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HomeMy WebLinkAboutStaff Report 439-06City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:DECEMBER 18, 2006 CMR:439:06 SUBJECT:APPROVAL OF AN AGREEMENT BETWEEN THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY AND ITS MEMBER AGENCIES WITH RESPECT TO ROLES AND RESPONSIBILITIES REGARDING THE ARMY CORPS OF ENGINEERS’ FEASIBILITY STUDY RECOMMENDATION Staff recommends that Council approve and authorize the City Manager to sign the attached agreement between the San Francisquito Creek Joint Powers Authority (JPA) and its member agencies with respect to roles and responsibilities regarding the Army Corps of Engineers’ feasibility study. BACKGROUND In April 1999, the cities of Palo Alto, Menlo Park, and East Palo Alto, the Santa Clara Valley Water District, and the San Mateo County Flood Control District formed the JPA in order to cooperatively pursue a flood damage reduction and "ecosystem restoration project for San Francisquito Creek. Due to the substantial cost and complexity of a comprehensive watershed- wide flood control solution for San Francisquito Creek, the JPA has partnered with the U.S. Army Corps of Engineers (Corps) on a General Investigation (GI) project to plan and implement the improvements. Through this cooperative .arrangement, a substantial portion of the project costs will be funded by the federal government and supplemented by local matching funds. The project is currently in the feasibility phase, during which the Corps and the JPA will jointly develop project alternatives and analyze their technical, environmental, and financial merits and impacts. On November 17~, 2005, the JPA Board of Directors approved a Feasibility Cost Share Agreement (FCSA) with the Corps to initiate the feasibility, study phase of the project. The FCSA commits the JPA to participate in the feasibility phase of the GI project as the local sponsor. This commitment includes an agreement to pay 50% of the cost &the feasibility study (either in cash or in-kind services) and to work closely with the Corps in the execution and review of the study. The FCSA includes descriptions of the scope, schedule, and cost of the feasibility study that serve as a roadmap for implementation of the study. The FCSA contains a provision that the feasibility study will analyze the cost and impacts of alternatives that address both fluvial (creek-related) and tidal flooding in the San Francisquito Creek watershed. 8 CMR:439:06 Page 1 of 4 On November 29, 2005, the Santa Clara Valley Water District (Water District) and the San Marco County Flood Control District entered into an agreement with the JPA to provide up to $1.5 million each to fund the local share of the fluvial flooding portion of the feasibility study. The agreement contains provisions detailing the amount, method and timing of financial contributions to be applied towards the cost of the study. The Water District and the cities of East Palo Alto and Menlo Park have also agreed by action of their governing bodies to contribute up to $74,100, $33,000, and $32,500 respectively to fund the local share of the tidal flooding portion of the feasibility study. Palo Alto has not been asked to contribute funding towards the study, since the Water District has primary responsibility for flood control in the County and collects benefit assessments and special taxes from Palo Alto residents and businesses that are being used to fund its contribution to the study. DISCUSSION The attached agreement defines and describes the roles and responsibilities of the JPA and each of its member agencies with respect to the feasibility study (Attachment A). The following is a summary of the key elements of the agreement: Commits the Water District and the cities of East Palo Alto and Menlo Park to provide funding for the tidal flooding portion of the feasibility study ¯Outlines a set of mutual objectives for the feasibility study ¯Assigns the JPA Executive Director primary responsibility for performing the obligations required of the local sponsor in the Feasibility Cost Share Agreement Commits the JPA member agencies to assign staff members to participate on a Management Team that provides advice and guidance to the JPA Executive Director during the feasibility study Outlines a consensus-based approach to be used for decision making during implementation of the feasibility study Requires the development and implementation of a local outreach plan to solicit input from the general public during the environmental review and alternatives analysis process, to be funded separately from the existing funding agreement. The Management Team is meeting on a regular basis to develop the scope of the local outreach plan and to identify options for funding it. Defines the mechanisms for modifying the agreement to reflect changes in financial contributions or contributions of in-kind services towards the feasibility study by JPA member agencies. Future changes that are of a technical or planning nature and have a value less than or equal to $100,000 can be approved as an addendum signed by the chief executive of each member agency. Changes exceeding the limitations cited above must be executed by an amendment to contract subject to approval by the governing body of each member agency. Staff from the City Attorney’s Office and the Public Works Department have reviewed the agreement and recommend its approval. RESOURCE IMPACT Palo Alto will be an active participant in the feasibility study and will contribute staff time as an in-kind service, but it will not make a cash contribution to the study. The Water District is providing funding of $1.575 million in cash and services for the study on behalf of the Santa CMR:439:06 Page 2 of 4 Clara County portion of the San Francisquito Creek watershed, including the City of Palo Alto. It is appropriate that the Water District provide full project funding for the Santa Clara County portion of the watershed, as the Water District has primary responsibility for flood control in the County. The Water District funds are generated by benefit assessments and special taxes collected by residents and businesses in Palo Alto and throughout the County for flood control purposes. POLICY IMPLICATIONS Council’s adoption of the attached agreement is consistent with the following Comprehensive Plan policies and programs: Policy N-9:Avoid fencing, piping, and channelization of creeks when flood control and public safety can be achieved through measures that preserve the natural environment and habitat of the creek. Policy N-10:Work with the Santa Clara Valley Water District and other relevant regional agencies to enhance riparian corridors and provide adequate flood control by use of low impact restoration strategies. Policy N-11: Preserve the integrity of riparian corridors. ENVIRONMENTAL REVIEW Council’s adoption of the attached agreement is not considered a project under the California Environmental Quality Act (CEQA). Environmental review of the proposed San Francisquito Creek Flood Damage Reduction and Ecosystem Restoration project alternatives will be conducted jointly by the Corps and the JPA during the feasibility study. The environmental. review process will involve significant input from local residents, businesses, and stakeholders. Due to the Corps’ involvement in the project, the process will be conducted in accordance with the requirements of both CEQA and the federal National Environmental Policy Act (NEPA). ATTACHMENT Attachment A: Agreement PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: Senior Engineer GLENN S. ROBERTS EMm~ HARRISON Assistant City Manager CMR:439:06 Page 3 of 4 Cynthia D’Agosta, San Francisquito Creek Joint Powers Authority Pam Stumer, San Francisquito Watershed Council Norman Beamer, Crescent Park Neighborhood Association Karen White, Duveneck/St. Francis Neighborhood Association CMR:439:06 Page 4 of 4 ATTACHMENT A Agreement San Francisquito Creek Joint Powers Authority and its Member Agencies Roles and Responsibilities Regarding The Army Corps of Engineers’ Feasibility Cost Share Agreement This Agreement ("Agreement") is made and entered into as of ,2006, by and among the SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY, a California joint powers authority ("Authority"), the SAN MATEO COUNTY FLOOD CONTROL DISTRICT, a special district of the State of California ("San Mateo"), the SANTA CLARA VALLEY WATER DISTRICT, a special district of the State of California ("Water District ~’), the CITY OF EAST PALO ALTO, a municipal corporation ("East Palo Alto"), the CITY Ot~ MENLO PARK, a municipal corporation ("Menlo Park"), and the CITY OF PALO ALTO, a California charter city ("Palo Alto"), collectively referred to as Parties or individually as Party. RECITALS A. San Francisquito Creek has a history of flooding the communities in and around East Palo Alto, Menlo Park and Palo Alto. The latest and the most damaging flood occurred in 1998. B. Following the flood of 1998, East Palo Alto, Menlo Park, Palo Alto, San Mateo and Water District formed the San Francisquito Creek Joint Powers Authority on May 18, 1999.