for Quarterly Reports or annual financial statements. SEPARATE ACCOUNTING OF GRANT DISBURSEMENT AND INTEREST RECORDS: Project Sponsor shall account for the money disbursed pursuant to this Implementation Agreement separately from all other funds of Project Sponsor. Project Sponsor shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Project Sponsor shall keep complete and accurate records of all receipts, disbursements, and any interest earned on such funds. Project Sponsor shall require its contractors and subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records of Project Sponsor shall be subject to inspection by BACWA or DWR at any and all reasonable times. FISCAL. MANAGEMENT SYSTEMS AND ACCOUNTING STANDARDS: Project Sponsor agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit tracing of State Grant funds to a level of expenditure adequate to establish that such funds have not been used in violation of State law, the State Agreement, or this Implementation Agreement. AUDITS: BACWA reserves the right to conduct an audit at any time between the ,execution of this Implementation Agreement and the completion of Project, with the costs of such audit borne by BACWA. After completion of Project, BACWA may require Project Sponsor to conduct a final audit, at Project Sponsor’s {00907096~18 45. 46. 47. 48. expense, such audit to be conducted by, and a report prepared by, an independent Certified Public Accountant. Failure or refusal by Project Sponsor to comply with this provision shall be considered a breach of this Implementation Agreement, and BACWA may take any action it deems necessary to protect its interests. Project Sponsor also acknowledges and accepts that DWR may conduct an audit at any time between the execution of the State Agreement and the comple~ion of Project, with the costs of such audit borne by DWR. Project Sponsor agrees that BACWA, or its designated representative, and the Bureau of State Audit, or its representative, .shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Implementation Agreement. Project Sponsor agrees to maintain such records for a possible audit for a minimum of three (3) years after final payment of the State Grant Amount, unless a longer period of record-retention is stipulated by and between BACWA and DWR prior to the end of the third (3rd) year and Project Sponsor is provided reasonable notice thereof. Project Sponsor 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, Project Sponsor agrees to include a similar right of BACWA and DWR, or their representatives, to audit records and interview staff in any contract related to performance of this Implementation Agreement. ANNUAL AND CLOSE-OUT AUDITS: An annual audit as well as a close-out audit will be performed with respect to the State Grant funds that are disbursed pursuant to the State Agreement and this Implementation Agreement. Such audits will be performed at the behest of BACWA and conducted by an independent Certified Public Accountant using Generally Accepted Accounting Principles. The costs of any such audit will constitute administrative costs for which BACWA will bill Project Sponsor and for which Project Sponsor can request reimbursement, consistent with Paragraph 7, above. INCOME RESTRICTIONS: Project Sponsor agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by Project Sponsor in relation to any work performed under this Implementation Agreement shall be paid by Project Sponsor to BACWA, for BACWA’s payment to DWR, to the extent that they are properly allocable to costs for which Project Sponsor has been reimbursed by BACWA under this Implementation Agreement. REMITTANCE OF UNEXPENDED FUNDS: Project Sponsor, within a period of thirty (30) calendar days from the final disbursement from BACWA to Project Sponsor of the State Grant Amount, shall remit to BACWA any unexpended funds that were disbursed to Project Sponsor under this Implementation Agreement and were not needed to pay Eligible Costs for Project. MAINTENANCE OF FILES: BACWA will maintain a complete set of files related to the administration and management of State Grant funds during the period of time in which the State Grant funds are being distributed under the State {00907096}19 Agreement. Such files will be maintained in a location that can be accessed by each of the Participating Water Entities, including Project Sponsor, as well as D.WR personnel. -At the end of the grant period, the files will be moved to a location where they can be expeditiously retrieved for a period of three (3) years after the grant period ends. 49. 50. 51. 52. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS PERMITS, LICENSES, APPROVALS AND LEGAL OBLIGATIONS: Project Sponsor shall be responsible for obtaining any and all permits, licenses, and approvals required for. performing its obligations under this Implementation Agreement. Project Sponsor shall comply with the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.) and other applicable federal, State, and local laws, rules, regulations, guidelines, and requirements prior to disbursement of State Grant funds under this Implementation Agreement. Project Sponsor agrees to comply with all applicable California Labor Code requirements, including prevailing wage provisions. Project Sponsor must, independently or through a third party, adopt and enforce a Department of Industrial Relations-certified Labor Compliance Program (LCP) meeting the requirements of Labor Code section 1771.5 for projects funded by: Proposition 50 (Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002; Cal. Water Code sections 79500 et seq.) Project Sponsor’s failure to comply with the LCP requirements is a substantial breach of this Implementation Agreement. At BACWA’s or DWR’s request, Project Sponsor must promptly submit written evidence of Project Sponsor’s compliance with the LCP requirements. COMPETITIVE BIDDING AND PROCUREMENTS: Project Sponsor shall comply with all applicable laws and regulations regarding securing competitive bids and undertaking competitive negotiations in Project Sponsor’s contracts with other entities for acquisition of goods and services and construction of public works with funds provided by BACWA under this Implementation Agreement. AMERICANS WITH DISABILITIES ACT: By signing this Implementation Agreement, Project Sponsor assures BACWA.that it complies with the Americans With Disabilities Act (the "ADA") of 1990, (42 U.S.C. § 12101.et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. NONDISCRIMINATION: During the performance of this Implementation Agreement, Project Sponsor and its contractors and subcontractors shall not {00907096}20 53. unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer), age (over 40), marital status, and denial of family care leave. Project Sponsor and its contractors and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Project Sponsor and its contractors and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (California Government Code {} 12990(a)-(f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, § 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990(a)-(f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Implementation Agreement by reference and made a part hereof as if set forth in full. Project Sponsor and its contractors and subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Project Sponsor shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under this Implementation Agreement. DRUG-FREE WORKPLACE REQUIREMENTS: Project Sponsor and its contractors and subcontractors will Comply with the requirements of the Drug- Free Workplace Act of 1990 (California Government Code § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions: ao Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code Section 8355(a). b. Establish a Drug-Free Awareness Program, as required by Government Code Section 8355(b), to inform employees, contractors, and subcontractors about the following: i. The dangers of drug abuse in the workplace; ii. Project Sponsor’s policy of maintaining a drug-free workplace; iii.Any available counseling, rehabilitation, and employee assistance programs; and iv.Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations. {00907096}21 54. 55. 56. 57. c.As required by Government Code Section 8355(c), provide that every employee, contractor, and/orsubcontractor who works under this . Implementation Agreement: i.Will receive a copy of Project Sponsor’s drug-free policy statement; and ii.Will agree to abide by the terms of Project Sponsor’s condition of employment, contract, or subcontract. CURRENT STATE EMPLOYEES: Project Sponsor acknowledges and accepts that no State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. Project Sponsor also acknowledges and accepts that no State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services. FORMER STATE EMPLOYEES: Project Sponsor acknowledges and accepts that, for the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. Project Sponsor also acknowledges and accepts that, for the twelve-month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy- making position in the same general subject area~as the proposed contract within the twelve-month period prior to his or her leaving State service. GOVERNING LAW: This Implementation Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. DEFAULT AND INDEMNIFICATION DEFAULT PROVISIONS: Project Sponsor will be in default under this Implementation Agreement if any of the following occur: ao bo Breach of this Implementation Agreement, or any supplement or amendment to it, or any other agreement between Project Sponsor and BACWA evidencing or securing Project Sponsor’s obligations; Making any false warranty, representation, or statement with respect to this Implementation Agreement; c.Failure to operate or maintain Project in accordance with this Implementation Agreement; or {00907096}22 58. d. Failure to make any remittance required by this Implementation Agreement. ShouM an event of default occur, BACWA may do any or all of the following: eo Declare Project Sponsor’s share of the State Grant funds be immediately repaid to BACWA, with interest, which interest shall be equal to State of California general obligation bond interest rate in effect at the time of the default; f. Terminate any obligation to make future payments to Project Sponsor; g.- Terminate this Implementation Agreement; or h. Take any other action that it deems necessary to protect its interests. INDEMNIFICATION; PROPORTIONAL RESPONSIBILITY FOR FINANCIAL SHORTFALL: Project Sponsor agrees to indemnify BACWA and its officers, agents, and employees against and to hold the same free and harmless from any and all claims, demands, damages, losses, costs, expenses, or liability due or incident to, either in whole or in part, and whether directly or indirectly, arising out of Project Sponsor’s implementation, operation, and maintenance of Project. This indemnification provision shall also serve to hold BACWA free from any liability whatsoever that may result from the action or inaction, whatever the case may be, of any of the Participating Water Entities that results in a disruption or discontinuance of the disbursement of the State Grant funds under the State Agreement by DWR, regardless of whether that action or inaction is caused by Project Sponsor. Further, Project Sponsor agrees to contribute to the full financial indemnification of BACWA in the event that DWR requires BA(WA to return any portion of the State Grant funds that have been disbursed by BACWA to another Water Entity and which that particular Water Entity fails to return to BACWA after diligent effort has been made by BACWA to recover such funds. This requirement shall be triggered upon BACWA’s giving notice of the same to Project Sponsor. The particular amount that Project Sponsor will be required to so contribute will either be (1) a proportionate share of the amount that is owed to DWR (which such proportionate share shall be based on the ratio of the State Grant Amount to the total of the Stage Grant funds, i.e., Project Sponsor’s share of the State Grant funds divided by the total of the State Grant funds), or (2) some other amount that is determined by another equitable basis agreed to by Project Sponsor and the remaining Participating Water Entities. Whichever option is utilized, Project Sponsor agrees to fully confer and cooperate with the other Participating Water Entities to ensure that BACWA will not have to pay any of its own funds to DWR. In no event, however, shall Project Sponsor be required to contribute any amount under this Paragraph that is over and above the State Grant Amount reflected in Paragraph 3, above, and summarized in Exhibit "D", Budget. {00907096}23 59. 60. Notwithstanding the above, nothing in this Paragraph shall be construed to require Project Sponsor to indemnify BACWA in the manner set forth in, under, and pursuant to this Paragraph against any claim arising directly from the active negligence or willful misconduct of BACWA. BACWA agrees to seek full financial indemnification from Project Sponsor and all other Participating Water Entities in the manner set forth in this Paragraph prior to pursuing any separate right of action for the same under the BACWA Joint Powers Agreement. REMEDIES, COSTS AND ATTORNEY FEES: Project Sponsor agrees that any remedy provided in this Implementation Agreement is in addition to and not in derogation of any other legal or equitable remedy available to BACWA as a result of breach of this Implementation Agreement by Project Sponsor, whether such breach occurs before or after completion of Project, and exercise of any remedy provided by this Implementation Agreement by BACWA shall not preclude BACWA from pursuing any legal remedy or right which would otherwise be available. In the event of litigation between BACWA and Project Sponsor arising from this Implementation Agreement, it is agreed that the prevailing party shall be entitled to such reasonable costs and/or attorneys’ fees as may be ordered by the court. TERMINATION, IMMEDIATE REPAYMENT, INTEREST: This Implementation Agreement may be terminated by written notice at any ~ime prior to completion of Project, at the option of BACWA, upon violation by Project Sponsor of any material provision of this Implementation Agreement after such violation has been called to the attention of Project Sponsor and after failure of Project Sponsor to bring itself into compliance with the provisions of this Implementation Agreement within a reasonable time as established by BACWA. In the event of such termination, Project Sponsor agrees, upon demand, to immediately repay to BACWA an amount equal to the amount of State Grant funds disbursed to Project Sponsor prior to such termination. In the event of such 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 Project Sponsor to the date of full repayment by Project Sponsor. Project Sponsor also acknowledges and accepts that the State Agreement may be terminated by written notice at any time prior to completion of the various projects to be carried out by the Participating Water Entities, at the option of DWR, upon violation by any of the Participating Water Entities of any material provision of the State Agreement after such violation has been called to the attention of the Water Entity in question and after failure of the Water Entity in question to bring itself into compliance with the provisions of the State Agreement within a reasonable time as established by DWR. Therefore, in the event of such termination, regardless of whether it is the fault of Project Sponsor or one of the other Participating Water Entities, Project Sponsor agrees, upon demand, to immediately repay to BACWA an amount equal to the State Grant {00907096}24 61. Amount disbursed to Project Sponsor prior to such termination of the State Agreement. Project Sponsor further agrees that in the event of such 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 Project Sponsor to the date of full repayment by Project Sponsor. WAIVER OF RIGHTS: None of the provisions of this Implementation Agreement shall be deemed waived unless expressly waived in writing. It is the intention of BACWA and Project Sponsor that from time to time either party may waive any of its rights under this Implementation Agreement unless contrary to law. Any waiver by either BACWA or Project Sponsor of rights arising in connection with this Implementation Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect. 62. 63. 64. REMAINING GENERAL TERMS AND CONDITIONS STATE BUDGET CONTINGENCY: Project Sponsor acknowledges and accepts that if the State Budget Act of the current year and/or any subsequent years covered by this Implementation Agreement does not appropriate sufficient funds for the projects to be carried out by each of the Participating Water Entities, including Project Sponsor’s Project, this Implementation Agreement shall be of no force and effect. State appropriation of funds shall be construed as a condition precedent to the obligation of BACWA to make any payments under this Implementation Agreement. In this event, BACWA shall have no liability t° pay any funds whatsoever to Project Sponsor or to furnish any other consideration under this Implementation Agreement and Project Sponsor shall not be obligated to perform any provisions of this Implementation Agreement. Nothing in this Implementation Agreement shall be construed to provide Project Sponsor with a right of priority for payment over any of the other Participating Water Entities. If funding for any fiscal year is reduced or deleted by the State Budget Act for purposes of the program contemplated by the State Agreement, BACWA shall have the option to either cancel this Implementation Agreement with no liability occurring to BACWA, or offer an Implementation Agreement amendment to Project Sponsor to reflect the reduced amount. INDEPENDENT CAPACITY: Project Sponsor, and the agents and employees of Project Sponsor, if any, in the performance of this Implementation Agreement, shall act in an independent capacity and not as officers, employees, or agents of BACWA. OPINIONS AND DETERMINATIONS: BACWA and Project Sponsor agree that review or approval of any Project-related applications, documents, permits, {00907096}25 65. 66. 67. plans, and specifications or other Project-related information by BACWA is for administrative purposes only and does not relieve Project Sponsor of its responsibility to properly plan, design, construct, operate, maintain, implement, or otherwise carry-out Project. CLAIMS BY PROJECT SPONSOR: Any claim that Project Sponsor may have regarding the performance of this Implementation Agreement, including but not limited to claims for additional compensation or extension of time, shall be submitted to BACWA’s Project Manager within thirty (30) days of Project Sponsor’s knowledge of the claim. BACWA and Project Sponsor shall then attempt to negotiate a resolution of such claim and process an amendment to this Implementation Agreement to carry-out the terms of any such resolution. NOTICES: Any notice, demand, request, consent, or approval that either BACWA or Project Sponsor desires or is required to give to the other party under this Implementation Agreement shall be in writing. Notices may be sent by any of the following means: (a) by delivery in person; (b) by certified U.S. mail, return receipt requested, postage prepaid; (c) by "overnight" delivery service by a recognized courier service, provided that next-business-day delivery is requested by the sender; or (d) by facsimile transmission, followed by submittal of a hard copy. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effectively given five (5) calendar days after the date deposited with the U.S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent by facsimile will be effective on the date of successful transmission, which is documented in writing. Notices shall be sent to the following addresses. Either BACWA or Project Sponsor may, by written notice to the other, designate a different address that shall be substituted for the’ one below: Bay Area Clean Water Agencies Attention: Michele M. Pla, Executive Director 6114 LaSalle Avenue, #456 Oakland, CA 94611-2802 Telephone: (510) 547-1174 Facsimile: (510) 658-5146 City of Palo Alto Attention: James Keene, City Manager 250 Hamilton Ave. Pato Alto, CA 94301 Telephone: (650) 329-2392 Facsimile No.: (650) 325-5025 TRAVEL: Project Sponsor agrees that travel and per diem costs shall NOT be eligible for reimbursement with State Grant funds, and shall NOT be eligible for computing Project Sponsor cost match. Travel includes the costs of {00907096}26 68. 69. 70. 71. transportation, subsistence, and other associated costs incurred by personnel during the term of this Implementation Agreement. INSPECTION OF BOOKS, RECORDS AND REPORTS: During regular office hours, BACWA and Project Sponsor, and their duly authorized representatives, shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Implementation Agreement or matters related thereto. BACWA and Project Sponsor shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Implementation Agreement. Project Sponsor acknowledges and accepts that DWR shall also have the right to inspect and to make copies of any books, records, or reports of Project Sponsor pertaining to this Implementation Agreement or matters related thereto, and Project Sponsor shall make available at all times for such inspection by DWR accurate records of all its costs, disbursements, and receipts with respect to Project Sponsor’s activities under this Implementation Agreement. Failure or refusal by Project Sponsor to comply with this provision shall be considered a breach of this Implementation Agreement, and BACWA may withhold disbursements to Project Sponsor or take any other action it deems necessary to protect its interests. DELIVERY OF INFORMATION, REPORTS AND DATA: Project Sponsor agrees to expeditiously provide, during work on Project and throughout the term of this Implementation Agreement, such reports, data, information, and certifications as may be reasonably required by BACWA. RIGHTS IN DATA: Project Sponsor 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 Implementation Agreement shall be in the public domain. Project Sponsor may disclose, disseminate, and use in whole or in part any final form data and information received, collected, and developed under this Implementation Agreement, subject to appropriate acknowledgment of credit to DWR and BACWA for financial support. Project Sponsor shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. DISPOSITION OF EQUIPMENT: Project Sponsor shall provide to BACWA, not less than thirty (30) days prior to submission of Project Sponsor’s final invoice to BACWA, a final inventory list of equipment purchased with State Grant funds provided by BACWA. Project Sponsor shall consult with BACWA on the scope of the inventory not less than sixty (60) days prior to the submission of the final invoice. The inventory shall include all items with a current estimated fair market value of more than $500 per item and which are not an integral part of Project, to be permanently installed and dedicated solely to Project. Within one- hundred (100) days of receipt of such inventory, BACWA shall provide Project Sponsor with a list of the items on the inventory that DWR will take title to. All {00907096}27 72. 