¯These entities are full members of the Authority. The Authority was authorized to represent its member agencies as the local sponsor for a U.S. Army Corps of Engineers’ ("Corps") flood damage reduction and ecosystem restoration project on May 23, 2002. C. The Corps, working with the Authority as the local sponsor, completed a reconnaissance study for San Francisquito Creek in 2005. The reconnaissance study indicated a Federal Interest in developing a flood damage reduction and ecosystem restoration project for San Francisquito Creek. D. Based on the reconnaissance study and extensive discussions between the Corps and the Authority, on November 17, 2005, a Feasibility Cost Share Agreement ("FCSA") was entered into between the Corps and the Authority for a flood damage reduction and ecosystem restoration project feasibility study of San Fraricisquito Creek and adjacent tidal areas ("Study"). The Corps, pursuant to the FCSA, has agreed to initiate a project to evaluate flood protection and ecosystem restoration alternatives within the San Francisquito Creek Watershed and tidal areas as defined within, in Santa Clara and San Mateo Counties. The FCSA and its associated Project Management Plan is attached as Exhibit A. E. The FCSA requires the Authority, as the project local sponsor, to contribute to the Corps, in cash or in-kind services, fifty percent (50%) of the cost of the Study, as described in the FCSA, as the local share. The FCSA also requires the Authority to fund one hundred percent (100%) of the cost of other studies as may be required but not identified as funded by the Corps 921111-2 1 in the FCSA, including but not limited to the environmental review that may be required by the California Environmental Quality Act ("CEQA"). F. San Mateo and Water District agreed to provide up to $1.5 million each ($3 million total) to fund the local share of the Study pursuant to the Agreement for Funding a Feasibility Study for San Francisquito Creek Among the San Francisquito Creek Joint Powers Authority, the San Mateo County Flood Control District and the Santa Clara Valley Water District ("Funding Agreement"), which details the amount, method and timing of financial contributions from San Mateo and Water District to be applied towards the cost of conducting the fluvial portion of the Study, and is attached as Exhibit B. G. East Palo Alto agreed by City Council action on November 15, 2005 to provide up to $33,000 toward the local share of the Study for the particular purpose of including Tidal Option 1, as described in the FCSA, in the Study. H. Menlo Park agreed by City Council action on November 8, 2005 to provide up to $32,500 toward the local share of the Study for the particular purpose of including Tidal Option 1, as described in the FCSA, in ttie Study. I. The FCSA allows the Authority to credit staff time as in-kind services up to $592,800 toward the local share of the Study. J. The Joint Powers Agreement between the Parties authorizes the Authority to enter into contracts with its member agencies to perform any of the duties and responsibilities of the Authority. NOW, THEREFORE, in consideration of the foregoing recitals, and the terms and conditions in the sections contained herein below, the Parties agree, as follows: I.PROJECT DESCRIPTION AND MUTUAL OBJECTIVES A. Project Description The project is to conduct the Study as described in the Project Management Plan ("PMP") of the FCSA for a Flood Damage Reduction and Ecosystem Restoration ("FDRER") project for San Francisquito Creek and adjacent tidal areas. The Study will investigate the opportunities to reduce both fluvial (creek) and tidal flooding, which threaten public safety, and to restore ecosystem quality and function, where possible. The geographical area of the Study includes the entire watershed of San Francisquito Creek and tidal areas extending from the northernmost bay-shore point in Menlo Park to the southernmost bay-shore point in Palo Alto. The proposed area of the Study is shown on the map, which is attached as Exhibit C. The Study will also consider potential impacts to, and without- project conditions of, adjacent areas of influence that may not be contained within the proposed area of the Study. 921111-2 2 The Study is the second phase within the planning process of a Corps FDRER project. The Study will evaluate project alternatives in regard to cost, feasibility and environmental impacts. Significant elements of the Study include, but are not limited to, the following: 1.Environmental Documents: One element of the Study is the production of an Environmental Impact Statement ("EIS") in accordance with the National Environmental Policy Act ("NEPA".) The corresponding Environmental Impact Report, ("EIR"), required by CEQA, will be developed by the Parties at their own expense. The EIR is expected to use much of the same supporting material as the EIS and may in fact be nearly the same document. 2.Alternatives and Engineering Evaluation: Various alternatives will be identified and scoped through suggestions and input from the Corps, the Authority and its member agencies, the public and other stakeholders. The Corps, with input from the staff of the Authority and its member agencies, will evaluate the feasibility of the alternatives with regards to engineering, costs, environmental impacts and other aspects important to the community. 3.Public Participation: The FDRER project is intended to result in flood damage reduction and ecosystem restorati on within the San Francisquito Creek watershed, adjacent tidal and wetland areas, and their areas of influence. The Corps, the Authority and its meniber agencies have agreed that the community that lives within the watershed, tidal areas, and areas of influence must be involved in the development of the alternatives and the environmental documents, and that public outreach and participation is an important element of the Study. B.Mutual Ob,iectives The Parties mutually agree to the following objectives of the Study: Develop the Study to best incorporate and address the concerns of the Authority and its member and associate member agencies, the public, and other stakeholders. Develop a wide range of alternatives within the Study and strive to identify the alternative, or combination of alternatives, that provides the best flood reduction for the most people at the most reasonable cost. Preserve and restore the natural environment of the creek corridor and tidal area as a habitable resource for wildlife. Improve habitat for steelhead trout. Explore opportunities for one or more trails, compatible with the riparian and marshy natural setting that will accommodate a variety of trail users, with appropriate routing of paths, points, overlooks, vegetation and screening. Protect and restore riparian and aquatic habitat along the creek corridor. 921111-2 3 1I.SPECIFIC PROVISIONS A. Purpose The Funding Agreement provides for the members of the Authority to enter into an implementation agreement with the Authority defining the roles and responsibilities of the members during the Study. This Agreement is the implementation agreement required by the Funding Agreement. The provisions of this Agreement shall supercede and control over any conflicting provisions in the Funding Agreement. B.Contributions Water District shall contribute $74,100 toward the local share of the Study for the particular purpose of including Tidal Option 2, as described in the FCSA, in the Study. Upon written request for full or partial payment of the local share for the Tidal Option 2, as described in the FCSA, Water District shall deposit the requested amount of money in an escrow account managed by Authoritv. This contribution is in addition to Water District’s contribution under the Funding Agreement. Water District shall not receive any credit or reimbursement for its financial contribution to the inclusion of Tidal Option 2 in the Study, nor shall East Palo Alto or Menlo Park receive any credit or reimbursement for their financial contributions to the inclusion of Tidal Option 1 in the Study, as described in Recitals G and H above. C.Cooperation in FCSA Implementation Each Party shall cooperate with and assist the Authority in the implementation of the FCSA, including providing any reports, studies, data or other documents and information prepared or held by a Party that may be relevant to the completion of the Study. No credit, reimbursement or other entitlement shall be provided to a Party for this type of general assistance. ~ D.Management of FCSA and Study Except as specifically provided by this Agreement, the Authority, in its sole discretion, shall be responsible for the performance of the Authority’s obligations under the FCSA related to conducting and overseeing the Study. The other Parties to this Agreement shall have no rights or obligations under the FCSA to conduct or oversee the Study, except as provided in this Agreement. San Mateo, Water District, East Palo Alto, Menlo Park and Palo Alto staffs are designated as members of Authority’s project management team ("Management Team") that will consult with and provide advice to the Authority’s Executive Director ("Director") on the implementation of the FCSA. The Parties shall provide appropriate representatives to the Management Team and participate in Management Team meetings and activities. E.Consensus Approval of Work Products The Director shall strive to obtain consensus for acceptance or approval of documents developed by the Corps or its consultants or actions regarding the Study from the Management Team. The individual Management Team members shall support the Management Team and the Director by providing timely review of documents and issues, and by providing information and material that promotes Management Team’s work 921111-2 4 F.Local Outreach Plan The Authority shall develop a local public outreach plan to supplement the Corps’ outreach plan for the Study. Public meetings related to the local public outreach plan and the Corps’ outreach plan shall be supported by the member representatives of the Management Team. Support shall be rendered in the form of materials, venue, attendance, and/or presentations. Funding for the costs associated with the local outreach plan shall be secured by the Authority, outside of this Agreement, either as part of its annual operating budget or through additional financial contributions from the Authority’s member agencies. III. GENERAL PROVISIONS A. Additional or Advance Funding or In-Kind Contributions Any funding for the Study in addition to what is stipulated within this Agreement or the Funding Agreement, or any funding advanced by any of the Parties for the purpose of conducting the Study at a pace greater than annual Congressional appropriations provide for, or any in-kind services or contributions rendered towards the Study on behalf of the Authority by any Party, shall be agreed to by an addendum or amendment to this Agreement as provided below. The source, timing, manner of transaction, and administration of contributions for future credit or reimbursement for any additional or advanced funding or in-kind contribution shall be described in the addendum or amendment. An addendum to this Agreement may be proposed by any of the Parties. An addendum may be used only for additional or advance funding or in-kind contributions towards tasks that (1) are of a technical or planning nature and (2) have a cost estimate of less than or equal to $100,000 per task identified in the PMP. An addendum shall be approved in the following manner: 1.The Party proposing the addendum shall first obtain the approval of the Management Team. An addendum may be proposed by more than one Party and may include" multiple tasks. After such approVal by the Management Team is obtained, the proposing Party shall prepare an addendum that describes the following: a. The scope of work for additional funding or in-kind services to be provlded, or the list of tasks identified in the PMP to be accelerated by advance funding. No The timetable for the additional services or in-kind contribution to be performed. c. The amount of additional or advance funding that will be contributed or in-kind services that will be performed. d.The method of credit or reimbursement to the proposing Party. 921111-2 5 2.The proposed addendum shall not become effective until it is approved by the chief executive officer of each of the Parties, the Board of the Authority and the project manager of the Corps. Any other additional or advance funding or in:kind contribution not meeting the limitations on addendums described above shall be approved only as an amendment to this Agreement that is approved by the governing body of each Party. For additional or advance funding or in-kind contributions provided by San Mateo or Water District as part of an addendum or amendment, the actual costs up to the dollar amount ’ specified in the addendum or amendment shall be credited by the Corps, upon the Corps’ acceptance of the funded or provided work, against the next cost share invoice under the Funding Agreement. For additional or advance funding or in-kind contributions provided by East Palo Alto, Menlo Park or Palo Alto, the credit or reimbursement shall be provided in the manner described in the approved addendum or amendment B.Mutual Hold Harmless 1.Each Party shall defend, hold harmless and indemnify the other Parties, and their elected and appointed officials, officers, directors and employees from any and all claims for injuries or damages which arise out of the terms and conditions of this Agreement and which result from the intentional or unintentional misconduct, negligent acts or omissions of that Party, and its elected and appointed officials, officers, directors and employees. 2.In the event of concurrent intentional or unintentional misconduct, negligent acts or omissions by the Parties. (or any of their respective elected and appointed officials, officers, directors and employees), then the liability for any and all claims for injuries or damages to persons and property which arise out of terms and conditions of this Agreement shall be apportioned according to the California law of comparative negligence. 3.The duties and obligations of each Party as set forth in this Section III.B shall survive and continue in full force and effect after the respective termination of the FCSA and this Agreement. C. Retention of Records, Right to Monitor and Audit The authority shall maintain all records for three (3) years after the Study is terminated or completed. The records shall be subject to the examination and/or audit of San Mateo, Water District, East Palo Alto, Menlo Park, and Palo Alto. The Authority shall comply with all program and fiscal reporting requirements set forth under the FCSA and as required by this Agreement. D.Termination of A~reement This Agreement shall automatically terminate one hundred and eighty (180) days after the completion of the Study or the termination of the FCSA, whichever first occurs. 