75. 76. 77. other items shall become the property of Project Sponsor. DWR shall arrange for delivery from Project Sponsor of items that it takes title to. Cost of transportation, if _any, shall be borne by DWR. COMPUTER SOFTWARE: Project Sponsor certifies that it has appropriate systems and controls in place to ensure that State Grant funds will not be used in the performance of this Implementation Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws. TIMELINESS: Time is of the essence in this. Implementation Agreement. AMENDMENT: No amendment or variation of the terms of this Implementation Agreementshatl be valid unless made in writing, signed by BACWA and Project Sponsor, and approved as required. No oral understanding’ or agreement not incorporated in this Implementation Agreement is binding on BACWA or Project Sponsor. SEVERABILITY OF UNENFORCEABLE PROVISION: If any provision of this Implementation Agreement is held invalid or unenforceable by a court of final jurisdiction, all other provisions of this Implementation Agreement shall be construed to remain fully valid, enforceable, and binding on BACWA and Project Sponsor. SUCCESSORS AND ASSIGNS: This Implementation Agreement and allof its provisions shall apply to and bind the successors and assigns of BACWA and Project Sponsor. No assignment or transfer of this Implementation Agreement or any part thereof, rights hereunder, .or interest herein by Project Sponsor shall be valid unless and until it is approved by BACWA and made subject to such reasonable terms and conditions as BACWA may~impose. PERFORMANCE EVALUATION: Project Sponsor acknowledges and accepts that, pursuant to Paragraph 23 of the State Agreement, BACWA’s performance under the State Agreement will be evaluated by DWR after completion. To the extent that any obligations are imposed upon BACWA by Paragraph 23 of the State Agreement, Project Sponsor hereby agrees to cooperate with BACWA in any way necessary to ensure that such obligations are met. IN WITNESS WHEREOF, BACWA and Project Sponsor have executed this Implementation Agreement as of ., 2008. BAY AREA CLEAN WATER AGENCIES CITY OF PALO ALTO {00907096}28 By: By: David W. Tucker James Keene Its: Chair Its: City Manager {00907096}29 Exhibit A STATE OF CALIFORNIA THE RESOURCES AGENCY DEPARTMENT OF WATER RESOURCES Agreement Number 4600007654 GRANT AGREEMENT BETWEEN STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES AND Bay Area Clean Water Agencies AGREEMENT NUMBER 4600007654 UNDER THE WATER SECURITY, CLEAN DRINKING WATER, COASTAL AND BEACH PROTECTION ACT OF 2002 (Water Code Section 79500 et seq.) THIS GRANT AGREEMENT, entered into by and between State of California, acting by and through the Department of Water Resources, herein referred to as the. "State" and the Bay Area Clean Water Agencies, a public agency in the Counties of Marin, San Francisco, San Mateo, Napa, Solano, Alameda, Contra Costa, Santa Clara, Sonoma, State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee", which parties do hereby agree as follows: PURPOSE OF GRANT: This Grant is made by State to Grantee to assist in financing projects associated with the San Francisco Bay Area Integrated Regional Water Management Plan pursuant to Chapter 8 (commencing with Section 79560) of Division 26.5 of the California Water Code, hereinafter collectively referred to as "IRWM Program." Grant funds may be used only as provided in this Grant Agreement for Eligible Costs as included in Exhibit A, Work Plan. o TERM OF GRANT AGREEMENT: The term of this Grant Agreement begins on March 20, 2007 (effective date), and terminates on December 31,2014, or when all of the Parties’ obligations under this Grant Agreement have been fully satisfied, whichever occurs earlier. SCHEDULE: Grantee shall diligently perform or cause to be performed all IRWM Program work as described in Exhibit A, Work Plan, in accordance with Exhibit B, Schedule. GRANT AMOUNT: The maximum amount payable by State under this Grant Agreement shall not exceed $12,500,000. o GRANTEE’S COST: The reasonable total costs of the Program are estimated to be $108,278,220 which is depicted in Exhibit C, Budget Table 1. Grantee agrees to fund or ensure funding of the difference, if any, between the estimate of IRWM Program cost and the Grant Amount specified in paragraph 4. Grantee local cost and other state funds are estimated to be $95,778,220, with a required local match of $11,229,500. ELIGIBLE COST: Grantee shall apply State Grant funds received only to Eligible Costs. Eligible Costs are the reasonable and necessary costs of engineering, design, legal fees, land and easement, preparation of environmental documentation, environmental mitigation, and project implementation. Only work performed after the effective date of this Grant Agreement shall be eligible for reimbursement. Costs incurred after November 5, 2002, and prior to the effective date of this Grant Agreement are not eligible for reimbursement. However, such costs may be considered, at State’s discretion, as part of Grantee’s funding match, if such costs were otherwise reimbursable. Reasonable administrative expenses may be included as project costs and will Page 1 of 83 Exhibit A Agreement Number 4600007654 depend on the complexity of the project preparation, planning, coordination, construction, acquisitions, implementation and maintenance. Reimbursable administrative expenses are the necessary costs incidentally but directly related to the project including an appropriate pro-rata allocation of overhead and administrative expenses that are regularly assigned to all such projects in accordance with the staridai~d accounting practices of the Grantee. Costs that are not reimbursable with grant funds include, but may not be limited to, the following: ¯Costs incurred prior to March 20, 2007. ¯Operation and maintenance costs, including post construction performance and monitoring costs. ¯Purchase of equipment not an integral part of a project. ¯Establishing a reserve fund. ¯Purchase of water supply. ¯Replacement of existing funding sources for ongoing programs. ¯Support of existing agency requirements and mandates. ¯Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project., as set forth and detailed by engineering and feasibility studies, or land purchased prior to the effective date of this Grant Agreement. ¯Payment of principal or interest of existing indebtedness or any interest payments unless the debt is incurred after execution of this Grant Agreement, the State agrees in writing to the eligibility of the costs for reimbursement before the debt is incurred, and the purposes for. which the debt is incurred are otherwise eligible costs. Overhead not directly related to Program costs. o 8. GRANTEE RESPONSIBILITY: Grantee and its representatives, with the authority to act for Grantee, shall be responsible f6r work and for persons or entities engaged in work, including, but not limited to, subcontractors, suppliers, and providers of services. Grantee or its representatives shall provide regular inspections of any construction work in progress. Grantee and its representatives shall fulfill its obligations under the Grant Agreement and the IRWM Program, and shall be responsible to keep all work under control. Grantee shall be responsible for any and all disputes arising out of its contracts for work on the IRWM Program, including but not limited to bid disputes and payment disputes with Grantee’s representatives, Local Project Sponsors, contractors and subcontractors. State will not mediate disputes between Grantee and any other entity concerning responsibility for performance of work. LOCAL PROJECT SPONSOR RESPONSIBILITY: Grantee shall assign Local Project Sponsors to act on behalf of Grantee for the purposes of individual Project management, oversight, compliance, and operations and maintenance. Local Project Sponsors shall be assigned in accordance with the participating agencies identified in the San Francisco Bay Area IRWM Plan. Grantee shall be considered a Local Project Sponsor for projects sponsored by Grantee. Local Project Sponsors shall also act on behalf of Grantee in the fulfillment of Grantee responsibilities where specifically provided in this Grant Agreement. Exhibit G identifies Local Project Sponsors. RELATIONSHIP OF PARTIES: Grantee and Local Project Sponsors are solely responsible for design, construction, and operation and maintenance of Projects within the San Francisco Bay Area IRWM Program. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of grant funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee and Local Project Sponsors under this Grant Agreement. Page 2 of 83 Exhibit A Agreement Number 4600007654 10.GRANTEE REPRESENTATIONS: Grantee accepts and agrees to comply with all terms, provisions, conditions, and commitments of this Grant Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in-the application,-documents, amendments, and communications filed in support of its request for California Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 financing. Grantee warrants that all Local Project Sponsors will be contractually required to comply with this Grant Agreement for their respective project or projects. In the event that Grantee fails to secure an agreement with any of the Local Project Sponsors by December 31, 2008, the Grantee will not be held responsible for the associated local project sponsor activities under Section 7 of this Grant Agreement, and State may reduce the grant according to the portion of grant intended for the nonparticipating Local Project Sponsor(s). In addition, in the event the Grantee fails to secure an agreement with any of the Local Project Sponsor(s), the Grantee shall submit to the Department a revised grant agreement Scope of Work within four months of the failure to secure such an agreement. .Grantee shall submit to the Department copies of all agreements with Local Project Sponsors within two months of the execution of such agreements. 11.IRWM PROGRAM PERFORMANCE AND ASSURANCES: Grantee agrees to faithfully and expeditiously perform or cause to be performed all IRWM Program work as described in the final plans and specifications under this Grant Agreement and implement the Program in accordance with applicable provisions of the law. In the event State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, Grantee agrees to pay all costs incurred by State including, but not limited to, reasonable attorneys’ fees, legal expenses, and costs. 12.REQUIREMENTS FOR DISBURSEMENT: Grantee shall, by June 30, 2009, meet all conditions precedent to the disbursement of money under this Grant Agreement, including Basic Conditions, paragraph 13. Failure by Grantee to comply by this date may, at the option of State, result in termination of the Grant Agreement under Exhibit D, Standard Conditions. For disbursements of funds for each project, Grantee shall continue to meet the Basic Conditions as well as the Conditions for Disbursement, paragraph 14. 13.BASIC CONDITIONS: State shall have no obligation to disburse money for a project under this Grant Agreement unless and until Grantee has satisfied for such project the State’s requirements for disbursement in accordance with the California Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 which include: a) Adoption of an Integrated Regional Water Management Plan. b) Grantee demonstrates the designated Local Project Sponsors for each project are aware of and comply with the provisions of the Grant Agreement between State and Grantee. c) Grantee demonstrates the availability of sufficient funds to complete the project, taking into account that portion of the Grant Amount, specified in Paragraph 4 that has yet to be disbursed. d)Grantee demonstrates that it has complied with all applicable requirements of the California Environmental Quality Act and the National Environmental Policy Act by submitting copies of any environmental documents, including environmental impact reports, environmental impact statements, negative declarations, mitigation agreements, .and environmental permits as may be required prior to beginning construction/implementation. Page 3 of 83 14. !5. Exhibit A Agreement Number 4600007654 e) For the term of this Grant Agreement, Grantee submits timely periodic progress reports as required by paragraph 21. CONDITIONS FOR DISBURSEMENT: Prior to disbursement of funds, for each project, by State, Grantee shall submit to State: a) Final plans and specifications certified by a California Registered Civil Engineer as to compliance with the approved project as defined in paragraph 1. b) A written statement that all necessary permits, easements, rights-of-way, and approvals as may be required by other State, federal, and/or local agencies as specified in paragraph 26 have been obtained. METHOD OF PAYMENT: After the disbursement requirements in paragraph 12 are met, State will disburse the whole or portions of the Grant commitment to Grantee, following receipt from Grantee of an invoice for costs incurred, and timely progress reports as required by paragraph 21. Invoices submitted by Grantee shall include the following information: a) Costs incurred for work performed in implementing the IRWM Program or program contracts during the period identified in the particular invoice. b) Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for a project during the period identified in the particular invoice for the construction, operation, or maintenance of a project. c) Any appropriate receipts and reports for costs incurred. d) Invoices shall be submitted on forms provided by State and shall meet the following format requirements: i. Invoices must contain the date of the invoice, the time period covered by the invoice, and the total amount due. ii.Invoices must be itemized based on the categories specified in the Budget, Exhibit C. The amount claimed for salaries/wages/consultant fees must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s grant amount, paragraph 4 and those costs that represent Grantee’s and Local Project Sponsors’ costs, as applicable, paragraph~ 5. iv. Original signature and date (in ink) of Grantee’s Project Manager Payment will be made no more than monthly, in arrears, upon receipt of an invoice bearing the Grant Agreement number. Submit the original and three (3) copies of the invoice form to the following address: Department of Water Resources Division of Planning and Local Assistance Conjunctive Water Management Branch Attention: IRWM Grant Analyst Overnight/Hand Delivery Address: 901 P Street, Room 213A Sacramento CA 95814 Mailing Address: P. O. Box 942836 Sacramento, CA 94236-0001 Page 4 of 83 16. 17. 18. 19. 20. 21. Exhibit A Agreement Number 4600007654 DISBURSEMENT: Following the review of each invoice, State will disburse to Grantee the amount approved, subject to the availability of funds through normal State processes. Once an individual project has expended the amount specified in the column entitled "Required Local Cost Share" in Exhibit C, Table 1, grant funds will then be disbursed on that project up to its maximum grant award as depicted_ in Exhibit C, B~adget Tables 1 and 2. Any and all money disbursed to Grantee under this Grant Agreement and any and all interest earned by Grantee on such money shall be used solely to pay Eligible Costs. WITHHOLDING OF GRANT DISBURSEMENT BY STATE: If State determines that a project is not being constructed substantially in accordance with the provisions of this Grant Agreement, or that Grantee has failed in any other respect to comply substantially with the provisions of this Grant Agreement, and if Grantee does not remedy any such failure to State’s satisfaction, State may withhold from Grantee all or any portion of the Grant.Commitment and take any other action that it deems necessary to protect its interests. WITHHOLDING A PORTION OF THE GRANT AMOUNT: If State makes a determination applicable to only a portion of the grant scope that Grantee has not substantially complied with the Grant Agreement’s requirements pursuant to paragraph 17, State shall notify Grantee of its determination. State may withhold a portion of the Grant Commitment and require that Grantee immediately repay all or any portion of the disbursed grant amount with interest, consistent with its determination. State may consider Grantee’s refusal to repay the requested disbursed grant amount a contract breach subject to the default provisions in paragraphs 19 and 20. If State withholds a portion of the grant amount, State may require Grantee to submit a revised Work Plan, Schedule, and Budget for State’s approval before State disburses any additional grant amount. WITHHOLDING THE ENTIRE GRANT AMOUNT: If State notifies Grantee of its decision to withhold the entire grant amount from Grantee pursuant to paragraph 17, this Grant Agreement shall terminate upon receipt of such notice by Grantee and shall no longer be binding on either party. DEFAULT PROVISIONS: Grantee will be in default under this Grant Agreement if any of the following occur: Breach of this Grant Agreement, or any supplement or amendment to it, or any other agreement between Grantee and State evidencing or securing Grantee’s obligations; ,Making any false warranty, representation, or statement with respect to this Grant Agreement; ¯Failure to operate or maintain projects in accordance with this Grant Agreement; or ¯Failure to make any remittance required by this Grant Agreement. Should an event of default occur, State may do any or all of the following: ’ ° Declare the Grant be immediately repaid, with interest, which shall be equal to State of California general obligation bond interest rate in effect at the time of the default; °Terminate any obligation to make future payments to Grantee; °Terminate the Grant Agreement; and °Take any other action that it deems necessary to protect its interests. SUBMISSION OF REPORTS: The submittal and approval of all reports is a requirement for the successful completion of this Grant Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to State. All reports shall be submitted to the State’s Project Manager, and shall be submitted in both electronic and hard copy forms. If requested, Grantee shall promptly provide any additional information deemed necessary by State for approval of reports. Reports shall be presented in the formats described in Exhibit E, Report Format. The submittal and approval of reports is a requirement for initial and continued Page 5 of 83 22. 23. 24. Exhibit A Agreement Number 4600007654 disbursement of State funds. Submittal of a Project Completion Report for each project listed on Exhibit A, Work Plan, is a requirement for the release of any funds retained for such project. ¯Quarterly Reports: Beginning October 31, 2008, and for the duration of the Grant Agreement, Grantee shall submit to State a quarterly report which explains the status of each project described in the Work Plan, Exhibit A. Reports shall be submitted by the last day of January, April, July, and October for the preceding quarter. Progress reports shall summarize the work completed for each project during the reporting period. Quarterly reports shall include, for each project, a statement of progress compared to the schedule contained in Exhibit B, Schedule, and a comparison of actual costs to date to the budget contained in Exhibit C, Budget. ¯Project Completion Reports: Grantee shall prepare and submit to State a separate Project Completion Report for each project included in EXhibit A, Work Plan. Grantee shall submit a Project Completion Report within ninety (90) calendar days of completion of all tasks associated with a project. Each Project Completion Report shall include a description of actual work done, a final schedule showing actual progress versus planned progress, and copies of any final documents or reports generated or utilized during a project. The Project Completion Report shall also include, if applicable, certification of final project by a registered civil engineer, consistent with Standard Condition D- 14 of this Grant Agreement. ° Grant Completion Report: Upon completion of all projects included in Exhibit A, Work Plan, Grantee shall submit to State a Grant Completion Report. The Grant Completion Report shall be submitted within ninety (90) calendar days of submitting the Project Completion Report for the final project to be completed under the Grant Agreement. The Grant Completion Report shall include a brief description of each project completed and how they will further the goals of the IRWM Plan; identify any changes.to the IRWM Plan, as a result of project implementation; and an updated IRWM Plan, if applicable. Post Performance Reports: Grantee shall submit a Post Performance Report for each project. Post Performance Reports shall be submitted to State within ninety (90) calendar days after the first operational year of a project has elapsed. In subsequent operational years, all Post Performance Reports for projects completed under this Grant Agreement shall be submitted concurrently, and no later than the last day of March o~" each year. This record keeping and reporting process shall be repeated, for each project, annually for a total of 10 years after the completed project begins operation. MONITORING REQUIREMENTS; Grantee shall ensure that all groundwater projects and projects that include groundwater monitoring requirements are consistent with the Groundwater Quality Monitoring Act of 2001 (Part 2.76 (commencing with Section 10780) of Division 6 of the Water Code) and, where applicable, that projects that affect water quality shall include a monitoring component that alloWs the integration of data into statewide monitoring efforts, including where applicable, the surface water ambi(nt monitoring program carried out by the State Water Resources Control Board. Exhibit H, Statewide Monitoring, provides guidance on such monitoring requirements. PERFORMANCE EVALUATION: Grantee’s performance under this agreement will be evaluated by State after completion. USEFUL LIFE OF PROJECTS: For the purpose of this Agreement, and unless otherwise noted, the useful life of any constructed portions of the projects covered by this Work Plan begins upon completion of construction and continues until fifty (50) years thereafter for pipelines and Page 6 of 83 Exhibit A Agreement Number 4600007654 structures and twenty (20) years for all else. Elements 2, 3, 4 and 16 do not include any construction. 25. 