921111-2 6 E.Notices Any notice or other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, (c) by facsimile, or (d) by a commercial courier that provides a receipt, and addressed to the Parties at the addresses stated below, or at such other address as a Party may hereafter notify the other Parties in writing: Authority:San Francisquito Creek Joint Powers Authority 701 Laurel Street Menlo Park, California 94025 Attention: Cynthia D’Agosta, Executive Director Facsimile No.: (650) 328-7935 San Mateo:San Mateo County Flood Control District 555 County Center, 5th Floor Redwood City, CA 94063 Attention: Director of Public Works. Facsimile No.: (650) 361-8220 Water District:Santa Clara Valley Water District 5750 Almaden Expressway San Jose, California 95118-3614 Attention: Stanley Williams, Chief Executive Officer Facsimile No.: (408) 445-1435 East Palo Alto:City of East Palo Alto 2415 University Avenue East Palo Alto, CA 94303 Attention: Alvin James, City Manager Facsimile No: (650) 853-3115 Menlo Park:City of Menlo Park 701 Laurel Street Menlo Park, CA 94025 Attention: David Boesch, City Manager Facsimile No: (650) 328-7935 Palo Alto:City of Palo Alto Department of Public Works 250 Hamilton Avenue Palo Alto, CA 94301 Attention: Glenn Roberts, Director of Public Works Facsimile No: (650) 329-2299 Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery (whether accepted or refused) as evidenced by: a) confirmed 921111-2 7 answerback if by facsimile (provided that if any notice or other communication to be delivered by facsimile is unable to be transmitted because of a problem affecting the receiving party’s facsimile machine, the deadline for receiving such notice or other communication shall be extended through the next business day); b) as shown by the addressee’s return receipt if by certified mail; and c) as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non- business day, then such notice or demand so made shall be deemed effective on the first business day immediately following the day of actual delivery. No communications via electronic mail shall be effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. F.Severability In the event any portion of this Agreement is declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be severed from this Agreement and the remaining parts hereof shall remain in full force and effect as fully as though such invalid, illegal or unenforceable portion had never been part of this Agreement. G. Governing Law and Compliance with Laws The Parties agree that California law shall govern this Agreement. In the performance of this Agreement each Party shall comply with all applicable-laws, ordinances, codes and regulations of the federal, state, and applicable local government. H. Venue In the event that suit shall be brought by any Party, the Parties agree that venue shall be exclusively vested in the state courts of either the County of Santa Clara or the County of San Mateo, or when appropriate, in the United States Court, for the Northern District of California, in either the San Francisco or San Jose branch. I.Assignability and Subcontracting A Party shall not assign this Agreement or any portion thereof to a third party or subcontract with a third party to provide services required under this Agreement without the prior written consent of the other Parties or except as approved by the Board of Directors of Authority. J.Ownership of Materials All reports, documents, or other materials developed or discovered by any Party or any other person engaged directly or indirectly by any Party to perform the services required hereunder shall be and remain the mutual property of all Parties without restriction or limitation upon their use. K. Entire Agreement This Agreement constitutes the entire agreement between all the Parties with respect to this subject matter and supersedes all prior offers and negotiations, oral and written. This 921111-2 8 Agreement may not be amended or modified in any respect whatsoever except by an instrument in writing signed by authorized representatives of all the Parties. L.Counterparts This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument. [This Remaining Space Intentionally Left Blank," Signatures Begin On The Next Page] 921111-2 9 IN WITNESS WHEREOF, the Authority, San Mateo, Water District, East Palo Alto, Menlo Park, and Palo Alto have duly executed this Agreement as of the date and year first above written. Authority: APPROVED AS TO FORM: General Counsel SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY, a California joint powers authority By: Name: Its: Date: 921111-2 10 APPROVED AS TO FORM:SAN MATEO COUNTY FLOOD CONTROL DISTRICT County Counsel By: Jerry Hill President, Board of Supervisors Date: 921111-2 11 APPROVED AS TO FORM:SANTA CLARA VALLEY WATER DISTRICT District Counsel By: Stanley M. Williams Chief Executive Officer Date: 921111-2 12 APPROVED AS TO FORM:CITY OF EAST PALO ALTO City Attorney By: Date: 921111-2 13 APPROVED AS TO FORM:CITY OF MENLO PARK City Attorney By: Date: David Boesch City Manager 921111-2 14 APPROVED AS TO FORM:CITY OF PALO ALTO Senior Assistant City Attorney By: Frank Benest City Manager Date: 921111-2 15 EXHIBIT A AGREEMENT BETWEEN THE DEPARTMENT OF THE ARMY AND THE SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY FOR THE SAN FRANCISQUITO CREEK THIS AGREEMENT is entered into this day, of, 20 , by and between the Department of the Army (hereinafter the "Government"), represented by the District Engineer executing this Agreement, and the San Francisquito Creek Joint Powers Authority (hereinafter the "Sponsor"), WlTNESSETH, that WHEREAS, the U.S. House of Representatives Committee on Transportation and Infrastructure has requested the Secretary of the Army, in accordance with Section 4 of the Flood Control Act of 1941, P.L. 77-228, 55 Stat. 638 (July 24, 1941), to conduct a study of the Guadalupe River and -Tributaries, California, to determine whether flood damage reduction, environmental restoration and protection, storm water retention, water conservation and supply, recreation and other allied purposes are advisable in the interest of the San Fransciquito Creek Watershed, including San Francisquito Creek, Santa Clara and San Mateo Counties, California, pursuant to Resolution, San Francisquito Creek Watershed, California, Docket 2649, May 22, 2002; WHEREAS, the U.S. House of Representatives Committee on Public Works and Transportation is authorized to direct commission of this feasibility study by resolution pursuant to the Rivers and Harbors Act of 1913, 33 U.S.C. § 542 (2005); WHEREAS, the U.S. Army Corps of Engineers has conducted a reconnaissance study of San Francisquito Creek in the interest of flood damage reduction, environmental restoration and protection, storm water retention, water conservation and supply, recreation and other allied purposes pursuant to this authority, and has determined that further study in the nature of a "Feasibility Phase Study" (hereinafter the "Study") is required to fulfill the intent of the study authority and to assess the extent of the Federal interest in participating in a solution to the identified problem; and WHEREAS, Section 105 of the Water Resources Development Act of 1986 (Public Law 99-662, as amended) specifies the cost sharing requirements applicable to the Study; WHEREAS, the Sponsor has the authority and capability to furnish the cooperation hereinafter set forth and is willing to participate in study cost sharing and financing in accordance with the terms of this Agreement; and WHEREAS, the Sponsor and the Government understand that entering into this Agreement in no way obligates either party to implement a project and that whether the Government supports a project authorization and budgets it for implementation depends upon, among other things, the outcome of the Study and whether the proposed solution is consistent with the Economic and Environmental Principles and Guidelines for Water and Related Land Resources