26. OPERATION AND MAINTENANCE OF PROJECT: For the useful life of the projects and in consideration of the Grant haade by State, Grantee agrees to ensure or cause to be performed the commencement and continued operation of the projects, and shall ensure or cause the projects to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The Grantee shall ensure that all operations and maintenance costs of the facilities and structures are contractually assumed by the appropriate Local Project Sponsors for their respective projects; State shall not be liable for any ¯ cost of such maintenance, management, or operation. Grantee or Local Project Sponsors may be excused from operations and maintenance only upon the written approval of the State’s Project Manager. For purposes of this Grant 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 for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal of Grantee to ensure operation and maintenance of the projects in accordance with this provision may, at the option of State, be considered a breach of this Grant Agreement and may be treated as default under paragraph 20. PERMITS, LICENSES, APPROVALS, AND LEGAL OBLIGATIONS: Grantee and Local Project Sponsors shall be responsible for ensuring any and all permits, licenses, and approvals required for performing their obligations under this Grant Agreement are obtained, and shall comply with the California Environmental Quality Act (California Public Resources Code Section 21000 et seq.) and other applicable federal, State and local laws, rules, and regulations, guidelines, and requirements for each project described in Exhibit A, Work Plan, prior to disbursement of funds under this Grant Agreement. Grantee agrees to comply with all applicable Ca!ifornia Labor Code requirements, including prevailing wage provisions. Grantee must, independently or through a third party, adopt and enforce a Department of Industrial Relations-certified Labor Compliance Program (LCP) meeting the requirements of Labor Code section 1771.5 for projects funded by: Proposition 50 (Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002; Cal. Water Code sections 79500 et seq.). Grantee’s failure to comply with the LCP requirements is a substantial breach of this Agreement. At the State’s request, grantee must promptly submit written evidence of Grantee’s compliance with the LCP requirements. 27.NOTIFICATION OF STATE: For each project, Grantee shall promptly notify, in writing, State of the following items: a) Events or proposed changes that could affect the scope, budget, or work performed under this Grant Agreement. Grantee agrees that no substantial change in the scope of a project wilt be undertaken until written notice of the proposed change has been provided to State and State has given written approval for such change. b) Any public or media event publicizing the accomplishments and/or results of this Grant Agreement and provide the opportunity for attendance and participation by State’s Page 7 of 83 28. 29. Exhibit A Agreement Number 4600007654 representatives. Grantee shall make such notification at least fourteen (14) calendar days prior to the event. c) Completion of work on a project. d) Final inspection of a project by a Registered Civil Engineer, as determined and required by State, and in accordance with Standard Condition D-14, and provide State the opportunity to participate in the inspection. Grantee shall make such notification at least fourteen (14) calendar days prior to the final inspection. PROJECT MANAGERS: Either party may change its Project Manager upon written notice to the other party. ¯State’s Project Manager: State’s Project Manager shall be the Chief, Division of Planning and Local Assistance, Department of Water Resources. State’s Project Manager shall be State’s representative and shall have the authority to make determinations and findings with respect to each controversy arising under or in connection with the interpretation, performance, or payment for work performed under the Grant Agreement. °Grantee’s Project Manager: Grantee’s Project Manager shall be Executive Director, Bay Area Clean Water Agencies. Grantee’s Project Manager shall be the Grantee’s representative for the administration of the Grant Agreement and shall have full authority to act on behalf of the Grantee, including authority to execute all payment requests. NOTICES: Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Grant Agreement shall be in writing. Notices may be sent by any of the following means: (i) by delivery in person; (ii) by certified U.S. mail, return receipt requested,.postage prepaid; (iii) by "overnight" delivery service; provided that next- business-day delivery is requested by the sender; or (iv) by facsimile transmission, followed submittal of a hard copy. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given seven (7) calendar days after the date deposited with the U. S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent by facsimile will be effective on the date of successful transmission, which is documented in writing. Notices shall be sent to the following addresses. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below: State of California Department of Water Resources Division of Planning and Local Assistance Attention: Chief, Division of Planning and Local Assistance Conjunctive Water Management Branch Post Office Box 942836 Sacramento, California 94236-0001 Executive Director Bay Area Clean Water Agencies 6114 LaSalle Ave, #456 Oakland, CA 94611 Page 8 of 83 30. Exhibit A Agreement Number 4600007654 INCORPORATION OF STANDARD CONDITIONS AND GRANTEE COMMITMENTS: The following exhibits are attached and made a part of this Grant Agreement by this reference: Exhibit A - Work Plan Exhibit B - Schedule Exhibit C ~- Budget Exhibit D - Standard Conditions Exhibit E - Report Format Exhibit F - Grantee Resolution Exhibit G - Local Project Sponsors Exhibit H - Statewide Monitoring IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement. STATE OF CALIFORNIA DEPARTMENT OF WATER RESOUCES BAY AREA CLEAN WATER AGENCIES Kamyar Guivetchi, P.E. Chief, Division of Planning and Local Assistance David W. Tucker Chair, Executive Management Board Date Date Approved as to Legal Form and Sufficiency David Sandino Chief Counsel, Office of Chief Counsel Date Page 9 of 83 Exhibit A EXHIBIT A WORK PLAN Proposition 50 Chapter 8 Implementation Grant Bay Area Integrated Regional Water Management Plan Agreement Number 4600007654 Element Element Element Element Element Element Element Element Element Element Element Element Element Element Element Element Table of Contents 1. CCWD-EBMUD Regional Intertie, Variable Frequency Drives (CCWD) 2. Regional Conservation Outreach Campaign Project (BACWA) 3. California WaterStar Initiative Water Efficient Product Testing and Labeling (EBMUD) 4. New Business Guidebook Pilot Program Project (EBMUD) 5. Redwood City Recycled Water Project Distribution Pipeline Bid Package 7(Redwood City) 6. Mountain View / Moffett Recycled Water Pipeline Project (Palo Alto) 7. South Bay Advanced Recycled Water Treatment Project (SCVWD & San Jose) 8. Richmond Advanced Recycled Expansion (RARE) Water Project (EBMUD) 9. Pacifica Recycled Water Project (North Coast Water District) 10. North Marin Recycled Water Project (North Marin Water District) 11. M0cho Groundwater Demineralization Plant Project (Zone 7 Water Agency) 12. Direct-Installation Commercial High-Efficiency Toilet Program (Marin Municipal WD)" 13. Groundwater Exploration Project (Montara Water & Sanitary District) 14. Alameda Creek Phase 2 Fish Passage Project (ACWD) 15. Napa Sonoma Marsh Restoration / Recycled Water Project (SVCSD) 16. Grant Administration (BACWA) Page 10 of 83 Exhibit A Element 1. CCWD-EBMUD Regional Intertie, Variable Frequency Drives Project Sponsor: Contra Costa Water District Agreement Number 4600007654 Project Description Contra Costa Water District (CCWD) and East Bay Municipal Utility District (EBMUD) recently completed a 100 mgd connection between their water supply systems (Phase 1 of the project) that increases security and emergency preparedness for 1.7 million people. This intertie allows water to be supplied in either direction (EBMUD to CCWD or CCWD to EBMUD) under limited operating conditions. Phase 2 would allow greater operating flexibility in the timing and rate of supply which would expand the operating scenarios under which the intertie could be used for emergencies or during planned outages of major facilities and save energy by reducing the need for throttling. Without variable frequency drives (VFDs), the water transfer can only be accomplished when CCWD and EBMUD pumping rates are exactly matched, a very difficult operational scheme due to the size of the pumping units which are constant speed pumps and operate at 30 MGD to 70 MGD increments. The addition of VFDs to CCWD’s pumps means that CCWD can dial in and pump exactly the amount of water that can be received and pumped by EBMUD without throttling and without impact on CCWD’s operations. Phase 2 of the intertie project entails installation of VFDs on new pumps being constructed by CCWD at Victoria Canal. Design for this phase of the project is complete. The Phase 2 project schedule includes the following milestones: design completion by April 2008; procurement in fall 2008; installation in early 2010, and; operational by summer 2011. Benefits specific to Phase 2 of the project include: ¯Increased water supply reliability - ¯Reduced energy use ¯Increased operating flexibility Project Components " Task 1. Direct Project Administ~’ation Direct Project Administration (DPA) includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $10,000 are a local cost. t Task 2. Land Purchase/Easement There are no additional property requirements for the installation of VFDs instead of constant speed pump motors. Land acquisition for the Victoria Canal Pumping Plant is complete. Task 3. Planning/Design/Engineering/Environmental Documentation Planning documents have been prepared to demonstrate the viability of the project. Phase 2 design for this project, contracted to Carollo Engineers is complete. The VFDs wilt be installed as part of the construction of the new pumping plant at Victoria Canal which has a certified Environmental Impact Report (EIR). There are no additional impacts associated with using VFDs instead of constant speed motors. Additionally, there are no special permits required to install or operate VFDs instead of constant speed pump motors. The permitting process to construct and operate the new pump station is well under way, with biological opinions received from United States Fish and Wildlife Service (USFWS) & National Marine Fisheries Services (NMFS), applications submitted to the U.S. Army Corps of Engineers (Corps) and California Department of Fish and Game (DFG), and initial discussions held with State Water Resources Control Board (SWRCB) regarding approval of a change in point of diversion. Phase 2 Design is estimated to cost approximately $200,000. These costs will not funded by this grant. Page 11 of 83 Exhibit A Agreement Number 4600007654 Task 4. Const~’uction!Implementation Phase 2 facilities include two 3,000 horsepower VFDs and related electrical equipment at CCWD’s Victoria Canal Pump Station. The VFDs will be housed in a 2200 sq ft concrete building to protect the sensitive electrical components in the VFDs .from dust and dirt and the building must be equipped with temperature control to provide an ~nvironment that ensures long equipment life. Construction will begin early 2010 with system operational by summer 2011. Total construction costs are estimated at $1.7 M for the VFDs &which $500,000 will be funded by this Proposition 50, Chapter 8 grant. Task 5. Environmental Compliance /Mitigation /Enhancement Phase 2 will be constructed as part of CCWD’s new pumping plant on Victoria Canal for which an EIR/Environmental impact Statement (EIS) has been completed. The CCWD Board of Directors certified the EIR for that project in November 2006. CCWD anticipates that the U.S. Bureau of t(eclamation, the National Environmental Policy Act (NEPA) lead, will issue the Record of Decision in June 2008. The installation of VFDs instead of constant speed motors does not require additional environmental documentation. Task 6. Construction Administration Construction Administration includes Construction Management services. These work items include the following: review contractor’s schedule and make recommendations; manage and coordinate all project inquiries; manage and coordinate all contractor correspondence; maintain detailed project records; receive, log, and distribute all submittals for review; inspect completed construction; recommend final payment and submit all project files for archiving. Total construction administration costs are estimated at $275,980. These costs will not be funded by this grant. Task 7. Other Costs No other work items have been identified. Task 8. Contingency Contingency is estimated at $230,800 based on 20% of the estimated base construction cost. These costs will not be funded by this grant. ~ Page 12 of 83 Exhibit A ’ Agreement Number 4600007654 Element 2. Regional Conservation Outreach Campaign Project Project Sponsor: Bay Area Clean Water Agencies (BACWA) in partnership with the San Francisco PuNic Utilities Commission (SFPUC), members of the Bay Area Water Agencies Coalition (BAWAC), and the City of Napa. Project Description The Regional Water Conservation Outreach campaign will include a regional media campaign aimed at reminding Bay Area residents and businesses that water is a precious resource that should be used efficiently. The media campaign will highlight simple and effective steps Bay Area residents and businesses can take to conserve water now and for the future. In an effort to reach the entire Bay Area, the campaign will blanket billboards, transit stations, buses, trains, newspapers and radio throughout the region. The effort will also feature a website where Bay Area residents can link directly to their local water agency’s website, as well as websites devoted to wise water use such as United States Environmental Protection Agency (U.S. EPA) Water Sense and green building websites that cover water savings. These resources will lead users to their local water agencies to request water conservation services and incentives, such as rebates toward the purchase of water-saving appliances. This regional outreach effort is critical as the Bay Area has experienced dry conditions in 2007 and 2008 and is experiencing ongoing water supply concerns related to the Delta and other water sources. The Regional Conservation Project will: ¯Increase regional water conservation awareness ¯Address water conservation needs as a result of regional conditions []Coordinate conservation messages throughout the Bay Area ¯Direct audience to local programs through centralized regional ~onservation campaign []Reduce water consumption Over the course of the campaign, SFPUC will serve as the Campaign Coordinator and manage the day-to- day operations of the campaign. Project Components Task l, Direct Project Administration DPA includes preparation of a Project Assezsment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $5,000 are a local cost of the project sponsor and participating agencies. Task 2. Land Purchase/Easement This project does not require any land or easements. Task 3. Planning/Design/Engineering/Env#’onmental Documentation Collaboratively work with water agency partners to agree on the scope and cost share arrangements for the campaign. SFPUC staff is responsible for coordinating on campaign activities with conservation and public affairs staff at each of the participating agencies and BACWA is the contract entity to receive funding from participating agencies to procure professional services and ad buys. Task 4. Project Implementation implementation includes the following activities: Development of a new regional water conservation scheme for marketing materials Setup and launch of new regional water conservation website with information linking member agencies Outdoor media and transit advertisements throughout the service areas (BART, AC Transit, MUNI, SamTrans) Radio PuNic Service Announcement (PSA) production 2 month flight of radio advertising on 6 local radio stations Page 13 of 83 Exhibit A Newspaper Advertisement including: >San Francisco Chronicle >San Francisco Examiner >San Jose Mercury News >San Mateo County Times >San Mateo Daily News >Contra Costa Times >Tri-Valley Herald >Hayward Review >Napa Valley Register > Agreement Number 4600007654 Other regional papers where appropriate ¯Development of marketing and educational water conservation materials for use by all member agencies >Easy peel stickers/decals for display in civic buildings, parks, restrooms, airports, etc. >Regional water conservation bill insert >Water conservation banners >Regional water conservation brochure >Water conservation tips sheets in multiple languages >Water conservation freebies including sponges and magnets The cost for this implementation work is estimated at $1,047,550, which is funded by $5,000 of staff costs from participating agencies and the balance from this Proposition 50, Chapter 8 grant. Consumer mailings will be sent by participating agencies and are not !qart of the funding agreement. Task 5. Environmental Compliance/Mitigation/,Enhancement This project is an exempt activity under the California Environmental Quality Act and no adverse environmental effects will result. Task 6. Construction Administration No funding is allocated to this activity. Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency No funding is allocated to this activity. Page 14 of 83 Exhibit A Agreement Number 4600007654 Element 3. California WaterStar Initiative Water Efficient Product Testing and Labeling Project Project Sponsor: East Bay Municipal Utility District Project Description The purpose of the California WaferStar Initiative (CWI) is to promote innovation in new products to become more water efficient. CWI Partners will evaluate and develop a statewide voluntary water efficient product rating and labeling program. The project will showcase and reward existing products that have water-saving innovations to stimulate competition amongst manufacturers to develop products that save water and meet laboratory specifications and end-users standards. This project is intended to develop a labeling protocol aimed at improving water use efficiency for commonly-used products including plumbing fixtures, appliances, and irrigation equipment. This program would compliment the WaterSense rating and labeling program established by the U.S. EPA and modeled after the "EnergyStar" program that reduces energy use for various appliances. The benefits would accrue to system wide savings in water supply, distribution, wastewater treatment, improved reliability and reduced environmental impacts statewide. Project Components Task l. Direct Project Administration The project includes DPA, planning, implementation, and evaluation. DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $10,000 are funded by the project sponsor. Task 2. Land Purchase/Easement This project does not require any land or easements. Task 3. Planning/Design/Engineering/EnVironmental Documentation Program start-up, which is covered under another grant agreement, includes: (a) formation of a Project Advisory Committee covering a multitude of stakeholders such as utilities, non-governmental organizations, U.S. EPA, California Energy Commission, State and local governmental agencies, and industry representatives; (b) refinement of pro.gram goals; (c) dev~elopment of administrative processesi (d) product identification and cost effectiveness analyses; and (e) initiation of market research. The start up phase is funded, in part, by other state funds in the amount of $242,000. Task 4. Construction/Implementation Project elements include: Product Testing and Protocols - Develop test procedures and protocols that accurately characterize water use by efficient products under typical (field) and laboratory conditions. Gaining manufacturer consent to use the test procedures and protocols i~ desirable, but will not be a condition of adoption of the test. A third-party water use efficiency authority must control development of test procedures that are accurate and realistically reflect consumer use and behavior. Product Test Method - Coordination with current testing agencies and trade organizations to build on what already exists and provide the WaterStar initiative with a jump start on program implementation. Product candidates will be assembled for testing, including solicitation of samples from manufacturers. Product performance and water savings criteria will be established for each product. This will include contracting with one or more test laboratories with an initial verification and qualification steps for label candidacy. Where applicable, existing test methods will be used, and if necessary new test methods developed. Products and test results will be ranked and reviewed and approved by the Project Advisory Committee. Page 15 of 83 Exhibit A Agreement Number 4600007654 ¯WaterStar Product Certification Directory - Develop a directory of certified product ratings to help track, monitor and assess water-efficient product development and market transformation. Cities, water utilities and other stakeholders would benefit through access to a national registry of recommend products and practices. ¯Publish List of Products arid Labeling - A program logo and associated branding materials representative of the CWI would be a deliverable of the project, subject to available funding and associated project deliverables, and may include names other than WaterStar. Program development, market research and product testing are activities to be completed independent of a program name or logo. Work products include development of a label, web site, and marketing materials. Market research will de conducted for strategic placement of labels and flyers. The Project Advisory Committee will review and approve of the materials prior to production and distribution. The implementation cost is $565,000 of which $525,000 is grant funded and $40,000 is the local cost share. Task 5. Envh’onmental Compliance /~tigation /Enhancement This is an exempt activity under the California Environmental Quality Act. Task 6. Const~’uction Administration No funding is allocated to this activity. Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency No funding is allocated to this activity. Page 16 of 83 Exhibit A Element 4. New Business Guidebook Pilot Program Project Project Sponsor: East Bay Municipal Utility District Agreement Number 4600007654 Project Description This project involves a one-year pilot program to review the plans of new commercial, industrial, and institutional (CII) customers for water use efficiency by EBMUD staff. Developers will be required to meet the requirements of the plan review program as a condition of EBMUD water service. It is estimated that approximately 200 CII plans and sites will be reviewed during the one year pilot study. A report will be issued that will estimate water savings, utility cost, community cost, and implementation issues. Workshops will be offered to other water providers on how to conduct plan reviews for water use efficiency and on program implementation. Project Components Task l. Direct Project Admbdstration The project includes DPA, planning, implementation, and evaluation. DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $2,500 are funded by the project sponsor. Task2. Land Purchase/Easement No funding is allocated to this activity. Task 3. Planning/Design/Engineering/Environmental Documentation The pilot project will rely on a guidebook that was developed separately from this grant agreement. The guidebook includes a list and description of water saving products and processes for the major categories of water intensive businesses. An advisory committee among interested parties oversaw the development of the guidebook that was drafted with contractor assistance. Task 4. Construction!Implementation Project elements include: ¯Adopting water service regulations for program implemen~tation ¯Assigning and training EBMUD staff to conduct plan reviews of new businesses in the pilot area. Currently, EBMUD does not review proposals at the plan check stage and this program would constitute a significant additional review. -Contacting planning agencies for program coordination and implementation &plan reviews ¯Conducting approximately 200 plan reviews and site inspections for a one year pilot program. Equipment specifications will be reviewed when appropriate based on potential water savings. ¯Assessing and evaluating the pilot program for water savings, utility costs, community costs, and implementation and administration issues [] Issuing a report on project findings with recommendations []Conducting training workshops for other water providers on plan review and program implementation The cost for this task is $97,500 of which $75,000 is grant funded and $22,500 is a local cost. Task 5. Environmental Compliance/Mitigation/Enhancement This is an exempt activity under the California Environmental Quality Act. Task 6. Construction Administration No funding is allocated to this activity. Page 17 of 83 Exhibit A Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency No funding is allocated to this acffvity. Agreement Number 4600007654 Page 18 of 83 Exhibit A Agreement Number 4600007654 Element 5. Redwood City Recycled Water Project Distribution Pipeline Bid Package 7 ProjectSponsor: City of Redwood City Project Description The Redwood City Recycled Water Project (Project) will provide up to 900 acre-feet of water per year (AFY) to customers in the Redwood Shores, Greater Bayfront and Seaport areas of Redwood City by 2010. The portion of the Project to be funded by the IRWM grant is for Distribution Pipeline Bid Package 7 (Bid Package 7). Bid Package 7 consists of the design and construction of about 4,500 feet of 24-inch diameter pipeline on East Bayshore Road and 24-inch diameter pipeline on Blomquist and Maple Streets. There is also 1300 feet of 8-inch to 24-inch laterals. Bid Package 7 will convey disinfected tertiary recycled water from the South Bayside System Authority (SBSA) sub-regional wastewater treatment plant to commercial and industrial customers in the Seaport area. Additionally, pipelines constructed as part of Bid Package 7 will provide the backbone for expanding recycled water delivery into central Redwood City and into neighboring cities. The pipeline material will be PVC. Project Components Task 1. Direct Project Administ~"ation DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. Direct Project Costs are $55,000, which is a local cost. Task2. Land Purchase/Easement - No project specific permits or land purchase is required for Bid Package 7. An easement from Caltrans will be required for Bid Package 7. There are no costs associated with Land Purchase and Easements. Task 3. Planning/Design/Engineering/Environmental Documentation At this time the project is at 30% design. Final Design is expected to be completed by December 2007. An IS/MND was prepared to evaluate the impact to the environment caused by construction of the Redwood City Recycled Water Project, Bid Package 7. The IS/MND was adopted by the City in June 2002. An Addendum and responses to comments on the Addendum were prepared in May-June 2003. The City Council approved the project and issued the Notice of D, etermination in August 2003. Total planning, design, and environmental documentation costs are estimated at $288,000, which is a local cost. Task 4. Construction/Implementation/Environmental Mitigation/Enhancement Bid Package 7 includes 4,500 feet of 24-inch diameter recycled water pipeline built in two segments. The first segment will consist of approximately 2,200 If in East Bayshore Road from Whipple Avenue to Bair Island Road, and the second segment will consist of approximately 2,300 If in Blomquist Street from Maple Street to Seaport Boulevard. There will be three branch pipelines totaling approximately 1,300 If of 8-inch to 24-inch pipeline to Granite Rock, the Redwood City Police Facility, and Highway 101 for future service to Central Redwood City. Also included are 14 service laterals ranging in size from 2-inch to 4-inch diameter. The laterals will extend from the new recycled water pipelines to each eligible customer site. The project contract documents will include the following mitigation measures: General construction measures to reduce or eliminated construction-related effects, in particular those related to traffic disruption, vehicle emissions, noise, and dust generation. Emission control measures that follow the Bay Area Air Quality Management District (BAAQMD) California Environmental Quality Act (CEQA) Guidance. Procedures in accordance with the National Historic Preservation Act of 1966 are in place in the event potential Historical, Architectural, Archeological, or Cultural Resources are discovered. Page 19 of 83 Exhibit A Agreement Number 4600007654 ¯ Storm Water Pollution Prevention Best Management Practices to be implemented. [] Traffic control plan for construction activities to be submitted prior to start of construction. [] Specific requirements listed for dust control. Construction costs are $2,880,000. Of this $972,800 is grant funded, $720,000 is from other state funds and $1,187,200 islocal share. These costs include environmental compliance, mitigation and enhancement activities that will be carried out by the contractor. Task 5. Construction Administ~.ation Construction Administration includes construction inspection, engineering services during construction, and other construction administration services. Total construction administration costs are estimated at $288;000. Of this $180,000 is the local share and $108,000 is from other state funds. Task 6. Other Costs No other work items have been identified at this time. Task 7. Contingency Contingency is estimated as $576,000, which is 20% of the construction costs, Task 4. This is a local cost. Page 20 of 83 Exhibit A Agreement Number 4600007654 Element 6. Mountain View / Moffett Recycled Water Pipeline Project Project Sponsor: City of Palo Alto in partnership with the City of Mountain View Project Description The Mountain View / Moffett Area Water Recycling Project (Project) will construct a recycled water conveyance and distribution system to deliver recycled water from the Palo Alto Regional Water Quality Control Plant (RWQCP), located in the city of Palo Alto, to the city of Mountain View North Bayshore area. The Project is composed of a conveyance pipeline ~nd laterals necessary to serve approximately 100 customers within the Mountain View North Bayshore area in the near term. The potential demand for this area ranges from 1,370 to 1,860 acre-feet per year (AFY). This near-term demand represents ten percent (10%) of the potable water needs of the city of Mountain View. The Project will also serve as the backbone for a regional recycled water system in the long term. Longer-term opportunities include service to new customers within the RWQCP service area, in particular in Mountain View and all the way to the City of Los Altos. Treatment, storage and pumping facilities already exist in the RWQCP and are therefore not included in the Project. The pipeline will be installed using open trench methods, except at creek crossings. Project Components Task l. Direct Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $20,000 are funded by the project sponsor as a local cost. Task 2. Land Purchase/Easement This project will be constructed mainly in existing city streets and right-of-ways. Easement is needed in one location in Palo Alto. The City of Palo Alto has obtained a temporary construction easement and a permanent utilities easement at that site. A registered land surveyor in the State of California performed the survey for the easement and prepared the documents. City of Palo Alto acquired the easement at no cost, except for the document preparation fee of $2,t 12, which is a local cost. In exchange, the property owner obtained the right to an existing City easement in the same~property that is no longer needed. Task 3. Planning/Design/Engineering/Environmental Documentation Planning efforts include site investigation, market analysis, project alternatives development, public outreach and workshops. The planning efforts were documented in the Facility Plan Report. The Facility Plan Report was completed in December 2003. RMC Water & Environment completed final design of the project in March 2007, which incorporated recommendations from the value engineering report that was prepared in November 2006. The bid package for the project has been advertised. Bid was awarded to the lowest responsible bidder, McGuire & Hester in June 2007. Environmental Documentation included an Initial Study/Mitigated Negative Declaration (IS-MND). A Mitigation Monitoring and Reporting Plan was completed as part of the IS-MND. The Notice of Determination was filed on February 04, 2004 in Santa Clara County. The planning, design, and environmental documentation costs totaled to $1,776,707, of which $671,739 was paid by other State funding and the balance was local cost. Page 21 of 83 Exhibit A Task 4. Construction/Implementation/Environmental Mitigation/Enhancement Construction activities include the following: ¯Approx. 6,222 feet of 30" pipe and fittings ¯Approx. 12,791 feet of 24" pipe and fittings ¯Approx. 2,763 feet of 18" 15ipe and fittings ¯Approx. 748 feet of 16" pipe and fittings ¯Approx. 4,645 feet of 12" pipe and fittings []Approx. 8000 feet small diameter pipe and fittings ¯Valves and hydrants ¯Customer connections and meters A Mitigation Monitoring and Reporting Plan was prepared and appended to the IS-MND. The following mitigations were identified and will .be implemented during c~nstruction: []A dust abatement program []A spill prevention plan []A qualified biological monitor will be on site during crossing over the creeks ~A registered professional archeologist will be on-call. If any cultural resources are encountered during construction, the archeologist will be notified to record the location of such resources and City will coordinate any findings with the appropriate state, federal and tribal entities. A health and safety plan The bid price for the construction of the project is $15,950,279, with $972,800 to be funded from the grant. $10,478,261 is covered by other State funds and the local share is $4,499,218. These costs inetude environmental compliance, mitigation and enhancement activities. Agreement Number 4600007654 Task 5. Construction Administration RMC Water & Environment and URS CORP will provide construction Administration. This task as described below includes (onstruction management services: ¯Review contractor’s schedule and make recommendations ¯Provide inspection during construction ¯Monitor compliance with all permit conditions ¯Monitor compliance with all mitigation plans and programs, including labor compliance program ¯Monitor compliance with bid documents and perform quality control ¯Review change order requests and provide recommendations ¯Manage and coordinate all project inquiries, serve as focal point []Manage and coordinate all contractor correspondence ¯Maintain detailed project records []Receive, log, and distribute all submittals for review []Review progress payment requests []Inspect completed construction []Recommend final payment and submit all project files for archiving Total construction administration costs are $1,522,873. $500,000 will be provided by other State funds and the balance will be local costs. Task 6. Other Costs There are a number &permits and agency review must be obtained prior to project construction, including a street opening permit and County Health Department design review for Title 22 compliance. The total costs for this are estimated at $350,000, which is a local cost. Page 22 of 83 Exhibit A Agreement Number 4600007654 Task 7. Contingency These costs include costs to handle unknown conditions encountered during construction of the project, provide night-time work as maybe required to minimize impact to traffic, and cover items that maybe different from the drawings. Contingency is estimated at $1,800,000, which is a local cost. Page 23 of 83 Exhibit A Agreement Number 4600007654 Element 7. South Bay Advanced Recycled Water Treatment Project Project Sponsor: Santa Clara Valley Water District in partnership with City of San Jose Project Description The Santa Clara Valley Water District (SCVWD) and its partner, the City of San Jose, shall use the state grant under this agreement and their local ftinding to improve the distribution capacity, flexibility, and reliability of the South Bay Water Recycling (SBWR) system by constructing a 2-million gallon storage reservoir near the existing Transmission Pump Station (TPS). The SBWR program is the Silicon Valley’s regional recycling program, and is the largest urban water reuse project in northern California. The SBWR program currently serves 550 existing customers and numerous new customers by its approximately 100 miles of pipelines throughout northern Santa Clara County. Currently, the summer recycled water use delivered by SBWR exceeds 20 million gallons per day, with hourly peaks in excess of 30 mgd. Increasing the storage for the system will not only increase flexibility and reliability of the system, it will also reduce the peak summer delivery, thus provide equalization for future treatment facilities (advanced treatment) to improve water quality and reduce salinity. The life of service of this storage reservoir is 20 years. According to the preliminary design, this storage reservoir is expected be a cylindrical, carbon steel with epoxy lining and coating. The dimension is expected to be approximately 120 feet in diameter with 27 feet in height. Depending on the final geotechnical report’s recommendation, this reservoir will be sitting on concrete slab and supported by piles when necessary. The reservoir will include all necessary appurtenances including access manhole, access ladder, air release valves, and overflow splash block. Project Components Task i. Direct Project AdminisO~ation " DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $5,000 are fully funded by the project sponsor. Task2. Land Purchase/Easement ~ This project does not require any land or easements. The land required for the project is owned by the San Jose/Santa Clara Pollution Control Plant (WPCP) and will be provided through a separate agreement. Task 3. Planning/Design/Engineering/Environmental Documentation All cost for planning, engineering design, and environmental documentation will be provided by the local project sponsor. The estimated cost is $368,000. Task 4. ConstJ’uctioniImplementation Construction of the advanced recycled water treatment facility primarily consists of the following: ¯2-rag product water storage reservoir. ¯piping, valves, and pumps to integrate the new reservoir to the existing system ¯grading that will elevate the site elevation to be above the 100 year flood level The estimated cost of the construction covered by this grant agreement is $3,280,000. $2,934,600 of this cost will be funded by Proposition 50, Chapter 8 State grant from DWR. The remaining amount will be provided by the local sponsor. Task 5. Environmental Compliance/Mitigation/Enhancement The current environmental investigation indicates that no significant mitigation or enhancement is required for the project. Therefore, no funding is allocated to this activity. Page 24 of 83 Exhibit A Task 6. Construction Administration The estimated construction management cost is $395,000, which is a local cost. Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency The contingency cost for the construction is included in Task 4 - Construction/Implementation. Agreement Number 4600007654 Page 25 of 83 Exhibit A Agreement Number 4600007654 Element 8. Richmond Advanced Recycled Expansion (RARE) Water Project Project Sponsor: East Bay Municipal Utility District Project Description The East Bay Municipal Utility Dfstrict (EBMUD) is requesting funding for the purchase of microfiltration (MF) equipment. This equipment will support the new Richmond Advanced Recycled Expansion (RARE) Water Project. The RARE Water Project will provide 3.5 million gallons per day (mgd) of high-purity recycled water to replace potable water currently used by the Chevron Richmond Refinery (Chevron) for its boilers, thereby conserving EBMUD’s limited drinking water supply and reducing the threat of severe rationing to 1.3 million customers during droughts. Other components of the RARE Water Project, which are not covered in this funding application, include construction of a new booster pump station and advanced water treatment plant (WTP) located on Chevron property. Secondary effluent from the West County Wastewater District (WCWD) will be conveyed to the new WTP where it will be further treated using microfiltration (MF) and reverse osmosis (RO) to produce the stringent water quality required for Chevron’s boilers. As part of this funding application, EBMUD is only requesting funding for the purchase of the MF treatment equipment, which is the funded project. Project Components Task 1. D#"ect Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $10,000 are fully funded by the project sponsor. Task2. Land Purchase/Easement Land for the overall RARE Water Program has ~lready been secured and no new land will need to be acquired. Under the terms of a ground lease agreement executed by EBMUD and Chevron in May 2008, Chevron will provide land and utilities at no cost to EBMUD for the RARE Water Project. Task 3. Planning/Design/Engineering/Environmental Documentation EBMUD completed a feasibility study, preliminary design, and certification of an EIR for RARE. The funded project, microfiltration equipment, was included in this overall effort. As part of the preliminary design, EBMUD pre-selected the vendor to provide MF equipment for which funding is requested. Final design for the overall RARE treatment plant and pump station were finished in April 2008. The cost of environmental documentation and design associated with the microfiltration equipment is $598,737, which is a local cost. Task 4. Construction/Implementation Task 4 includes three main phases: bid period, construction, and start-up. Bid period activities refer to the advertising of the project, contract award, and isstiance of notice to proceed. Construction includes installation of the microfiltration equipment as well as all work required to construct the WTP and booster pump station. The cost for manufacturing and delivery of the MF equipment is $2,829,338 of which $2,127,600 is grant funded and $701,738 is the local cost share. The local cost share also includes bid period costs. Start-up includes functional and performance testing of all facility components for all modes of operation, training for operations and maintenance staff, and project closeout. Task 5. Environmental Compliance/Mitigation/Enhancement No mitigation measures were identified in the EIR for the installation of MF equipment and no funding is allocated to this activity. Page 26 of 83 Exhibit A Agreement Number 4600007654 Task 6. Construction Administration This task includes construction management throughout the construction and start-up phases. EBMUD may hire one or more consultants to assist with construction management services. The construction management cost associated with installation of the microfiltration equipment is $467,603. Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency No funding is allocated to this activity. Page 27 of 83 Exhibit A Element 9. Pacifica Recycled Water Project Project Sponsor: North Coast County Water District Agreement Number 4600007654 Project Description The Pacifica Recycled Water Project (the Project) will deliver 38 million gallons per year (MGY) of recycled water to six major irrigation customers including the San Francisco Recreation and Park Department’s Sharp Park Golf Course, the City of Pacifica parks, CalTrans roadway medians, and a local middle school and high school. The Project is designed to comply with recycled water uses contemplated in the City of Pacifica, Calera Creek Water Recycling Plant, Wastewater Facilities Plan EIR (1994). The recycled water uses included landscape irrigation for schools, parks and roadway medians. The Project was also developed to meet two key goals of North Coast County Water District (NCCWD), its partners, SFPUC and City of Pacifica, and its stakeholders: Provide Desired Supply Reliability through the configuration and operation of the SFPUC regional system to optimize the use of Sierra and local water resources to satisfy the expressed needs of customers. " Provide High Quality Water through the preservation of the highest quality water for potable uses and other appropriate customers demands. ¯Reduce Dependence on Hetch-Hetchy System by replacing water supply currently provided by the SFPUC Hetch-Hetchy system. The total potable water demand in the overall Project service area will be reduced by 38 MGY. This represents a significant fraction of the irrigation use in the service area. Annual irrigation demand in Pacifica is estimated to be about 63 MGY. More than 60% of that demand can be met through this project. Project Components Task l. Direct Project Administration " DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and pos~ performance reports. DPA costs of $10,000 are fully funded by the project sponsor. Task 2. Land Purchase/Easement None Required. Task 3. Planning/Design/Engineering/Environmental Documentation Planning/Design: Develop Facilities Planning Report to evaluate various project alternatives and make a final project recommendation. Hire a design consultant to produce the final plans. ¯Environmental Documentation: This element covers CEQA and a Supplemental IS/MND to evaluate alternative tank site locations. ¯The cost for this task is $975,757. Of this amount $166,000 will be funded by other state funds and the balance will be funded by NCCWD and the SFPUC. No Proposition 50, Ch. 8 funds will be used for this task. Task 4. Construction/Implementation " Bid, Award, Construction NTP: Advertise and open bids. ¯Construction of Pacifica Recycled Water Project: construct base recycled water project, including a pump station, storage tank, and transmission and distribution pipelines. > Pump Station Construction: Construct Recycled Water Pump Station at Calera Creek Water Recycling Plant facilities, adjacent to the filter building. The pump station will include two 700 gallon per minute (GPM), 100 horsepower pumps. One pump will be an operational pump, and the other will serve as a back up. The pump station will also include Page 28 of 83 Exhibit A Agreement Number 4600007654 facilities to feed a disinfectant, sodium hypochlorite solution, into the recycled water, including two metering pumps and two 120 gallon storage tanks. > Storage Tank Construction: Construction of 400,000-gallon storage tank. The storage tank is sized to meet peak irrigation needs. > Pipeline ConstructiOn: Construction of a transmission line from the recycling plant to the storage tank, as welt as distribution piping. The pipeline construction will consist of: (1) 2,750 LF of 6-inch diameter pipeline; (2)15,300 LF of 12-inch diameter pipeline. The pipeline material will likely be PVC. Retrofit Construction and Testing: Retrofits will be designed to meet Title 22 requirements and will be reviewed by DHS. These will include backflow prevention and cross-connection control, and will be tested in accordance with DHS requirements prior to being put into operation. The cost for this task is $7,537,400 of which $744,400 will be funded by this grant, $817,652 will be covered by Other State Funds and $5,975,348 will be local costs funded by NCCWD and SFPUC. Task 5. Environmental Compliance/Mitigation/Enhancement Hire consultant to complete environmental/regulatory permitting needs. [] Mitigation: Construction related mitigation measures and biological monitoring to determine if project operation and/or construction impacts habitat in irrigation pond, Sanchez Creek, Horse Stable Pond and Luguna Salada. The cost for this element is $124,702. All costs will be funded by NCCWD and SFPUC. No Proposition 50 Ch. 8 funds will be used for this task. - Task 6. Construction Administration and Management The cost for this element is $1,358,000. All costs will be funded by other state funds ($370,348), and by NCCWD and SFPUC ($987,652). No Prop6sition 50, Ch. 8 funds will be used for this task. Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency ~ Construction Contingency costs are included in the Construction Costs. Page 29 of 83 Exhibit A Element 10. North Marin Recycled Water Project Project Sponsor: North Marin Water District Agreement Number 4600007654 Project Description The Recycled Water Program for North Marin Water District (NMWD) and Novato Sanitary District (NSD) proposes to construct a 0.5 MGD recycled water facility (RWF) for landscape irrigation at the Stone Tree golf course in Novato. The project will also deliver water to the NSD and Novato Fire Protection District (NFPD). The facility will treat secondary effluent to meet Title 22 requirements for unrestricted bodily contact. This project is a first step to introduce and expand the use of recycled water within the Novato Service Area. As the market for recycled water grows, the facility will be expanded to meet future demands. The Project was designed to develop recycled water to offset potable water demands for landscape irrigation uses, reduce dependence on imported water supplies from the Russian River and help reduce wastewater discharges to the San Francisco Bay. Project construction includes: ¯0.5 MGD RWF with an Influent Pump Station, Chemical Feed Systems for Coagulation and Disinfection, Filtration, Chlorine Disinfection, Effluent Pump Station and a recycled water transmission force main ¯Site Retrofit, installation of booster pumps and storage improvements at the Fire Station #2 to provide recycled water ¯Provision of a back up potable water main to the RWF Project Components Task l. Direct Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. Total project cost of this task is $120,757, which is funded by $5,378 in other state funds and th( balance is a local cost. Task2. Land Purchase/Easement Land acquisition is not required for the project. An Encroachment Permit was obtained from the County of Marin on October 25, 2005 for installation of transmission force main along Atherton Avenue. The rest of the project construction would be within the Novato Sanitary District (NSD) property. The NMWD has uninterrupted right for all activities related to the recycled water pipeline on NSD property through the Inter Agency Agreement between NMWD and NSD of December, 2004. Task 3. Planning/Design/Engineering/Environmental Documentation 100% Design and Bid Solicitation has been completed for the Recycled Water Facility and Pipeline on Atherton Avenue. The construction/implementation of this project commenced in May 2006. CEQA was completed in 2003. The Notice of Determination was filed August 22, 2003 at the County of Marin. The site retrofit and storage improvement design for Fire Station No. 2 is scheduled for December 2007. Total cost of this task is $500,325 and the grant share is $31,054. The balance consists of $51,412 in Other State Funds and $417,859 in local costs. Task 4. Construction/Implementation Construction of RWF included construction of Influent Pump Station, Chemical storage and feed facilities, Filter units, Recycled water Pump Station and Process Control System. Other elements of the project include construction of Recycled water Delivery Pipeline, Control System Radio Links, Level Measurement Instrumentation at Golf Course and Electrical Power System Additions. Further, Site retrofit and addition of a storage and pump system at the Novato Fire Protection District (Station No. 2) to provide recycled water for irrigation and provision of a back up potable water main to the RWF are part of the project. Page 30 of 83 Exhibit A Agreement Number 4600007654 Total task cost is $3,903,800. The grant share is $195,190. The balance consists of $599,708 in Other State Funds and $3,108,902 in local costs. Task 5. Environmental Compliance / Mitigation / Enhancement No mitigation measures are required. The recycled water facility treats secondary effluent to meet Title 22 requirements for unrestricted bodily contact. An Engineering Report was prepared in accordance with California Code of Regulations (CCR) Title 22 for permitting purposes. Approved on February 5, 2004. Task 6. Construction AdminisO"ation Construction administration includes: ¯Obtaining services of an outside firm for construction management ¯Engineering services during construction ¯District staff costs on construction administration and start up costs. Total task cost is $120,000. The grant share is $6,000. The balance consists of $54,261 in Other State Funds and $59,739 in local costs. Task 7. Other Costs Includes re-bid costs, material testing costs, and project closeout costs. Total task cost is $65,000 and the grant share is-$3,250. The balance is local share. Task 8. Contingency Total estimated contingency is $333,008. Contingency applied to the grant is $9,056. The balance is local share. Page 31 of 83 Exhibit A Element 11. Mocho Groundwater Demineralization Plant Project Project Sponsor: Zone 7 Water Agency Agreement Number 4600007654 Proj ect Description The Salt Management Plan (SMP) and the Water Quality Master Plan (WQMP) for the Livermore- Amador Valley identified the need to construct and operate groundwater demineralization facilities to improve the groundwater basin’s salt balance and to improve delivered water quality on the west side of Zone 7’s treated water delivery system. The construction and operation of the Mocho Groundwater Demineralization Plant is one the major component for implementation of the SMP and WQMP. The plant, lodated on the northwest corner of Santa Rita Road and Stoneridge Drive in Pleasanton, is a 7.7 MGD groundwater demineralization plant. The plant will use reverse osmosis (RO) membrane technology to treat groundwater pumped from Zone 7’s existing Mocho wells, produce about 6.2 MGD treated permeate of less than 5 mg/1 hardness, blend the permeate with additional groundwater or a stream of distribution system water, and pump the resulting blended supply to the Zone 7 potable water system. The RO concentrate will be discharged to the Bay by the LAVWMA pipeline via the Dublin San Ramon Services District’s waste water export pipeline. The Project will remove 3,000 to 4,000 tons of salt annually from the Livermore-Amador Valley Main Groundwater Basin and lower the hardness of Zone 7’s groundwater deliveries. Project Components Task 1. Direct Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $50,000 are fully funded by the project sponsor. Task2. Land Purchase/Easement All land and easements needed in order to enable the construction of the project have been acquired. Easements were acquired for a total of about $10,000. Task 3. Planning/Design/Engineering/Environmental Documentqtion Planning documents, the 100% design, and the bid documents were prepared by Carollo Engineers for this project in February 2007. The project was advertised in March 2007 for construction contract bids. Bids were opened on April 30, 2007. The construction contract was awarded to GSE Construction on May 16, 2007. An Initial Study/Mitigated Negative Declaration (IS/MND) for the Mocho GW Demineralization Plant Project was prepared by Environmental Science Associates, Inc. (ESA) and circulated for public comment from February 27, 2006 through March 29, 2006. The IS/MND was adopted by the Zone 7 Board at the August 16, 2006 meeting. All necessary permits for construction were issued by March 2007. Total Task 3 costs are estimated at $2,332,538, which is a local cost. Task 4. Construction/Implementation The Project construction will include the following: Construction of a new building with cartridge filters, RO membrane feed pumps, RO membrane skids, decarbonation towers, chlorine contact basin, high service pumps, concentrate disposal pumps, chemical feed systems (including aqueous ammonia, sodium hypochlorite, caustic soda, and scale inhibitor systems), membrane clean-in-place (CIP) system, electrical room, storage room, control room, water quality station; and restroom. The new demineralization plant will be located on the existing Mocho Well No. 4 site. Page 32 of 83 Exhibit A Agreement Number 4600007654 Modifications to Mocho Well No. 4 facilities, including well discharge piping, appurtenances, instrumentation and control modifications, yard piping, valve and meter vaults, and miscellaneous site improvements (including curbing~ paving, landscaping,-and fencing). ¯Modifications to Mocho W_ells l-3, including, well discharge piping, appurtenances, instrumentation and control modifications, yard piping, and valve and meter vaults. ¯Installation of groundwater transmission pipeline from Mocho Wells No. 1, No. 2, No. 3, and No.’ 4 to the demineralization plant. ~ The construction of the Mocho Groundwater Demineralization Plant includes construction of the plant building and equipment, raw water pipelines for transmission of groundwater from four existing wells to the plant, and modifications to the four existing wells, The project construction is scheduled to be completed by June 2009. Total Task 4 costs are estimated at $23,989,680 with $740,000 funded by the grant and the balance by local funds. Task 5. Environmental Compliance/Mitigation/Enhancement Zone7 has incorporated certain mitigation measures into the project description as environmental commitments. These commitments include the preparation and implementation of the measures listed below: General construction measures to reduce or eliminated construction-related effects, in particular those related to traffic disruption and dust generation; Erosion and sediment (E&S) control plan to control short-term and long-term E&S effects and to restore soils and vegetation in areas affected by construction activities; Stormwater Pollution Prevention Plan in compliance with the National Pollution Discharge Elimination System; ¯Traffic control plan for construction- activities; ¯Dust suppression plan to reduce fugitive emissions during construction ¯Fire control plan; ¯Hazardous materials management plan, including appropriate practices to reduce the likelihood of spills of such materials during construction; Total Task 5 costs are estimated at $219,212, which is a local cos~t. Task 6. Construction Administration Construction Administration includes Construction Management services and Engineering Support services during construction. Following are the major items to be completed before or during construction/implementation. ¯Construction Management ¯Review contractor’s schedule and make recommendations¯Manage and coordinate all contractor correspondence¯Maintain detailed project records ¯Receive, log, and distribute all submittals for review []Response to RFIs and issue design changes []Inspect completed construction []Recommend progress payments and submit all project files for archiving Total Task 6 costs are estimated at $4,115,021, which is a local cost. Task 7. Other Costs There are no other items to include under Task 7. Permits were included under Task 3 above. Page 33 of 83 Exhibit A Task 8. Contingency The contingency is based on 10% of the total construction winning bid. Total estimated contingency costs are $2,398,968, which is a local cost. Agreement Number 4600007654 Page 34 of 83 Exhibit A Agreement Number 4600007654 Elelnent 12. Direct-Installation Commercial High-Efficiency Toilet Program Project Sponsor: Marin Municipal Water District Project Description This water conservation project irfiplements a direct-install high-efficiency toilet replacement program that advances element 6 (High Efficiency Toilet Replacement Program) of the Bay Area Regional Water Conservation Program listed in the San Francisco Bay Area IRWMP, and could serve as a model for a regional or sub-regional program to follow. The goal of the Direct-Installation Commercial High- Efficiency Toilet Program is to replace 1720 high-volume toilets (toilets using 3.5 gallons or more per flush) with High-Efficiency Toilets (HETs) in commercial and multi-family sites (i.e. three living units or greater) by purchasing and installing the new fixtures, and removing and recycling the old plumbing fixtures. Project implementation will result in a long-term reduction in water demand of 51 acre feet per year, or a total of 1,017 acre feet over the life of the devices. Cost of this water savings is $519 per acre foot. This reduction in demand in Marin Municipal Water District’s (MMWD) service area will impact the region through the potential for decreased demand for Russian River water imports from Sonoma County. Project Components Task1. Dh’ect Project Administ~’ation DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $5,000 are fully funded by the project sponsor. Task2. Land Purchase/Easement No land acquisition is required for this project. No funding is allocated to this activity. Task 3. Planning/Design/Engineering/Environmental Documentation $500 is allocated to planning activities for the implementation work, which is a local cost. Task 4. hnplementation ~ Project implementation includes the following activities: ¯Request proposals from qualified plumbing contractors. ¯Execute contract with plumbing contractor for purchase/installation of HETs in commercial and multi-family sites (sites of three living units or greater) and removal and recycling of the old plumbing fixtures. , Replace 1720 high-volume toilets (toilets using 3.5 gallons or more per flush) with HETs. The cost of project implementation is $520,010 of which $366,800 is grant funded and $153,210 is local match. Task 5. Environmental Compliance / Mitigation / Enhancement No funding is allocated to this activity. Task 6. ConstT’uction Administration No funding is allocated to this activity. Task 7. Other Costs No funding is allocated to this activity. Task 8. Contingency No funding is allocated to this activity. Page 35 of 83 Exhibit A Element 13. Groundwater Exploration Project Project Sponsor: Montara Water and Sanitary District Agreement Number 4600007654 Project Description The project consists of drilling upto 2 test wells in the vicinity of the Montara Water and Sanitary District (MWSD) service area for the purposes of characterizing the various aquifers in terms of their optimal use for potable water supply. This data would extend the regional groundwater assessment work already conducted by San Mateo County. The San Mateo County Midcoast Aquifers: Literature and Data Review (Balance Hydrologics, April 2002) and the San Mateo County Midcoast Groundwater Study: Phase II (Kleinfelder, February 2004) provide guidance as to where the most productive strata are located. Data from the test well program will allow evaluation of the local aquifers in terms of their suitability for public and private potable water supply. A matrix of potential beneficial uses &the groundwater and desired characteristics for that use will be constructed. Uses such as standby firefighting supply, private residential supply, and public water system conjunctive use supply will be considered. Then the local aquifers will be ranked as to how close they meet the desired characteristics for a given beneficial use. The last step in the data analysis wilt be to optimize the existing and projected groundwater levels for potable supply according to the results of the matrix analysis. Data collection of well water quality will be conducted consistent with Groundwater Ambient Monitoring and Assessment (GAMA) Program protocols. There is no current GAMA monitoring in the Midcoast Region and data from the test wells wouldhelp establish a baseline for the area. The total cost of this project is $48,000; of which $37,100 will be funded by the grant and $10,900 will be provided as local share. Project Components " Task l. Direct Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs are fully funded by the project sponsor and are not included in the funding agreement. Montara WSD will develop a Project Assessment and Evaluation Plan (PAEP) to ensure the 0n-going and long-term success of the Project. The PAEP will identify the specific Project goals and develop measurements for each of these goals. To insure maximum utility of the ground water quality data colledted, a Management Plan/Quality Assurance Management Plan (MP/QAPP) will be designed according to the State’s 2000 QAPP document. If available, the State’s SWAMP Advisor software will be used to prepare the MP/QAPP. The estimated total cost of this task is $1,900, which will be provided as local share. Task 2. Land Purchase/Easement None required for this project. Task 3. Planning/Design/Engineering/Environmental Documentation The project has been advertised for public bids, bids received, and contract awarded to Maggiora Bros. Drilling, Inc. of Watsonville, California, in the fall of 2005. The contractor is ready to mobilize once all permits have been acquired and funding secured by the District. Page 36 of 83 Exhibit A Status of Permits Agreement Number 4600007654 "Coastal Development Permit (CDP): a CDP application has been filed with the County of San Mateo in October 2005. The application is under review by the County. The process usually takes up to 18 months to c_omplete and receive the CDP. Drilling P~rmit: an application has been prepared and will be submitted immediately following the CDP approval. This permit takes 10 to 30 days to obtain from the County of San Mateo. Status of CEQA/NEPA Compliance CEQA compliance process has been completed by the District in 2005. NEPA compliance is not required. Coastal Act compliance is accomplished through the Coastal Development Permit (See above). The estimated total cost of this task is $9,000, which will be provided as local share. Task 4. ConsO"uction/Implementation/Environmental Mitigation/Enhancement Deep bedrock wells (400 to 600 foot deep wells) wilt be drilled using an air/mud rotary and/or an air- hammer well drilling rig. Characteristics ofborehole cuttings and specific conductance and temperature of the ground water will be logged during drilling. Borehole geophysics will be conducted. Findings will be used to assess final depth and position of perforations of each well. The wells will likely be cased with 6-inch diameter SDR21 PVC well casing. Screened sections will be 0.032-inch slotted SDR21 PVC well casing. The well annulus will be packed with 8/16 sieve-size sahd with a 50-foot cement surface seal. Borehole drilling findings may modify these specifications. Following well completion the wells will be developed by air-lifting ground water from the well for about one hour. The water will be monitored for specific conductance and temperature. A water quality sample will be collected and analyzed for general minerals. The wells will be tested for yield by pumping the wells for 72 hours while monitoring drawdown in the pumped well and any near-by residential wells (none are know of at this time). The drawdown data will be analyzed using Cooper and Jacob time-drawdown methods and other analytical methods to assess the well and dquifer properties. The water pumped from the well will, be monitored for specific conductance and temperature. A water quality sample will be collected towards the end of the 72-hour pumping test and analyzed for general minerals. Finings will be analyzed as a means of characterizing (’finger- printing’) the source. The estimated total cost of this task, including any necessary mitigation activitie’s or construction administration, is $ 37,100, which will be funded by the grant. Task 5. Other Costs No funding is allocated to this activity. Task 6. Contingency No funding is allocated to this activity. Page 37 of 83 Exhibit A Element 14. Alameda Creek Phase 2 Fish Passage Project Project Sponsor: Alameda County Water District Agreement Number 4600007654 Project Description The proposed Alameda Creek Phase 2 Fish Passage Project ("Project") will address fish passage/protection at a currently unscreened dive~rsion at Alameda County Water District’s (ACWD) Bunting recharge pond. The Project will allow ACWD to maintain the existing local groundwater recharge operations at this facility while also providing for steelhead fish passage/protection in the Alameda Creek Flood Control Channel at this diversion. Specifically, as part of this project, a 20 cfs fish screen will be installed at ACWD’s Bunting Pond diversion in the Alameda Creek Flood Control Channel. The fish screen will be cylindrical with a brush cleaner. The screen will also be placed on tracks such that it will be retrievable. This will allow ACWDto remove the fish screen from the channel during high flow events to prevent damage to the screen, and to provide for periodic servicing of the screen. The fish screen will meet all NOAA Fisheries and DFG requirements to protect juvenile steelhead and fry from entrainment at this facility. The proposed work includes CEQA documentation, permits from various jurisdictional agencies, design and construction. Construction work includes minor excavation at the existing diversion site, minor concrete work, placement of grouted rip rap, electrical work and installation of the fish screen assembly and track and other minor improvements. Project Components Task l. Direct Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $14,000 are fully funded by the project sponsor. Task 2. Land Purchase/Easement All project components proposed for funding will be constructed on public properties and under existing easements, thus land acquisition or purchase will not be required. Task 3. Planning/Design/Engineering/Environmental Documentqtion Planning/Design/Engineering/Environmental Documentation includes three work items: Planning, Project Design Engineering and Construction Bid Solicitation, and Environmental Documentation. The project is currently in the planning phase, The anticipated tasks for planning and design include: ¯Prepare 10% Preliminary Design ¯Prepare 60%Design ¯Prepare Final Design ¯ .Complete design distribution and bid solicitation ¯Prepare award package for Board approval []Prepare contract documents, conduct pre-construction conference, review submittals, and execute contract ¯Distribute