Implementation Studies and with the budget priorities of the Administration; NOW THEREFORE, the parties agree as follows: ARTICLE I - DEFINITIONS For the purposes of this Agreement: A. The term "Study Costs" shall mean all disbursements by the Government pursuant to this Agreement, from Federal appropriations or from funds made available to the Government by the Sponsor, and all negotiated costs of work performed by the Sponsor pursuant to this Agreement. Study Costs shall include, but not be limited to: labor charges; direct costs; overhead expenses; supervision and administration costs; the costs of participation in Study Management and Coordination in accordance with Article IV of this Agreement; the costs of contracts with third parties, including termination or suspension charges; and any termination or suspension costs (ordinarily defined as those costs necessary to terminate ongoing contracts or obligations and to properly safeguard the work already accomplished) associated with this Agreement. B. The term "estimated Study Costs" shall mean the estimated cost of performing the Study as of the effective date of this Agreement, as specified in Article III.A. of this Agreement. C. The term "excess Study Costs" shall mean Study Costs that exceed the estimated Study Costs and that do not result from mutual agreement of the parties, a change in Federal law that increases the cost of the Study, or a change in the scope of the Study requested by the Sponsor. D. The term "study period" shall mean the time period for conducting the Study, commencing with the release to the U.S. Army Corps of Engineers San Francisco District of initial Federal feasibility funds following the execution of this Agreement and ending when the Assistant Secretary of the Army (Civil Works) submits the feasibility report to the Office of Management and Budget (OMB) for review for consistency with the policies and programs of the President. E. The term "PMP" shall mean the Project Management Plan, which is attached to this Agreement and which shall not be considered binding on either party and is subject to change by the Government, in consultation with the Sponsor. F. The term "negotiated costs" shall mean the costs of in-kind services to be provided by the Sponsor in accordance with the PMP. G. The term "fiscal year" shall mean one fiscal year of the Government. The Government fiscal year begins on October 1 and ends on September 30. ARTICLE II - OBLIGATIONS OF PARTIES A. The Government, using funds and in-kind services provided by the Sponsor and funds appropriated by the Congress of the United States, shall expeditiously prosecute and complete the Study, in accordance with the provisions of this Agreement and Federal laws, regulations, and policies. 2 B. In accordance with this Article and Article III.A., III.B. and III.C. of this Agreement, the Sponsor shall contribute cash and in-kind services equal to fifty (50) percent of Study Costs other than excess Study Costs. The Sponsor may, consistent with applicable law and regulations, contribute up to 50 percent of Study Costs through the provision of in-kind services. The in- kind services to be provided by the Sponsor, the estimated negotiated costs for those services, and the estimated schedule under which those services are to be provided are specified in the PMP. Negotiated costs shall be subject to an audit by the Government to determine reasonableness, allocability, and allowability. C. The Sponsor shall pay a fifty (50) percent share of excess Study Costs in accordance with Article III.D. of this Agreement. D. The Sponsor understands that the schedule ofworkmay require the Sponsor to provide cash or in-kind services at a rate that may result in the Sponsor temporarily diverging from the obligations concerning cash and in-kind services specified in paragraph B. of this Article. Such temporary divergences shall be identified in the quarterly reports provided for in Article III.A. of this Agreement and shall not alter the obligations concerning costs and services specified in paragraph B. of this Article or the obligations concerning payment specified in Article III of this Agreement. E. If, upon the award of any contract or the performance of any in-house work for the Study by the Government or the Sponsor, cumulative financial obligations of the Government and the Sponsor would result in excess Study Costs, the Government and the Sponsor agree to defer award of that and all subsequent contracts, and performance of that and all subsequent in-house work, for the Study until the Government and the Sponsor agree to proceed. Should the Government and the sponsor require time to arrive at a decision, the Agreement will be suspended in accordance with Article X., for a period of not to exceed six months. In the event the Government and the sponsor have not reached an agreement to proceed by the end of their 6 month period, the Agreement may be subject to termination in accordance with Article X. F. No Federal funds may be used to meet the Sponsor’s share of Study Costs unless the Federal granting agency verifies in writing that the expenditure of such funds is expressly authorized by statute. G. The award and management of any contract with a third party in furtherance of this Agreement which obligates Federal appropriations shall be exclusively within the control of the Government. The award and management of any contract by the Sponsor with a third party in furtherance of this Agreement which obligates funds of the Sponsor and does not obligate Federal appropriations shall be exclusively within the control of the Sponsor, but shall be subject to applicable Federal laws and regulations. H. The Sponsor shall be responsible for the total cost of developing a response plan for addressing any hazardous substances regulated under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, Pub. L. No. 96-510, 94 Stat. 2767, (codified at 42 U.S.C. Sections 9601-9675), as amended, existing in, on, or under any lands, easements or rights-of-way that the Government determines to be required for the construction, operation, and maintenance of the project. Such costs shall not be included in total study costs. ARTICLE II1 - METHOD OF PAYMENT A. The Government shall maintain current records of contributions provided by the parties, current projections of Study Costs, current projections of each party’s share of Study Costs, and current projections of the amount of Study Costs that will result in excess Study Costs. At least quarterly, the Government shall provide the Sponsor a report setting forth this information. As of the effective date of this Agreement, estimated Study Costs are $7,463,100 and the Sponsor’s share of estimated Study Costs is $3,731,550. In order to meet the Sponsor’s cash payment requirements for its share of estimated Study Costs, the Sponsor must provide a cash contribution currently estimated to be $3,731,550. The dollar amounts set forth in this Article are based upon the Government’s best estimates, which reflect the scope of the study described in the PMP, projected costs, price-level changes, and anticipated inflation. Such cost estimates are subject to adjustment by the Government and are not to be construed as the total financial responsibilities of the Government and the Sponsor. B. The Sponsor shall provide its cash contribution required under Article II.B. of this Agreement in accordance with the following provisions: 1. For purposes of budget planning, the Government shall notify the Sponsor by September 1 of each year of the estimated funds that will be required from the Sponsor to meet the Sponsor’s share of Study Costs for the upcoming fiscal year. 2. No later than 60 calendar days prior to the scheduled date for the Government’s issuance of the solicitation for the first contract for the Study or for the Government’s anticipated first significant in-house expenditure for the Study, the Government shall notify the Sponsor in writing of the funds the Government determines to be required from the Sponsor to-meet its required share of Study Costs for the first fiscal year of the Study. No later 30 calendar days thereafter, the Sponsor shall verify to the satisfaction of the Government that the Sponsor has deposited the required funds in an escrow or other account acceptable to the Government, with interest accruing to the Sponsor. 