newsletter informing residents of upcoming construction The project requires compliance with CEQA as part of the environmental review process. The CEQA requirements may be fulfilled with a Mitigated Negative Declaration. Total estimated costs for Task 3 are $154,000 with $60,000 to be funded from the grant. Page 38 of 83 Agreement Number 4600007654Exhibit A Task 4. Construction/Implementation The Construction/Implementation task involves construction of the bid package and includes the following: ¯Mobilization ¯Construct temporary access road ¯Extend concrete intake ¯Replace trashrack with steelplate ¯Construct concrete sideslopes for fish screen track ¯Install new grouted riprap ¯Electrical work ¯Modify existing fence ¯Install supports for cleaning platforms ¯.Furnish and install 20 cfs cylindrical fish screens Total estimated costs for Task 3 are $570,000 with $500,000 to be funded from the grant. The Bunting Diversion is on the side slope of the Alameda Creek Flood Control Channel levee. All the work for the installation &the fish screen will be completed from the levee and no work in the creek is anticipated. In addition, the fish screen project will be constructed during the summertime when floWS in the channel at this area will be low and there should be no need to divert the flow. Task 5. Environmental Compliance/Mitigation/Enhancement Mitigations as part of the contract requirements will be determined during the environmental process. A Mitigation and Monitoring Plan will also be prepared as part of the CEQA documentation. The total estimated cost for Task 5 is $35,000 which is a local cost. Task 6. Construction Administration Construction Administration includes the management of the following items: Construction Inspection [] Engineering services during construction [] Other construction administration services The total estimated cost for Task 6 is $t 15,925 with $40,000 to b,e funded from the grant. Task 7. Other Costs As part of this task, ACWD will secure all necessary permits for this project. Permits to be secured include Clean Water Section 404 Permit (Corps), Streambed Alteration Agreement (DFG), encroachment permits (Alameda County Flood Control), and Clean Water Act Section 401 certification (RWQCB), and permit for levee modification (Division of Safety of Dams). Total estimated cost for Task 7 is $26,000 which is a local cost. Task 8. Contingency ~ These costs include costs to handle unknown conditions encountered during construction of the project. The construction contingency is estimated at $57,000 which is based on 10% of the construction costs. Page 39 of 83 Exhibit A Element 15. Napa Sonoma Marsh Restoration / Recycled Water Project Project Sponsor: Sonoma Valley County Sanitation District Agreement Number 4600007654 Project Description In 1994, the Stateof California ac~tuired all of the salt and bittern ponds in the North Bay and created the DFG Napa-Sonoma Marsh Wildlife Area, The bittern ponds, located in the northern portion of the DFG Napa-Sonoma Marsh Wildlife Area near Fly Bay and Coon Island, total 750 acres, and store an estimated 2.5 billion gallons of bittern. Restoring these ponds through levee breaching or other more common techniques is not feasible because of RWQCB restrictions on discharging bittern into the Bay. However, the RWQCB will consider discharge from these ponds if the compounds in the bittern are diluted to near background levels. To sufficiently dilute the quantity of bittern stored in the three ponds will require enormous amounts of fresh water. The Son0ma Valley County Sanitation District (SVCSD) would construct the necessary pipelines and pump stations from the SVCSD wastewater treatment plant to provide recycled water to these bittern ponds for the dilution process. The project would provide approximately 3,000 acre-feet (AF) of tertiary-treated recycled water per year to the bittern ponds. Desalination of the bittern ponds is anticipated to take between 10 and 15 years. Following the desalination of the bittern ponds, the recycled water will be used for agricultural irrigation adjacent to the pipeline alignment. Project Components Task 1. Direct Project Administration - DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. Total costs for Task 1 are estimated at $260,000, which is a local cost. Task 2. Land Purchase/Easement The right-of-way requirements are based on the following assumptions: Excepting the fee property owned by the SVCSD, additional easement rights will be required from all property owners along the Sonoma pipeline route. Right-of-way needed for construction of the project is a 20-foot wide permanent easement and a 30-foot wide temporary construction easement. The property that would be acquired for the SVCSD portion (the Sonoma Pipeline), lying in both Napa and Sonoma Counties, consists primarily of agricultural land zoned Land Extensive Agriculture. The majority of this land lies within the 100-year flood zone. There are two primary soil types that occur within the project area. Haire Loam dominates most of the project. This soil supports dry land pasture and can support a varietal vineyard. The second major soil type is Reyes silty clay. This soil type primarily supports oat hay pasture and has not supported vineyard development. This soil type is also associated with wetland environments. A survey of land sales (2002) in both Napa and Sonoma Counties show that land that has vineyard potential is still selling for a premium price. Land that is not suitable for vineyard development has sold for substantially less money. The recent sales support a $50,000/acre or $1.15/square foot (sf) cost for land that has vineyard potential. The recent sales also support a $15,000/acre or $0.34/sf cost for land that is wetland or suitable only for dry land farming. Permanent easements for the pipeline were valued at 22% of fee value. Temporary Construction Easements were valued at 11% of fee value. Page 40 of 83 Exhibit A Agreement Number 4600007654 The detailed breakdown for the right-of-way costs is as follows: Permanent Easement on Land with vineyard potential - 19,500 linear feet x 20-foot wide easement x $1.15/sf x 0.22 = $98,600 Temporary Construction Easement (TCE) on Land with vineyard potential - 19,500 linear feet x 30-foot wide TCE x $1.15isfx 0.11 = $74,000 Permanent Easement on Land with wetland or dry land only farming - 8,000 linear feet x 20-foot wide easement x $0.34/sf x 0.22 = $11,968 TCE on land with wetland or dry land only farming - 8,000 linear feet x 30-foot wide TCE x $0.34/sfx 0.11 = $8,976 Permanent Easement on Land with commercial/industrial potential - 1200 linear feet x 20-foot wide easement x $1.38/sfx 0.22 = $7,286 TCE on Land with commercial/industrial potential - 1200 linear feet x 30-foot wide TCE x $1.38/sfx 0.11 = $5,464 Total Cost = $206,000, which is a local cost. Task 3. Planning/Design Engineering/Environmental Documentation Baywide restoration planning, including historical and existing conditions and future habitat recommendations, was conducted as part of the Baylands Ecosystem Habitat Goals Project of the Corps. The Corps, the DFG, and the California Coastal Conservancy completed the Napa River Salt Marsh Restoration Project Feasibility Study in June 2004. Sonoma County Water Agency (SCWA) and SVCSD partially funded and helped manage the preparation of the Feasibility Study. The Corps, the DFG, and the California Coastal Conservancy completed an EIR in April 2004 and issued a Final EIS in June 2004. SCWA and SVCSD partially funded and helped manage the preparation &the EIR and EIS. SCWA and SVCSD have been pursuing funding Opportunities for the Project. Funding sources will include Corps funding, District funding, and DWR funding. SCWA and SVCSD have funded approximately $2,591,801 for Project planning, some preliminary engineering design, and environmental documentation through December 2007. An additional $1,244,490 will be needed to complete design engineering for the Project. The Napa River Salt Marsh Restoration Project will begin design of approximately one mile of the eight miles of pipeline in June 2008, when a funding contract with DWR is expected to be finalized. The balance of the design will begin in October 2009 when a funding contract with the Corps is expected to be finalized. Final design will include final plans and specifications and an engineer’s cost estimate. Construction bids will be solicited to construct this project through established contracting procedures and in accordance with State and federal requirements, namely the requirements established under the Proposition 50 Guidelines and California Public Contract Code. The California Coastal Conservancy certified a CEQAiNEPA document (EIR/EIS) for this project in June of 2004. The Sonoma County Water Agency’s Board of Directors adopted a Notice of Determination on June 13, 2006. Additional environmentally related permits from various agencies identified in the EIR/EIS will be obtained prior to construction. These include Corps Section 404, DFG Section 1602, and Regional Board 401 Certification. Total planning, design, and environmental documentation costs are estimated at $3,836,291 with $366,800 to be funded from the grant and the balance is local costs. Page 41 of 83 Exhibit A . Agreement Number 4600007654 Task 4. Construction/Implementation This task involves construction of the following elements: ¯A pump station at the SVCSD wastewater treatment plant. ¯A recycled water pipeline and associated appurtenances between the wastewater treatment plant and existirrg storage reservNrs R-1 and R-2. ¯A pump station at existing storage reservoirs R-1 and R-2. []A recycled water pipeline and associated appurtenances between existing storage reservoirs R-] and R-2 and the Napa River Salt Marsh. Total Task 4 costs are estimated at $13,028,000 which is a local cost. Task 5. Environmental Compliance/Mitigation/Enhancement The California Coastal Conservancy certified a CEQA/NEPA document (EIR/EIS) for this project in June of 2004. The Sonoma County Water Agency’s Board of Directors adopted a Notice of Determination on June t3, 2006. Mitigation measures include providing funding to wetland mitigation bank of approximately 1 acre of wetlands disruption along the length of the pipeline. Other mitigation measures are standard requirements for SCWA projects including preparation of stormwater pollution prevention plans, wildlife surveys prior to and during construction, et al. As stated previously, the project would provide approximately 3,000 acre-feet of tertiary-treated recyeled water per year to the Napa Salt Marsh bittern ponds. Desalination of the bittern ponds is anticipated to take between 10 and 15 years. Following the desalination of the bittern ponds, the recycled water will be used for agricultural irrigation adjacent to the pipeline alignment. Total Task 5 mitigation Costs are estimated at $200,000, which is a local cost. Task 6. Construction Administration Construction Administration includes construction inspection, engineering services during construction, and other construction administration services. Total Task 6 construction administration costs are estimated at $1~ 137,755, which is a local cost. Task 7. Other Costs Other costs for the Project include costs for legal work, accounting, licenses, permits, monitoring during constructions, monitoring plans, quality assurance plans Total Task 7 costs are estimated at $78,168, which is a local cost. Task 8. Contingency The contingency was based on 10% of the total Project cost, and is estimated at $1,713,424, which is a local cost. Page 42 of 83 Exhibit A Element 16. Overall Grant Administration Project Sponsor: Bay Area Clean Water Agencies Agreement Number 4600007654 Project Description Grant administration includes setting up legal and business arrangements among the participants involved with the implementation grant and carrying out the overall reporting and reimbursement process during the grant term. Administration for individual projects is addressed under each project. Project Components Task l. Direct Project Administration DPA includes establishing legal and business arrangements among participants, preparation of quarterly reports summarizing progress for all of the grant funded projects, preparation of reimbursement requests (invoices) on behalf of all participants, disbursement of reimbursement to grant recipients, regular coordination among grant recipients, review of progress for projects scheduled to receive grant disbursement, accounting, and preparation of a grant completion report. DPA costs in the amount of $260,000 are funded by $10,000 from participating agencies to coordinate and the balance by grant funds to support BACWA and its contractors throughout the grant term for accounting, legal work, administration, oversight and coordination. Task 2. Land Purchase/Easement- not applicable Task 3. Planning/Design/Engineering/Environmental Documentation- not applicable Task 4. Construction/Implementation - not applicable Task 5. Environmental Compliance /Mitigation /Enhancement - not applicable Task 6. Construction Administration - not applicable Task 7. Other Costs - not applicable Task 8. Contingency - none Page 43 of 83 li ii l i |!!1 [] I z Exhibit A Agreement Number 4600007654 Exhibit C - Budget Table 2 Element 1: CCWD-EBMUD Regiana] Jnte-rtie -VFDs (Contra Costa Water Dis#ict) Es~meted Non- Task 1 Direc~ Project Administ~atFon 2 Land PurchasetE_asenrent 3 Plan~ng~es~’~inee r~£#Envir onmenta~ Do~ment~tion 4 Con~c~]m~ementa~o~ 5 En~r~qmental Comptmncefl~tigation[Enh~ncement 6 Co£sLru~ion Adm;n~tr~tion 7 Other Costs 8 Contingency Totais State Share State Grant I0~000 200,000 $ 1~00,000 $ ~30~000 2T5,9,~0 230,800 Other Slate F~equ]rec; Non-P_st~metec~ Total Fklnds State Share Project Cost $10,000 $ $200.0C© $245,000 $1,700.G~ $275,9~3 $230,8~3 $ 245,~g0 $2,416,7~0$1,916.78~ $500~O00 Element 2: Regional Consewafion Outreach Campaign (,Bay Area Clean Water Agencies] T~k t D~rect ~o}ec{ Admin~s~a~ion &BOO 2 Len~ Purchase~aseme~t - 3 Pi&qning~esi£n!En#inee~h~g/Environmenta~ Docun~ntation - 4 Con~c#o~mp~emen~o~5,000 .$ 1,042,550 5 Env~onmental Compli~nceR~tigation~nhe n cement - 6 C~Bt~ion Adm3n~etion 7 Other Costs 8 ConSngency To~ls !0,000 $ 1,~2,550 S State Share State Grant Element 3: California WaterStar h~&iat~ve - Ba}~ Area (East Bay MunicipaI Utility District)t-~ma~eo t’~or~,~Jmer~ate ~eq~r~-~ [ton-~s~Lmat~ ~otat Task Sacramento Sub[zrban Water Oistr~ct 1 D~rec~ Proiec~ A,dmin~s~ration 2 Lan~ PurchasetEasement 3 P]an~ng,~Design~ngine~gtEnvi~n menta~ Docan~tatio~ 4 C~onamp~emen~o~ 5 En~ronmen~al ~mpl~ance,tM~ti~tion/E~he ncem~t 6 Co.tin.ion Administration 7 Ohh~ Costs 8 ~ngency "otal~ $ $ $ $ $ $ $ State Share State Grant Funds State Share t0.000 40,000 $ $ $ 525,090 242,000 $ 242,00~50,000 40,,000 Pro~e£--t C~st I0~000 24~000 565,0O0 817~00~ E~ement 4: New Business Guidebook Pilot Proiect !East Bay Municipal Utiiit~ District) Ee~mated Non- Task 1 Direct Pro}act Admini~,~a[ion 2 L~d PurchasefEa~ement 3 PlannJng~esign~inee~ng~Enviro~men~ Doc~m~t~tio~ 4 C~o~m#emen~on 5 En~r~n~entai Compl~anceR~]ti~tion/Enhe n~ment 6 Co~bn Ad~n~ion 7 O£~er Co~ts Tot~is State Share 2,500 - 22,500 25,000 Grant 75,000i 75~000 O~erState Require8 Non- Estimete~Totat Funds State Share Preje~ Cost $2,508 $ $ $22,500 $97,500 $ $ $ $ $22,5DB $100,090 Page62 0f83 Exhibit A~Agreement Number 4600007654 Exhibit C - Budget Table 2 E}ement 5: Redwood Ci~t Recycled Water Proiect (Redwood Ci~) Estimated Non- Task 1 Direct Pto~ect Admin[.stration 2 Leng PurchasefEasement 3 Pla~ning/De~ig n,~nginee~m .~tEnvirot~ mental Documeatation 4 C:c’~ sLr~cfisni~nl:~!ementaSor.~Env. Mit~gat}on,~nhan ceme,.~t 5 Co.q ~rudion Administr¢~tion 6 Other Costs 7 C~ntingency Totats State Share State Grant 55,000 288;0.30 $ 1~187.20~$ 972,8,00 160,000 576,000 2~286,200 Element t~: Mountain \~ew / Moffett Area Rec~/cled Water Proiect (Ci~ of Palo Alto} E~t~mated Non- 1 Direc~ Project Admin~s#’ation 2 Len~[ Par ~.~hase,~Ea same nt 3 Plarming/Design~E nginee#n ~’Environmenb.~ Do¢~m~,qtation 4 Consbuctiont~malementa#enF~_nvMi[igat~r#Enhancement 5 C~struction ~dm]ni~tration 6 Other Costs 7 Contingency Totms State Share State Great 2,~12 l,!04,968 4~499,218 $ 972,800 1,022,87~ 350.000 8,799,t71 $ 671,739 $ 10_47&2~61 500,008 ~ anrd are ¢~r~rolled by Other Sta~e Required Non-Estimate# Tota~ Funds S%ate Share Pro~ect Cos~ $20~000 $2.112 $1~776,707 $2,150~000 $t5.95rj,27cJ $350.-0~D 2,15~.000 $2%42t,971 E~ement 7: South Ba}~ Advanced Rec;~’cted Water Treatment Project (Santa Clara Vatle~ Water Dis~ct - San Jose) Estimated Non- Other State Req~ir~ Nan- State Share S~ate Graht $5,000 $ $368,000 $345,400 $2,934,600 $395,000 $ $- !$!~!13.40~ $2,~34,600 Funds Share ~5A00 22,600 $ 368,000 Pro~ect Co~t $ $ $36800D0 $3~280~000 $ $395~000 $ $ $4.,048.0t:~ Element 8: Richmond Advanced Recyclin~ Expansion Praiect- Microfiltrat~on Equipment (EBMUD,! Task 1 2 3 Direm Priest Admin~-at~on Lar~# P~rch8sefEasement PlanuinglDes~nlEngineer~ng]Enviro~men~a Oosum, e~tation 4 3~stru ~ion/Im#~emen~on 5 Environmental Compl~an~R~Wgation~E nl~n ~ eme~ 6 C~s~c~on Admin~ati~q 7 !O~her Co~ 8 JContingency Totals Es~mated Non- State Sh~re t0,O00 598,737 70! ,738 - 467,603 !.778,078 State Gra~ 2,127,600 2/127,608 O~erState Req~red Nan- E~-~mated Tota~ Funds StateShare Pro]eAC~ $1o,ooo $59&757 $ 283,000 $2.829,338 $467,603 $ $ $ 2,83,000 $ 3~905,678 Page 63 0f83 Exhibit A Agreement Number 4600007654 Exhibit C - Budget Table 2 Efement 9: Pacifica Recycled Water Proiect (North Coast Water District) ~Es~m~ated Non- Task 1 Direct 9~ect AdminisWatbn 3 Pla q~;ng~esign/~gine efln #/En vironment~ Doc’am~tation 4 Con~trucfion~mg~ementat~ot~ 5 En~ronmen~a[ Compl~a~ ceR~Rigation~nha ncement 6 Construction Adm;nis~ion 7 Other Costs 8 C~fingency State Share i0~000 809j57 5.975,348 ~24.702 987".652 ~ateGrant $ 370,34~ ,OtherSta~e Required Non-£s~Jmated Total Funds State Share Project Cost 5 $ i0,033 $ $975~757 $ 1~30~0D0 $7~537~40~ $124,702 $- $ l,OOD,OOO $l&,005,~9 $ 8 7~,4o0 $7,907,45£ $744,400 $t,554.,05~ Etement 10: North Marin Recycled, . Water Project (North Mar~n Wa~er District) £st~mated Non- State Share $115379 $0 $61.750 $323,952 4~087581 State Grant 5,000 3,250 &056 244~50 arbor State Reqa~re~ Nan- Ea&mated Total Funds $5,3% ~5L4~2 State Share 535,000 Pro~eA Cost !20.7~7 500,325 3..903,5~9 65~00~3 333,008 5,042,8£0 Etement 11" Mocha Basin Groundwater Deminera~i~tion Proiect (Zone 7 Water E~2rnated Nan- Task I D~rect Praiect Admin~rat~on 2 Le~d Purchase.~aseme~t 3 Pla rmingfDes’~_ n,qEngineermg~tEn viren mental Documentation 4 5 E~’dronmen~a[ Cempl~en~tMitigationlEnhenc~ment 6 Co~r~on A&min~on 7 O£n&r Costs 8 Conting~cy To~a~s State Share 50.000 !0,000 2,332,.538 23,249 2!9~212 4.115.021 2.398,968 32~375~41£ State Grant $ $ $ 740,000 Other S~.~e ReqaiP~-~ Non-Est~mate4~ T~tel Funds S~te Share Project $50~000 S t o,oo~ $2,~90,000 $2.332,530 $2,~OD,0D0 $23.989,~9 $2t9.2~2 $4A 15,02I $2.398,~ $ 4,0~,000 $33,1t5,419 E~ement 12: Direct b~statiation Commercial High Efficiency Toitet Pro.q, am (Maria Municipal Waler District) Estimated Non- OtherSta~e Reqnirec~ Nan- estimated T,atel Task 1 2 3 4 5 6 7 Direct Pm,~act Admin.~tralien Lend Pu[~-~ase~-asement Plannin£1/Oesign,~ngineer~n£tEn vironmen~ Documen~io~ C~tm~o~m~ enta~o~ ~v]r~menta~ Compl~anceR~Wgation,~nk~n cement Cons~c~on Adm~n~s~etion O~h~ Cos~ Contingency State Share 5,000 500 153,210 1:---~.710 State Grant Funds State Share $ 55,ODD $ $ $ $ $ $ $$ Pr~eO Co~t 5,000 500 520;010 35"6,800 $$ 55,DbD 525,51~ Page 64 of 83 Exhibit A Agreement Number 4600007654 Exhibit C - Budget Table 2 Element 13: Groundwater Exploration Pro~ect (Mentara Water & Sanitary District} Eatimated Non- Task 1 2 3 Direct Pro;act AdminisIration Land PurchasefE’asement #la~n~ng,~De sign~ngine&’in ~;Environ rnentaf Ekc, cun~ntation 3c~strucfion/tmp!ementa~ar!Environmental Comp;ian~e Mi~ atianlEnh an ¢ernentfConst~a ction Admir~strat~oa 5 ,Oilier Costs 6 Contingency TotaJs State ShaB State Grast 1,900 9000 $ $37,100 t0.900 $-37,t00 Other State Required Nor.Estimated Totat Funds S.tats Share Pr~e~ C~st $1,900 $ $9,000 $37.,100 $5,ODD 48,0OO Element 14: A1ameda Creek Phase 2 Fish Passage Project IA~ameda, Gaunty. Water DisLrict) Estimated Non- Other State P, eq~ired Nor~- Estimate~ Total Task 1 iD~rect Pro;.ect Administration $ 2 Land PurchasetEa~emeat 3 PlannJng,rDesigniEnginee,’in~tEnviranmenta: Docun’~mtation 4 C~s~ctionl~mp!emen~a~oR $ 5 Environmental C~nlpl~anceR~ation~nh~nceq~ent 6 C~st~ction Administration $ 7 O~r Costs $ 8 C#ntingemcy $ Stere Share State Grant f4,0001 94,000 $60,000 70,000 $500~000 35,000 75,925 $40,OB0 26,000 57°000 371.925 I $ 690,000 Funds State Share $39,000 $70,000 $ 100,000 Eiement 15: Na#a Marsh Restoration - Reck,clad WaterProiect (Sonoma Valle,v Count~, Sanitation Dist) Estimated Non- Other State R, eq~]re-~ Non- Estimated TOta~ State Share 260~000 206,000 3,469,491 t&028,000 200~000 1 ,t37.755 7&168 1,713A24 20,092,832, State Gra~t $ Funds S~te Share $ 2,C46,000 $ 2.046,b09 Pr~e~Ce~ $260.00~ $206,O90 $3~836.291 $13,028,~3~ $200,0~ $I~13~755 $78~68 $ !~713,424 $ 20,459,63~, Element 16: Grant Administration (Bay Area Clean Water AgenciesI)_Fa~imated Non- Task 1 Direct 9ra~ect Admtr&~Imti~q 2 Land PurOtasefEasement 3 Pl~mng~esign~’En~inee#n #tEnviro~me~ Docan~n~tion 4 Co~on~m~emen~o~ 5 Env~o~me~al Compliance/Mitiga~o~E~han~ment 6 Co.tin@on Adm4ni~ration 7 O~er Costs 8 Contingency To~ts State Share - - 10,0,00 $253,090 $ Obher S~aie Req~ire(J No~- =..stin.’~ted Total State Grant Funds State Share Project Cost 260,00,9$ $ $ $ $ $ s $S 2~D00 260 Page 65 of 83 Exhibit A EXHIBIT D STANDARD CONDITIONS Agreement Number 4600007654 D.1 ACCOUNTING AND DEPOSIT OF GRANT DISBURSEMENT: SEPARATE ACCOUNTING OF GRANT DISBURSEMENT AND INTEREST RECORDS: Grantee shall account for the money disbursed pursuant to this Grant Agreement separately from all other Grantee funds. Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts, disbursements, and any interest earned on such funds. Grantee shall require its Local Project Sponsors, contractors, or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times. 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 Grant Agreement. REMITTANCE OF UNEXPENDED FUNDS: Grantee, within a period of sixty (60) calendar days from the final disbursement from State to Grantee of grant funds, shall remit to State any unexpended funds that were disbursed to Grantee under this Grant Agreement and were not needed to pay Eligible Project Costs. D.2 ACKNOWLEDGEMENT OF CREDIT: Grantee and Local Project Sponsors shall include appropriate acknowledgement of credit to the State and to all cost-sharing partners for their support when promoting the IRWM Program or associated grant funded projects or using any data and/or information developed under this Grant Agreement. During construction or implementation of each project, Grantee or Local Project Sponsors shall install a sign at a prominent location which shall include a statement that the project is financed under California Water Security, Clean Drinking Water, Coastal and Beach Protection Fund of 2002, administered by State of California, Department of Water Resources. Grantee shall notify State as each sign has been erected by providing them with a site map with the sign location noted and a photograph of each sign. D.3 AMENDMENT: No amendment or variation of the terms of this Grant 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 Grant Agreement is binding on any of the parties. D.4 AMERICANS WITH DISABILITIES ACT: By signing this Grant Agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. D.5 AUDITS: State reserves the right to conduct an audit at any time between the execution of this Grant Agreement and the completion of the Program, with the costs of such audit borne by State. After completion &the Program, State may require Grantee to conduct a final audit, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a Page 66 of 83 D.6 D.7 D.8 D.9 Exhibit A Agreemen.t Number 4600007654 breach of this Grant Agreement, and State may take any action it deems necessary to protect its interests. Grantee agrees that the awarding department, the Bureau of State Audits, or their designated ~epresentative shall have tl~e right to review and to copy any records and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to maintain such records for a possible audit for a minimum of three (3) 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. BUDGET CONTINGENCY: If the Budget Act of the current year and/or any subsequent years covered under this Grant Agreement does not appropriate sufficient funds for the IRWM Program, this Grant Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Grant Agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Grant Agreement and Grantee shall not be obligated to perform any provisions of this Grant Agreement. Nothing in this Grant Agreement shall be construed to provide 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, State shall have the option to either cancel this Grant Agreement with no liability occurring to State, or offer a Grant Agreement amendment to Grantee to reflect the reduced amount. COMPETITIVE BIDDING AND PROCUREMENTS." Grantee and Local Project Sponsors shall comply with all applicable laws and regulations regarding securing competitive bids and undertaking competitive negotiations in Grantee’s contracts with other entities for acquisition of goods and services and construction of public works with funds provided by State under this Grant Agreement. ~ COMPUTER SOFTWARE." 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 Grant Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws. CONFLICT OF INTEREST: CURRENT STATE EMPLOYEES: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest and which is sponsored or funded by any State agency, unless the employment,, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services. FORMER STATE EMPLOYEES: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was Page 67 of 83 Exhibit A Agreement Number 4600007654 employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service. D.IO DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide, during work on the IRWM Program and throughout the term of this Grant Agreement, such reports, data, information, and certifications as may be reasonably required by State. D.11 DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than 30 days prior to submission of the final project invoice, a final inventory list of equipment purchased with grant funds provided by State. Grantee shall consult with State on the scope of the inventory not less than 60 days prior to the submission of the final project invoice. The inventory shall include all items with a current estimated fair market value of more than $500 per item, and which are not an integral part of the project, to be permanently installed and dedicated solely to the project. Within 60 days of receipt of such inventory, State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes tide to. Cost of transportation, if any, shall be borne by State. D.12 DISPUTES: In the event of an invoice dispute, payment will not be made until the dispute is resolved and a corrected invoice submitted. Failure to use the address exactly as provided may result in return of the invoice to the Grantee. Payment shall be deemed complete upon deposit of the payment, properly addressed, postage prepaid, in the United States mail. D.13 Any claim that Grantee may have regarding the performance of this Grant Agreement including, but not limited to claims for additional compensation or extension of time, shall be submittedto the Director, Department of Water Resources, within thirty (30) calendar days of Grantee’s knowledge of the claim. State and Grantee shall then attempt to negotiate a resolution of such claim and process an amendment to the Grant Agreement to implement the terms of any such resolution. DRUG-FREE WORKPLACE REQUIREMENTS: Grantee, Local Project Sponsors, and their contractors or subcontractors will comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code 8350 etseq.) and have or will provide a drug-free workplace by taking the following actions: a) Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by Government Code Section 8355(a). b) Establish a Drug-Free Awareness Program, as required by Government Code Section 8355(b) to inform employees, contractors, or subcontractors about all of the following: 1.The dangers of drug abuse in the workplace, 2.Grantee’s policy of maintaining a drug-free workplace, 3.Any available counseling, rehabilitation, and employee assistance programs, and 4.Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations. c) Provide as required by Government Code Sections 8355(c), that every employee, contractor, ¯ and/or subcontractor who works under this Grant Agreement: 1. Will receive a copy of Grantee’s drug-free policy statement, and 2. Will agree to abide by terms of Grantee’s condition of employment, contract or subcontract. Page 68of83 Exhibit A Agreement Number 4600007654 D.14 FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED CIVIL ENGINEER: Upon completion of a construction project and as determined by State, Grantee shall provide for a final inspection and certification by a California Registered Civil Engineer that the project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Grant Agreement. D.15 GOVERNING LAW: This Grant Agreement is governed by and shall be interpreted in accordance with the laws of the State of California. D.16 D.17 INCOME RESTRICTIONS: Grantee agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by Grantee under this Grant Agreement shall be paid by Grantee to State, to the extent that theY are properly allocable to costs for which Grantee has been reimbursed by State under this Grant Agreement. INDEMNIFICATION: Grantee agrees to indemnify State and its officers, agents, and employees against and to hold the same free and harmless from any and all claims, demands, damages, losses, costs, expenses, or liability due or incident to, either in whole or in part, and whether directly or indirectly, arising out of the IRWM Program., D.18 INDEPENDENT CAPACITY: Grantee, and the agents and employees of Grantee, if any, in the performance of the Grant Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State. - D.19 D.20 INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Grant Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this .Grant Agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Grant Agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests, as provided in paragraph 20. INSPECTIONS OF PROJECTS BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times, providing a minimum of a 24-hour notice, during the term of the Grant Agreement. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Grant Agreement with State. D.21 NONDISCRIMINATION: During the performance of this Grant Agreement, Grantee, Local Project Sponsors, and their contractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Grantee, Local Project Sponsors, and their cQntractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee, Local Project Sponsors, and their contractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated there under (California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Grant Agreement by reference and made a part hereof as if set forth in full. Grantee, Local Project Page 69 of 83 Exhibit A Agreement Number 4600007654 Sponsors, and their contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Grantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under the Grant Agreement. D.22 OPINIONS AND DETERMINATIONS: The parties agree that review or approval of any IRWM Program applications, documents, permits, plans and specifications or other program information by the State is for administrative purposes only and does not relieve the Grantee of its responsibility to properly plan, design, construct, operate, maintain, implement, or otherwise carryout the IRWM Program. D.23 PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: Grantee and Local Project Sponsors shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the IRWM Program without prior permission of State. Grantee and Local Project Sponsors shall not take any action concerning the performance of this Grant Agreement, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee to meet its obligations under this Grant Agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property acquired through this Grant Agreement be remitted to State. D.24 REMEDIES, COSTS, AND ATTORNEY FEES: Grantee agrees that any remedy provided in this Grant Agreement is in addition to and not in derogation of any other legal or equitable remedy available as a result of breach of this Grant Agreement, whether such breach occurs before or after ..completion of the IRWM Program, and exercise of any remedy provided by this Grant Agreement shall not preclude either party from pursuing any l~gal remedy or right which would otherwise be available. In the event of litigation between the parties hereto arising from this Grant 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. D. 25 RETENTION: State shall, for each project, withhold ter~ percent (10.0%) of the funds requested by Grantee for reimbursement of Eligible Costs until the project is completed and Grantee has met requirements of paragraph 21, Submissions of Reports. D.26 RIGHTS IN DATA: Grantee and Local Project Sponsors agree that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Grant Agreement shall be in the public domain. Grantee and Local Project Sponsors may disclose, disseminate and use in whole or in part, any final form data and information received, collected, and developed under this Grant Agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee and Local Project Sponsors shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. D.27 SEVERABILITY OF UNENFORCEABLE PROVISION: If any provision of this Grant Agreement is held invalid or unenforceable by a court of final jurisdiction, all other provisions of this Grant Agreement shall be construed to remain fully valid, enforceable, and binding on the parties. Page 70 of 83 Exhibit A D.28 SUCCESSORS AND ASSIGNS: Agreement Number 4600007654 This Grant Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Grant Agreement or any part thereof, rights hereunder, or interest herein by Grantee shall be valid unless and until it is approved by State and made subject to such.reasonable terms and conditions as State may impose. D.29 TERMINATION, IMMEDIATE REPAYMENT, INTEREST: This Grant Agreement may be terminated by written notice at any time prior to completion &the IRWM Program, at the option of State, upon violation by Grantee of any material provision after such violation has been called to the attention of Grantee and after failure of Grantee to bring itself into compliance with the provisions of this Grant Agreement within a reasonable time as established by State. In the event of such termination, Grantee agrees, upon demand, toimmediately repay to State an amount equal to the amount of grant funds disbursed to 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 Grantee to the date of full repayment by Grantee. D.30 TIMELINESS: Time is of the essence in this Grant Agreement. D.31 TRAVEL: Grantee agrees that travel and per diem costs shall NOT:be eligible for reimbursement with State funds, and shall NOT be eligible for computing Grantee cost match. Travel includes the costs &transportation, subsistence, and other associated costs incurred by personnel during the term of this Grant Agreement. D.32 WAIVER OF RIGHTS: None of the provisions of this Grant Agreement shall be deemed waived unless expressly waived in writing. It is.the intention of the parties here to that from time to time either party may waive any of its rights under this Grant Agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Grant Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect. Page 71 of 83 Exhibit A EXHIBIT E REPORT FORMAT Agreement Number 4600007654 QUARTERLY REPORT Quarterly Reports shall generally use the following format. This format’ may be modified as necessary to effectively communicate information on the various projects contained in the IRWM Program. The quarterly report should reflect the status of all of the projects identified in the Grant Agreement. A brief summary of program status should also be provided. PROJECT STATUS For each project, describe the work performed during the quarter including: PROJECT INFORMATION Legal matters; Engineering matters; Environmental matters; Status of permits, easements, rights-of-way, andapprovals as may be required by other State, federal, and/or local agencies; Major accomplishments during the quarter (i.e. tasks completed, milestones met, meetings .- held or attended, press releases, etc.); Discussion of the ambient surface water and groundwater data submittal effort for the previous quarter, including a description of the data submitted and date(s) of submittal; Issues/concerns that have, will, or could affect the schedule or budget, with a recommendation on how to correct the matter; and Description of the differences between the work performed and the work outlined in the project work plans. Discussion of project pei’formance achieved over the previous quarter relative to the criteria established in the Project Assessment and Evaluation Plan (PAEP). COST INFORMATION Listing showing costs incurred during the quarter by the grantee, the local project sponsor overseeing the work, and each contractor working on the project. Listing should include hours per task worked on during the quarter for above personnel; A discussion on how the actual budget is progressing in comparison to the project budget included in the Work Plan; and A revised budget, by task, if changed from latest budget in Work Plan. Page 72 of 83 Exhibit A Agreement Number 4600007654 SCHEDULE INFORMATION ¯A schedule showing actual progress verse planned progress as shown in Exhibit B; °A discussion on how the actual schedule is progressing in comparison to the schedule in Exhibit B; and o A revised schedule, by task, if changed from latest schedule in Exhibit B. ANTICIPATED ACTIVITIES NEXT QUARTER Provide a description of anticipated activities for the next quarterly reporting period. Page 73 of 83 Exhibit A EXHIBIT E (CONTINUED) REPORT FORMAT Agreement Number 4600007654 PROJECT COMPLETION REPORT Project Completion Reports shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects contained in the IRWM Program. A Project Completion Report is required for each project identified in the Work Plan, Exhibit A. EXECUTIVE SUMMARY The Executive Summary consists of a maximum often (10) pages summarizing project information (see report status section below for topics). The Executive Summary should include the following: ¯Brief description of work proposed to be done in the original Water Security, Clean Drinking Water, Coastal And Beach Protection Act Of 2002 IRWM Implementation Grant application; ¯Description of actual work completed and any deviations from the work plan identified in the Grant Agreement; ¯Describe the mechanism or process that allows for continued performance monitoring of the projects in meeting the objectives of the IRWM Plan; ¯Identify if as result of the project implementation, updates or changes the IRWM Plan are necessary. If updates or changes anticipated, summarize the necessary updates or changes and anticipated time frame when it will be accomplished; and ¯Describe how the implemented projects will meet the regional priority identified in the IRWM Plan and how the project contributes to regional integration. REPORTS AND/OR PRODUCTS ¯ ¯ Provide a copy of the final technical report or study; Provide a map and shapefile(s) showing the location &the completed project. A description of the geographic projection and datum used for the shapefile must be submitted with the shapefile (a NAD ’27 datum and either a UTM 10 or UTM 11 projection, dependent on the project’s location in the state, should be utilized); If any wells were constructed as part of the project, provide the following information: well logs; borehole geophysical logs; state well number; site information to include horizontal (NAD ’27) and vertical (NAVD ’88) datum to be determined within 0.5 feet; Provide an electronic copy of any as-built plans (media: CD-ROM; PDF format); Provide copies of any data collected along with location maps; If applicable, describe the findings of any study and whether the study determined the engineering, hydrologic, hydrogeologic, environmental, economic and financial feasibility of the project. COST & DISPOSITION OF FUNDS INFORMATION list of invoices showing: The date each invoice was submitted to State; The amount of the invoice; The date the check was received; and Page 74 of 83 Exhibit A Agreement Number 4600007654 ~ The amount of the check. (If a check has not been received for the final invoice, then state this in this section.) A smnmary of final funds disbursement including: ~ Labor cost of personnel of agency/major consultant/sub-consultants. (Indicate personnel, hours, rates, type ofpr6fession and reason for consultant, i.e., design, CEQA work, etc.); ~ Construction cost information, shown by material, equipment, labor costs, and change orders; )~ Any other incurred cost detail; and ~ A statement verifying separate accounting of grant disbursements. Summary of project cost including: ~ Accounting of the cost of project expenditure; ~ Include all internal and external costs not previously disclosed; ~ A discussion of factors that positively or negatively affected the project cost and any deviation from the original project cost estimate. ADDITIONAL INFORMATION A final project schedule showing actual progress verse planned progress; Certification that the project was conducted in accordance with the approved work plan and any approved modifications thereto; and Submittal schedule for Post Performance Report and outline of the reporting format. Page 75 of 83 Exhibit A EXHIBIT E (CONTINUED) REPORT FORMAT Agreement Number 4600007654 GRANT COMPLETION REPORT The Grant Completion Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the various projects in the IRWM Program funded by this Grant Agreement. EXECUTIVE SUMMARY The Executive Summary consists of a maximum of twenty (20) pages summarizing information for the grant as well as the individual projects REPORTS AND/OR PRODUCTS Summary of the regional priorities, objectives, and water management strategies of the IRWM Plan; - Brief comparison of work proposed in the original Water Security, Clean Drinking Water, Coastal And Beach Protection Act Of 2002 IRWM Implementation Grant application and actual work done; Brief description of the projects completed and how they will further the goals identified in the IRWM Plan; COST Identify remaining work and mechanism for their implementation; Identify any changes to the IRWM Plan as result of project implementation; and Submit an updated IRWM Plan. & DISPOSITION OF FUNDS INFORMATION ¯A summary of final funds disbursement for each project. ADDITIONAL INFORMATION A final schedule showing individual project’s actual progress duration verse planned progress Certification that the Program was conducted in accordance with the approved work plan and any approved modifications thereto. Discussion of the synergies of the completed projects, including the integration of project benefits and a comparison of actual benefits versus those discussed in the original proposal. Page 76 of 83 Exhibit A EXHIBIT E (CONTINUED) REPORT FORMAT Agreement Number 4600007654 POST PERFORMANCE REPORT The Post Performance Report shall generally use the following format. This format may be modified as necessary to effectively communicate information on the operation of the various projects in-the IRWM Program funded by this Grant Agreement. REPORTS AND/OR PRODUCTS Summary of the operations of the project; Brief discussion of the project benefits to water quality, water supply, and the environment; Brief comparison and any explanations for any differences between the expected versus actual project success in meeting IRWM priorities as stated in the original IRWM Implementation Grant application; Summary of any additional costs and/or benefits deriving from the project; and Any additional information relevant to or generated by the continued operation of the project.. Page 77 of 83 Exhibit A EXHIBIT F GRANTEE RESOLUTION Agreement Number 4600007654 Page 78 of 83 Exhibit A Agreement Number 4600007654 Page 79 of 83 Exhibit A EXHIBIT G LOCAL PROJECT SPONSORS Agreement Number 4600007654 LOCAL PROJECT SPONSORS Grantee has assigned, for each project, a Local Project Sponsor according to the roles of the participating agencies identified in the IRWM Plan. Local Project Sponsors may act on behalf of Grantee for the purposes of individual project management, oversight, compliance, and operations and maintenance. Local Project Sponsors are identified for each Sponsored Project below: Local Sponsor Agency Designations Sponsored Project Project 1 - Contra Costa Water District Regional Intertie VFDs Project 2 - Regional Water Conservation Outreach Campaign Project 3 - California WaterStar Initiative Project 4 - New Business Guidebook Pilot Program Project 5 - Redwood City Recycled Water Project Project 6 - Mountain View / Moffett Recycled Water Project Project 7 - South Bay Advanced Water Recycling Treatment Proj. Project 8 - Richmond Advanced Recycling Expansion Project Sponsor Agency Contra Costa Water District Bay AreaCleanWater Agencies East BayMunicipalUtility District East BayMunicipal Utility District City of Redwood City City of Palo Alto Santa Clara Valley Water District East Bay Municipal Utility District Agency Address 1331 Concord Avenue Concord, CA 94524 6114 LaSalle Avenue, Ste #456 Oakland, CA 94611 375 11th Street Oakland, CA 94607 375 11 th Street Oakland, CA 94607 1017 Middtefield Road Redwood City, CA 94063 2501 Embarcadero Way Palo Alto, CA 94303 5750 Almaden Expressway San Jose, CA 95118 375 11 t~ Street Oakland, CA 94607 Page 80 of 83 Exhibit A Agreement Number 4600007654 Project 9 - Pacifica Recycled Water Project Project 10 - Nortt~ Marin Recycled Water Project Project 11 - Mocho Groundwater Demineralization Project Project 12 - Direct Installation High Efficiency Toilet Program Project 13 - Montara Groundwater Exploration Project Project 14 - Alameda Creek Phase 2 Fish Passage Project Project 15 - Napa Marsh Restoration/Recycled Water Proj Project 16 - Grant Administration North Coast County Water District North Matin Water District Zone 7 Water Agency Marin Municipal Water District Montara Water and Sanitary District Alameda County Water District Sonoma Valley Counb’ Sanitation District Bay Area Clean Water Agencies 2400 Francisco Boulevard Pacifica, CA 94044 999 Rush Creek Place Novato, CA 94945 100 North Canyons Parkway Livermore, CA 94551 220 Nellen Avenue Corte Madera, CA 94925 P.O. Box 370131 Montara, CA 94037 43885 South Grimmer Boulevard Fremont, CA 94538 P.O. Box 11628 Santa Rosa, CA 95406 6114 LaSalle Avenue, Ste #456 Oaldand, CA 94611 Page 81 of 83 Exhibit A EXHiBiT H STATEWlDE JVJONITORING Agreement Number 4600007654 REQUIREMENTS FOR STATEWIDE MONITORING AND DATA SUBMITTAL Ambient surface water and groundwater quality monitoring data (may include chemical, physical, or biological data) shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports, as described in Exhibit E. Surface water quality monitoring data shall be submitted to the Surface Water Ambient Monitoring Program (SWAMP), which is administered by the State water Resources Control Board (SWRCB). If a project work plan contains a surface water monitoring element, the Grantee shall also prepare, maintain, and implement a Quality Assurance Project Plan (QAPP) in accordance with: ¯The SWAMP QAPP and data reporting requirements. ¯The U.S. EPA’s EPA Requirements for Quality Assurance Project Plans (Publication EPA AQ/R- 5,2001). The QAPP shall be submitted to the State for review and a decision regarding approval. Any costs related to monitoring data collected prior to and not supported by the approved QAPP may not be reimbursec]. Guidance for preparing the QAPP is available at: h ttp :/A~a~av. waterb o ard s. c a. go v/swam p/q a p p. htm I SWAMP comparable electronic format shall be followed. SWAMP data formats and templates can be accessed at: http :!!mpsl.mlm!.calstate.edu!swdbcompare.html After the Grantee has followed the proper quality assurance and quality control (QA/QC) procedures and prepared the data for submittal to SWAMP, the data shall be uploaded, using the methodology established by SWAMP, to the California Environmental Data Exchange Network (CEDEN) database at the following link: http:i/bdat.ca.g~v Groundwater quality monitoring data shall be submitted to the State through the SWRCB Groundwater Ambient Monitoring and Assessment (GAMA) Program. If a project work plan contains a groundwater ambient monitoring element, the Grantee shall contact the SWRCB GAMA Program for guidance on the submittal of ambient groundwater data. Information on the SWRCB GAMA Program can be obtained at: http:!