3. For the second and subsequent fiscal years of the Study, the Government shall, no later than 60 calendar days prior to the beginning of the fiscal year, notify the Sponsor in writing of the funds the Government determines to be required from the Sponsor to meet its required share of Study Costs for that fiscal year, taking into account any temporary divergences identified under Article II.D of this Agreement. No later than 30 calendar days prior to the beginning of the fiscal year, the Sponsor shall make the full amount of the required funds available to the Government through the funding mechanism specified in paragraph B.2. of this Article. 4. The Government shall draw from the escrow or other account provided by the Sponsor such sums as the Government deems necessary to cover the Sponsor’s share of contractual and in-house fiscal obligations attributable to the Study as they are incurred. 5. In the event the Government determines that the Sponsor must provide additional funds to meet its share of Study Costs, the Government shall so notify the Sponsor in writing. No later than 60 calendar days after receipt of such notice, the Sponsor shall make the full amount of the additional required funds available through the funding mechanism specified in paragraph B.2. of this Article. 4 C. Within ninety (90) days after the conclusion of the Study Period or termination of this Agreement, the Government shall conduct a final accounting of Study Costs, including disbursements by the Government of Federal funds, cash contributions by the Sponsor, the amount of any excess Study Costs, and credits for the negotiated costs of the Sponsor, and shall furnish the Sponsor with the results of this accounting. Within thirty (30) days thereafter, the Government, subject to the availability of funds, shall reimburse the Sponsor for the excess, if any, of cash contributions and credits given over its required share of Study Costs, other than excess Study Costs, or the Sponsor shall provide the Government any cash contributions required for the Sponsor to meet its required share of Study Costs other than excess Study Costs. D. The Sponsor shall provide its cash contribution for excess Study Costs as required under Article II.C. of this Agreement by delivering a check payable to "FAO, USAED, SAN FRANCISCO" to the District Engineer as follows: 1. After the project that is the subject of this Study has been authorized for construction, no later than the date on which a Project Cooperation Agreement is entered into for the project; or 2. In the event the project that is the subject of this Study is not authorized for construction by a date that is no later than 5 years of the date of the final report of the Chief of Engineers concerning the project, or by a date that is no later than 2 years after the date of the termination of the study, the Sponsor shall pay its share of excess costs on that date (5 years after the date of the Chief of Engineers or 2 year after the date of the termination of the study). ARTICLE IV - STUDY MANAGEMENT AND COORDINATION A. To provide for consistent and effective communication, the Sponsor and the Government shall appoint named senior representatives to an Executive Committee. The Executive Committee shall include from the government, the District Engineer, Deputy District Engineer for Project Management, and the Chief, Planning/Engineering Division, and from the Sponsor, the Director of the San Francisquito Creek Joint Powers Committee, the Public Works Director of the San Mateo County Flood Control District, and the Lower Peninsula Watershed Manager of the Santa Clara Valley Water District. Thereafter, the Executive Committee shall meet regularly until the end of the Study Period. B. Until the end of the Study Period, the Executive Committee shall generally oversee the Study consistently with the PMP. C. The Executive Committee may make recommendations that it deems warranted to the District Engineer on matters that it oversees, including suggestions to avoid potential sources of dispute. The Government in good faith shall consider such recommendations. The Government has the discretion to accept, reject, or modify the Executive Committee’s recommendations. D. The Executive Committee shall appoint representatives to serve on a Study Management Team. The Study Management Team shall keep the Executive Committee informed of the progress of the Study and of significant pending issues and actions, and shall prepare periodic reports on the progress of all work items identified in the PMP. E. The costs of participation in the Executive Committee (including the cost to serve on the Study Management Team) shall be included in total project costs and cost shared in accordance with the provisions of this Agreement. ARTICLE V - DISPUTES As a condition precedent to a party bringing any suit for breach of this Agreement, that party must first notify the other party in writing of the nature of the purported breach and seek in good faith to resolve the dispute through negotiation. If the parties cannot resolve the dispute through negotiation, they may agree to a mutually acceptable method of non-binding alternative dispute resolution with a qualified third party acceptable to both parties. The parties shall each pay 50 percent of any costs for the services provided by such a third party as such costs are incurred. Such costs shall not be included in Study Costs. The existence of a dispute shall not excuse the parties from performance pursuant tO this Agreement. ARTICLE VI - MAINTENANCE OF RECORDS A. Within 60 days of the effective date of this Agreement~ the Government and the Sponsor shall develop procedures for keeping books, records, documents, and other evidence pertaining to costs gnd expenses incurred pursuant to this Agreement to the extent and in such detail as will properly reflect total Study Costs. These procedures shall incorporate, and apply as appropriate, the standards for financial management systems set forth in the Uniform Administrative Requirements for Grants and Cooperative Agreements to state and local governments at 32 C.F.R. Section 33.20. The Government and the Sponsor shall maintain such books, records, documents, and other evidence in accordance with these procedures for a minimum of three years after completion of the Study and resolution of all relevant claims arising therefrom. To the extent permitted under applicable Federal laws and regulations, the Government and the Sponsor shall each allow the other to inspect such books, documents, records, and other evidence. B. In accordance with 31 U.S.C. Section 7503, the Government may conduct audits in addition to any audit that the Sponsor is required to conduct under the Single Audit Act of 1984, 31 U.S.C. Sections 7501-7507. Any such Government audits shall be conducted in accordance with Government Auditing Standards and the cost principles in OMB Circular No. A-87 and other applicable cost principles and regulations. The costs of Government audits shall be included in total Study Costs and shared in accordance with the provisions of this Agreement. ARTICLE VII - RELATIONSHIP OF PARTIES The Government and the Sponsor act in independent capacities in the performance of their respective rights and obligations under this Agreement, and neither is to be considered the officer, agent, or employee of the other. ARTICLE VIII - OFFICIALS NOT TO BENEFIT No member of or delegate to the Congress, nor any resident commissioner, shall be admitted to any share or part of this Agreement, or to any benefit that may arise therefrom. 6 ARTICLE IX - FEDERAL AND STATE LAWS In the exercise of the Sponsor’s rights and obligations under this Agreement, the Sponsor agrees to comply with all applicable Federal and State laws and regulations, including Section 601 of Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and Department of Defense Directive 5500.11 issued pursuant thereto and published in 32 C.F.R. Part 195, as well as Army Regulations 600-7, entitled "Nondiscrimination on the Basis of Handicap in Programs and Activities Assisted or Conducted by the Department of the Army". ARTICLE X - TERMINATION OR SUSPENSION A. This Agreement shall terminate at the conclusion of the Study Period, and neither the Government nor the Sponsor shall have any further obligations hereunder, except as provided in Article III.C.; provided, that prior to such time and upon thirty (30) days written notice, either party may terminate or suspend this Agreement. In addition, the Government shall terminate this Agreement immediately upon any failure of the parties to agree to extend the study under Article II.E. of this agreement, or upon the failure of the sponsor to fulfill its obligation under Article III. of this Agreement. In the event that either party elects to terminate this Agreement, both parties shall conclude their activities relating to the Study and proceed to a final accounting in accordance with Article III.C. and III.D. of this Agreement. Upon termination of this Agreement, all data and information generated as part of the Study shall be made available to both parties. B. Any termination of this Agreement shall not relieve the parties of liability for any obligations previously incurred, including the costs of closing out or transferring any existing contracts. 7 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, which shall become effective upon.the date it is signed by the District Engineer for the U.S. Army Corps of Engineers, San Francisco District. DEPAR~ARMY Lieutenant Colonel, Corps of Engineers District Engineer San Francisco District SAN FRANCIS~QJ.;t~EEK JOINT AUTH.# Ty ) POWERS G~eg Zlotnick " -- Chairperson 8 EXHIBIT B Agreement for Funding a Feasibility Study for San Francisquito Creek Among the San Francisquito Creek Joint Powers Authority, the San Mateo County Flood Control District and the Santa Clara Valley Water District This Agreement ("Agreement") is made and entered into as of ., 2005, by and among the SAN FRANCISQUITO CREEK JOINT POWERS AUTHORITY, a California joint powers authority ("Authority"), the SAN MATEO COUNTY FLOOD CONTROL DISTRICT; a special district of the State of California ("San Mateo"), and the SANTA CLARA VALLEY WATER DISTRICT, a special district of the State of California ("Santa Clara"), collectively referred to as Parties, or individually as Party. RECITALS A. San Francisquito Creek has a history of flooding the communities in and around East Palo Alto, Menlo Park and Palo Alto. The latest and the most damaging flood occurred in 1998. B. Following the flood of 1998, the cities of East Palo Alto, Menlo Park and Palo Alto along with the San Mateo County Flood Control District and the Santa Clara Valley Water District formed the San Francisquito Creek Joint Powers Authority on May 18, 1999. These entities are full members of the Authority. The Authority was authorized to represent its member agencies as the sponsor for a U.S. Corps of Engineers’ ("Corps") flood control project on May 23, 2002. C. The Corps, working with the Authority, which is considered the local sponsor, has completed a reconnaissance study for San Francisquito Creek. The reconnaissance study results indicated a Federal Interest in developing a flood control project for San Francisquito Creek. Therefore, the Corps plans to progress to the feasibility study (the "Study") phase ofthe San Francisquito Creek Flood Damage Reduction and Ecosystem Project (the "Project") which requires a cost sharing agreement with a local sponsor. D. The Authority is proposing to enter into a Feasibility Cost Share Agreement (FCSA) with the U.S. Department of the Army, San Francisco District of the Corps for a flood control project feasibility study of San Francisquito Creek. The Corps, pursuant to the FCSA, has agreed to initiate a project to evaluate flood protection within the San Francisquito Creek Watershed in Santa Clara and San Mateo Counties. E. The FCSA requires the Authority, as the project sponsor, to contribute to the Corps, in cash or in-kind services, fifty percent (50%) of the cost of the Corps’ evaluation of flood control protection as the local share of the Study Costs as defined in the FCSA (the "Study Costs"). F. San Mateo and Santa Clara, on behalf of themselves and the other members of the Authority within their respective jurisdictions, on July 23,200 l, agreed to provide up to $1.5 million each as the local share to fund the Study Costs and the Authority Costs. 856737vl G. The Parties understand that there will be an implementation agreement between all members of the JPA that will identify roles and responsibilities for the members during the feasibility phase of the Project (the "Implementation Agreement"). NOW, THEREFORE, in consideration of the foregoing recitals, and the covenants and conditions in the sections contained herein below, the parties agree as follows: AGREEMENT 1.Funding Payment and Amount San Mateo and Santa Clara agree to contribute up to One Million Five Hundred Thousand Dollars ($1,500,000.00) each to fund the Authority’s contribution to the Study Costs. In connection with the Study Costs, San Mateo and Santa Clara shall each deposit into an escrow account as described in Section 2 of this Agreement, the amount requested, within twenty (20) days of receiving a request for payment from the Authority. Authority will make requests for payment in accordance with estimated costs provided by the Corps to meet the sponsor’s share of Corps’ costs for the succeeding fiscal year. Requests for payment from San Mateo and Santa Clara shall be in equal amounts and at the same time. Requests for payments, however, shall not be issued until an escrow account has been established as described in Section 2. The amount, method and timing of any credit for any approved in-kind services provided by either San Mateo or Santa Clara shall be as provided for in the Implementation Agreement that will be entered into after the FCSA is approved and executed by the Authority and the Corps. 2.Escrow Account The Authority shall establish an independent interest bearing escrow account to receive the cash contributions required for Study Costs. The escrow account shall be segregated from any Authority accounts. Escrow instructions for the escrow account must be approved by both San Mateo and Santa Clara before the escrow account is established. Any escrow account fees or charges shall be deducted equally from the cash contribution amount deposited by San Mateo and Santa Clara The escrow account shall b~ overseen by the Authority subject to disbursement as herein provided. Interest shall accrue and be held for the benefit of San Mateo and Santa Clara and shall be paid annually to San Mateo and Santa Clara. 3.Disbursement of Funds. The Authority shall review all requests for payment under the FCSA submitted by the Corps. Upon determining that a request for payment or portion of a request for payment is deemed appropriate and justified by Authority’s Executive Director, Authority shall promptly issue escrow instructions to disburse funds from the escrow account to the payee. The Authority shall not disburse funds from the escrow account except in accordance with this Section. 856737vl 2 The Authority shall provide semi-annual reports to the participating JPA members of receipts and expenditures made to and from the escrow account. 