/wua¥.waterboards.ca.gov/gama/index.html Prior to the Grantee implementing any sampling or monitoring activities, State must be notified in writing as the planned procedure for submittal of groundwater data to GAMA. Any costs related to monitoring data collected prior to submittal of planned procedures may not be reimbursed. Page 82 of 83 Exhibit A Agreement Number 4600007654 REQUIREMENTS FOR PROJECT ASSESSMENT AND EVALUATION PLAN (PAEP) SUBMITTAL: Project Assessment and Evaluation Plans (PAEPs) shall be prepared for each project receiving grant funding. For each project, a PAEP shall be submitted to State prior to project construction or monitoring, and as deemed appropriate by State. For information about preparing PAEPs and the recommended content, relevant documentation may be found at the following web site: http://www.waterboards.ca.gov/funding/paep.htmt Page 83 of 83 EXHIBIT "B" WORK PLAN City of Palo Alto Exhibit B Element 6. Mountain View / Moffett Recycled Water Pipeline Project Project Sponsor: City of Palo Alto in partnership with the City of Mountain View Project Description The Mountain View / Moffett Area Water Recycling Project (Project) will construct a recycled water conveyance and distribution system to deliver recycled water from the Palo Alto Regional Water Quality Control Plant (RWQCP), located in the city of Palo Alto, to the city of Mountain View North Bayshore area. The Project is composed of a conveyance pipeline and laterals necessary to serve approximately 100 customers within the Mountain View North Bayshore area in the near term. The potential demand for this area ranges from 1,370 to 1,860 acre-feet per year (AFY). This near-term demand represents ten percent (10%) of the potable water needs of the city of Mountain View. The Project will also serve as the. backbone for a regional recycled water system in the long term. Longer-term opportunities include service to new customers within the RWQCP service area, in particular in Mountain View and all the way to the City of Los Altos. Treatment, storage and pumping facilities already exist in the RWQCP and are therefore not included in the Project. The pipeline will be installed using open trench methods, excepl! at creek crossings. Project Components Task l. Direct Project Administration DPA includes preparation of a Project Assessment and Evaluation Plan, quarterly reports, a project completion report, and post performance reports. DPA costs of $20,000 are funded by the project sponsor as a local cost. Task 2..Land Purchase/Easement This projectwill be constructed mainly in existing city streets and right-of;ways. Easement is needed in one location in Palo Alto. The City of Palo Alto has obtained a temporary construction easement and a permanent utilities easement at that site, A registered land surveyor in the State of California performed the survey for the easement and prepared the documents. City of Palo Alto acquired the easement at no cost, except for the document preparation fee of$2,112, which is a local cost. In exchange, the property owner obtained the right to an existing City easement in the same~property that is no longer needed. Task 3. Planning/Design/Engineering/Environmental Documentation Planning efforts include site investigation, market analy;is, project alternatives development, public outreach and workshops. The planning efforts were documented in the Facility Plan Report. The Facility Plan Report was completed in December 2003. RMC Water & Environment completed final design of the project in March 2007, which incorporated recommendations from the value engineering report that was prepared in November 2006. The bid package for the project has been advertised. Bid was awarded to the lowest responsible bidder, McGuire & Hester in June 2007. Environmental Documentation included an Initial Study/Mitigated Negative Declaration (IS-MND). A Mitigation Monitoring and Reporting Plan was completed as part of the IS-MND. The Notice of Determination was filed on February 04, 2004 in Santa Clara County. The planning, design, and environmental documentation costs totaled to $1,776,707, of which $671,739 was paid by other State funding and the balance was local cost. Exhibit B Task 4. Construction/Implementation/Environmental Mitigation/Enhancement Construction activities include the following: ¯Approx. 6,222 feet of 30".pipe and fittings ¯Approx. 12,791 feet of 24" pipe and fittings ¯Approx. 2;763 feet of 18" 15ipe and fittings ¯Approx. 748 feet of 16" pipe and fittings ¯Approx. 4,645 feet of 12" pipe and fittings ¯Approx. 8000 feet small diameter pipe and fittings ¯Valves and hydrants ¯Customer connections and meters A Mitigation Monitoring and Reporting Plan was prepared and appended to the IS-MND. The following mitigations were identified and will be implemented during construction: ¯A dust abatement program ¯A spill prevention plan ¯A qualified biological monitor will be on site during crossing over the creeks ¯A registered professional archeologist will be on-call. If any cultural resources are encountered during construction, the archeologist will be notified to record the location of such resources and City will coordinate any findings with the appropriate state, federal and tribal entities. A health and safety plan The bid price for the construction of the project is $15,950,279, with $972,800 to be funded from the grant. $10,478,261 is covered by other State funds and the local share is $4,499,218. These costs include environmental compliance, mitigation and enhancement activities. Task 5. ConsO*uction Administ~*ation RMCWater & Environment and URS CORP will provide construction Administration. This task as described below includes construction management services: ¯Review contractor’s schedule and make recommendations []Provide inspection during construction []Monitor compliance with all permit conditions ¯Monitor compliance with all mitigation plans and programs, including labor compliance program ¯Monitor compliance with bid documents and perform quality control []Review change order requests and provide recommendations ¯Manage and coordinate all project inquiries, serve as focal point ¯Manage and coordinate all contractor correspondence ¯Maintain detailed project records ¯Receive, log, and distribute all submittals for review []Review progress payment requests []Inspect completed construction []Recommend final payment and submit all project files for archiving Total construction administration costs are $1,522,873. $500,000 will be provided by other State funds and the balance will be local costs. Task 6. Other Costs There are a number of permits and agency review must be obtained prior to project construction, including a street opening permit and County Health Department design review for Title 22 compliance. The total costs for this are estimated at $350,000, which is a local cost. Exhibit B Task 7. Contingency These costs include costs to handle unknown conditions encountered during construction of the project, provide night-time work as maybe required to minimize impact to traffic, and cover items that maybe different from the drawings. Contingency is estimated at $1,800,000, which is a local cost. I I Exhibit C EXHIBIT "D" BUDGET City of Palo Alto Proiect No. 6: Mountain View / Moffett Area Rec),’cled Water Proiect (Cit)/of Palo Alto) Estimated Non- Task 1 Direct Project Administration 2 Land Purchase/Easement 3 PlanninglDesignlEngineeringlEnvironmental Documentation 4 Construction/Implementation/Env.Mitigation/Enhancement 5 Construction Administration 6 Other Costs 7 Contingency Totals $ $ $ $ $ $ $ $ State Share 20,000 2,112 1, ! 04,968 4,499,218 1,022,873 350,000 1,800,000 8,799,171 State Grant $ 972,800 972,8OO Other State Funds $671,739 $ 10,478,261 $ 500,000 $ 11,650,000 Note: Other State Funds in the amount of $11,650,000 have been awarded to this project and are controlled by a separate grant funding agreement. Required Non- State Share $ 2,150,000 $ 2,150,000 Estimated Total Project Cost $20,000 $2,112 $1,776,7O7 $15,950,279 $1,522,873 $35O,OOO $ 1,800,000 $ 21,421,971 EXHIBIT "E" REPORT FORMAT PROGRESS REPORTS Progress Reports shall generally use the following format. This format may be modified as necessary to effectively communicate information on Project. The Progress Reports should reflect the status of Project. Project Status For Project, describe the work performed during the reporting period, including: Project Information ¯Legal matters; ¯Engineering matters; ¯Environmental matters; Status of permits, easements, rights-of-way, and approvals as may be required by other State, federal and/or local agencies; Major accomplishments during the reporting period (i.e., tasks completed, milestones met, meetings held or attended, press releases, etc.); Discussion of the ambient surface water and groundwater data submittal effort for the previous month, including a description of the data submitted and date(s) of submittal; Issues/concerns that have, will or could affect the schedule or budget, with a recommendation on how to correct the matter; Describe the differences between the work performed and the work outlined in Project work plans; Discussion of project performance achieved over the previous quarter relative to the criteria established in the Project Assessment and Evaluation Plan ("PAEP"). {00907096}34 Cost Information ¯Lis.ting showing cQsts incurred during the reporting period by Project Sponsor and each contractor and subcontractor working on Project. Listing should include hours per task worked on during the reporting period for personnel. A discussion on how the actual budget is progressing in comparison to the project budget included in the Work Plan; and A revised budget, by task, if changed from the latest budget in Work Plan. Schedule Information ¯A schedule showing actual progress versus planned progress as shown on Exhibit "C", Schedule; °A discussion on how the actual schedule is progressing in comparison to the schedule in Exhibit "C"; ° A revised schedule, by task, if changed from latest schedule in Exhibit "C". Anticipated Activities During Next Reporting Period Provide a description of anticipated activities for the next reporting period. PRO3ECT COMPLETION REPORT Project Completion Reports shall generally use the following format. This format may be modified as necessary to effectively communicate information on Project. Executive Summary The Executive Summary consists of a maximum often (10) pages summarizing Project information. The Executive Summary should include the following: Brief description of work proposed to be done in the original work plan; Description of actual work completed and any deviations from the original work plan; °Describe the mechanism or process that allows for continued performance monitoring of Project in meeting the objectives of the Implementation Agreement; Identify if as a result of Project implementation, updates or changes to the Implementation Agreement are necessary. If updates or changes are anticipated, {00907096}35 Summarize the necessary updates or changes and anticipated time frame when it will be accomplished; and Describe how the implemented Project will meet the regional priority identified in the State Agreement and how Project contributes to regional integration. Reports and/or Products Provide a copy of the final technical report or studyi ¯Provide a map and shapefile(s) showing the ldcation of the completed Project. A description of the geographic projection and datum used for the shapefile must be submitted with the shapefile (a NAD ’27 datum and either a UTM 10 or UTM 11 projection, dependent on the project’s location in the State, should be utilized); ¯If any wells were constructed as part of Project, provide the following information: well logs; borehole geophysical logs; state well number; site information to include horizontal (NAD ’27) and vertical (NAVD ’88) datum to be determined within 0.5 feet; Provide an electronic copy of any as-built plans (media: CD-ROM; PDF format); ° Provide copies of any data collected along with location maps; °If applicable, describe the findings of any study and whether the study determined the engineering, hydrologic, hydrogeologic, environmental, economic and financial feasibility of Project. Cost and Disposition of Funds Information ~ ¯A list of invoices showing: o The date each invoice was submitted to BACWA; o The amount of the invoice; o The date the check was received by Project Sponsor for the invoice; and The amount of the check. (If a check has not been received for the final invoice, then state this in this section.) °A summary of final funds disbursement, including: ~Labor cost of personnel of Project Sponsor/major consultant/sub- consultant. (Indicate personnel, hours, rates, type of profession and reason for consultant, i.e., design, CEQA work, etc.); {00907096}36 o Construction cost information, shown by material, equipment, labor costs, and change orders; o Any other incurred cost detail; and o A statement verifying separate accounting of State Grant Amount disbursements. ¯A summary of Project cost, including: o Accounting of the cost of Project expenditure; o Include all internal and external costs not previously disclosed; o A discussion of factors that positively or negatively affected Project and any deviation from the original Project cost estimate. Additional Information °A final Project schedule showing actual progress versus planned progress; °Certification that Project was conducted in accordance with the approved work plan and any approved modifications thereto; and °Submittal schedule for Post Performance Report and outline of the reporting format. POST PERFORMANCE REPORT The Post Performance Reports shall generally use the following format. This format may be modified as necessary to effectively communicate information on the operation of Project. Reports and/or Products Summary of the operations of Project; ¯Brief discussion of Project benefits to water quality, water supply and the environment; Brief comparison and any explanations for any difference between the expected versus actual Project success in meeting priorities as stated in the State Agreement and Implementation Agreement; Summary of any additional costs and/or benefits deriving from Project; and {00907096}37 ¯Any additional information relevant to or generated by the continued operation of Project. {00907096}38 EXHIBIT "F" (Copy of BACWA Board Resolution authorizing execution of this Implementation Agreement) {00907096} EXHIBIT "G" (Copy of Project Sponsor Board Resolution authorizing execution of this Implementation Agreement) {00907096} EXHIBIT "H" REQUIREMENTS FOR STATEWIDE MONITORING AND DATA SUBMITAL Ambient surface water and groundwater quality monitoring data (may include chemical, physical, or biological data) shall be submitted to the State as described below, with a narrative description of data submittal activities included in project reports, as described in Exhibit "E". Surface water quality monitoring data shall be submitted to the Surface Water Ambient Monitoring Program (SWAMP), which is administered by the State Water Resources Control Board (SWRCB). If a project work plan contains a surface water monitoring element, the Grantee shall also prepare, maintain, and implement a Quality Assurance Project Plan (QAPP) in accordance with: The SWQAMP QAPP and data reporting requirements. The USEPA’s EPA Requirements for Quality Assurance Project Plans (Publication EPA AQ/R-5, 2001). The QAPP shall be submitted to the State for review and a decision regarding approval. Any costs related to monitoring data collected prior to and not supported by the approved AQPP may not be reimbursed. Guidance for preparing the QAPP is available at:-. http://www.waterboards.ca.gov/swamp/qapp.html SWAMP comparable electronic format shall be followed. SWAMP data formats and templates can be accessed at: https://mpsl.mlml.calstate.edu/swdbcompare.html After the Grantee has followed the proper quality assurance and quality control (AQ/AC) procedures and prepared the data for submittal to SWAMP, the data shall be uploaded, using the methodology established by SWAMP, to the California Environmental Data Exchange Network (CEDEN) database at the following link: http://bdat.ca.gov Groundwater quality monitoring data shall be submitted to the State through the SWRCB Groundwater Ambient Monitoring and Assessment (GAMA) Program. Ifa project work plan contains a groundwater ambient monitoring element, the Grantee shall contact the SWRCB GAMA Program for guidance on the submittal of ambient groundwater data. Information on the SWRCB GAMA Program can be obtained at: http ://www.waterboards.ca.gov/gama/index.html {00907096}41 Prior to Project Spon.sor implementing any sampling or monitoring activities, State must be notified in writing as the planned procedure for submittal of groundwater data to GAMA. Any costs related to monitoring data collected prior to submittal of planned procedures may not be reimbursed. REQUIREMENTS FOR PROJECT ASSESSMENT AND EVALUATION PLAN (PAEP) SUBMITTAL: Project Assessment and Evaluation Plans (PAEPs) shall be prepared for each project receiving grant funding. For each project, a PAEP shall be submitted to State prior to project construction or monitoring, and as deemed appropriate by State. For information about preparing PAEPs and the recommended content, relevant documentation may be found at the following web site: http ://www.waterboards.ca.gov/funding/paep.html {00907096}42 NOT YET APPROVED ATTACHMENT B RESOLUTION NO. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING-THE CITY MANAGER TO EXECUTE THE IMPLEMENTATION AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE BAY AREA CLEAN WATER AGENCIES FOR THE DISBURSEMENT OF A $972,800 IN STATE GRANT FUNDS FOR THE MOUNTAIN VIEW/MOFFETT AREA RECYCLED WATER PIPELINE PROJECT WHEREAS, the Mountain View/Moffett Area recycled water pipeline project is a joint project between the cities of Palo Alto and Mountain View to construct a reclaimed water pipeline from the Palo Alto Regional Water Quality Control Plant (RWQCP) to the Mountain View Shoreline community; WHEREAS, the City of Palo Alto is the lead agency for the project and has worked together with the city of Mountain View to seek grant funds for the project since the fall of 20(/3; WHEREAS, in June 2006, the City of Palo Alto, in partnership with other Bay Area water agencies submitted a consolidated Step 2 grant application to the California Department of Water Resources (DWR) and State Water Resources Control Board to obtain an Integrated Regional Water Management Implementation Grant pursuant to the Water Security, Clean Drinking Water, Coastal and Beach Protection Act of 2002 (California Water Code Section 79560 et seq.), for the Mountain View/Moffett Area recycled water pipeline project; and WHEREAS, the Bay Area Clean Water Ager~cies (BACWA) is a Joint Powers Authority existing under the laws of the State of California and is made up of public utilities that collect and treat wastewater from the nine Bay Area counties that surround the San Francisco Bay. BACWA was the grant applicant on behalf of the participating water agencies and would be the contracting entity to execute and administer the grant agreement with DWR; and WHEREAS, on April 9, 2007, BACWA received notice of a conditional grant award from DWR; and WHEREAS, the participating Bay Area water agencies, which are considered local project sponsors under the grant agreement, must provide notice to BACWA that individual agencies receiving grants are aware of and intend to comply with the terms of the Implementation Agreement. NOW, THEREFORE, the Council of the City of Palo Alto does resolve as follows: SECTION 1. The City of Palo Alto agrees to accept and comply with the contract terms, as a local project sponsor, set forth in the Implementation Agreement. 081015 syn 6050562 NOT YET APPROVED SECTION 2. The Council hereby authorizes and directs the City Manager to execute the Implementation Agreement between City and BACWA for the Mountain View/Moffett Area recycled water pipeline project. SECTION 3. The Council finds that the adoption of this resolution does not require review under the California Environmental Quality Act because it does not meet the definition of a "project" pursuant to California Public Resources Code Sec. 21065. A Mitigated Negative Declaration and mitigation/monitoring and reporting plan was prepared and adopted by Council for the Mountain View/Moffett Area recycled water pipeline project on January 12, 2004. INTRODUCED AND PASSED: AYES: NOES: ABSENT: AB S TENTIONS: ATTEST:APPROVED: City Clerk APPROVED AS TO FORM: Deputy City Attorney Mayor City Manager Director of Administrative Services Director of Utilities 081015 syn 6050562 2