4.Management of FCSA and Study. The Authority, in its sole discretion, shall be responsible for the performance of the Authority’s obligations under the FCSA related to conducting and overseeing the Study. San Mateo and Santa Clara shall have no rights or obligations under the FCSA to conduct or oversee the Study, except as provided in this Agreement or as may be provided in the Implementation Agreement. San Mateo and Santa Clara are members of the Authority’s project management team that will consult with and provide advice to the Executive Director on the implementation of the FCSA. Mutual Hold Harmless. A.The Authority shall defend, hold harmless and indemnify San Mateo and Santa Clara, their officers, directors and employees from any and all claims for injuries or damages which arise out of the terms and conditions of this Agreement and which result from the intentional or unintentional misconduct, negligent acts or omissions of Authority, its officers, directors and/or employees. B.San Mateo shall defend, hold harmless, and indemnify Santa Clara and the Authority, its officers, directors and employees from any and all claims for injuries or damages to persons and!or property which arise out of the terms and conditions of this Agreement and which result from the intentional or unintentional misconduct, negligent acts or omissions of San Mateo, their officers, directors and/or employees. C.Santa Clara shall defend, hold harmless, and indemnify San Mateo and the Authority, its officers, directors and employees from any and all claims for injuries or damage to persons and/or property which arise out of the terms and conditions of this Agreement and which result from the intentional or unintentional misconduct, negligent acts or omissions of Santa Clara, their officers, directors and/or employees. D. In the event of concurrent intentional or unintentional misconduct, negligent acts or omissions by San Mateo, Santa Claraand the Authority (or each of their respective officers, directors and/or employees), then the liability for any and all claims for injuries or damages to persons and/or property which arise out of terms and conditions of this Agreement shall be apportioned according to the California law of comparative negligence. E. The duties and obligations of this Section 5 shall survive and continue in full force and effect after the termination of the FCSA and this Agreement. 6.Retention of Records, Right to Monitor and Audit The Authority shall maintain all records for three (3) years after the Study is terminated or completed. The records shall be subject to the examination and/or audit of San Mateo and Santa Clara. Each year on January 2, or on a date mutually agreed to by the Parties and prior to termination and upon termination, the Authority shall submit to San Mateo and Santa Clara a 856737vl 3 statement of activities and balances for the escrow account to each party. The Authority shall comply with all program and fiscal reporting requirements set forth under the FCSA and as required by this Agreement. 7.Termination of Agreement. This Agreement shall automatically terminate one hundred and eighty (180) days after the completion of the Study or termination of the FCSA. 8.Refund of Undisbursed Funds. Undisbursed funds and interest shall be returned to San Mateo and Santa Clara within ninety (90) days of the completion of.the Study or the termination of the FCSA and payment of all financial obligations of the Authority to the Corps under the FCSA. All undisbursed funds in the escrow account, including any interest earned thereon, shall be divided equally between San Mateo and Santa Clara. 9.Notices. Any notice or other communication required or permitted to be given hereunder shall not be effective unless it is given in writing and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt requested, (c) by facsimile, or (d) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and addressed to the parties at the addresses stated below, or at such other address as either, party may hereafter notify the other parties in writing: Authority:San Francisquito Creek Joint Powers Authority 701 Laurel Street Menlo Park, California 94025 Attention: Cynthia D’Agosta, Executive Director Facsimile No.: (650) 328-7935 San Mateo:San Mateo County Flood Control District 555 County Center, 5th Floor Redwood City, CA 94063 Attention: Director of Public Works Facsimile No.: (650) 361-8220 Santa Clara:Santa Clara Valley Water District 5750 Almaden Expressway San Jose, California 95118-3614 Attention: Stanley Williams, Chief Executive Officer Facsimile No.: (408) 445-1435 Service of any such notice or other communications so made shall be deemed effective on the day of actual delivery (whether accepted or refused) as evidenced by: a) confirmed answerback if by facsimile (provided that if any notice or other communication to be delivered 856737vl 4 by facsimile is unable to be transmitted because of a problem affecting the receiving party’s facsimile machine, the deadline for receiving such notice or other communication shall be extended through the next business day), b) as shown by the addressee’s return receipt if by certified mail, and c) as confirmed by the courier service if by courier; provided, however, that if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non- business day, then such notice or demand so made shall be deemed effective on the first business day immediately following the day of actual delivery. No communications via electronic mail shall be effective to give any notice, request, direction, demand, consent, waiver, approval or other communications hereunder. 10. Severabili _ty. In the event any portion of this Agreement is declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be severed from this Agreement and the remaining parts hereof shall remain in full force and effect as fully as though such invalid, illegal or unenforceable portion had never been part of this Agreement. 11. Governing Law and Compliance with Laws The parties agree that California law shall govern this Agreement. In the performance of this Agreement each party shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and applicable local government. 12. Venue In the event that suit shall be brought by any party to this contract, the parties agree that venue shall be exclusively vested in the state courts of either the County of Santa Clara, or the County of San Mateo or where otherwise appropriate, exclusively in the United States Court, Northern District of California, in either Redwood City or San Jose, California. 13. Assignability_ and Subcontracting. Parties shall not assign this Agreement or any portion thereof to a third party or subcontract with a third party to provide services required under this Agreement without the prior written consent of the other parties. Notwithstanding, Authority may contract with an accounting firm or an escrow company to fulfill its obligations under Section 2. 14. Ownership of Materials All reports, documents, or other materials developed or discovered by any Party or any other person engaged directly or indirectly by any Party to perform the services required hereunder shall be and remain the mutual property of all Parties without restriction or limitation upon their use. 15. Entire Agreement This Agreement constitutes the entire agreement between the Authority, San Mateo and 856737vl 5 Santa Clara with respect to the subject matter hereof and supersedes all prior offers and negotiations, oral and written. This Agreement may not be amended or modified in any respect whatsoever except by an instrument in writing signed by authorized representatives of the Authority, San Mateo and Santa Clara. 16. Further Actions. The Authority, San Mateo and Santa Clara agree to execute all instruments and documents, and to take all actions, as may be reasonably required to consummate the transaction contemplated by this Agreement. This agreement shall be in full force and effect only upon execution of the FCSA by the Authority. 17. Counterparts. This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument. [This Remaining Space Intentionally Left Blank; Signatures Begin On The Next Page] 856737vl 6 IN WITNESS WHEREOF, the Authority, San Mateo and Santa Clara have executed this Funding Agreement as of the date and year first above written. Authority: APPRO3/~ED AS TO FORM: General Cc~ - - SAN FRANCIS~T_~.O CREEK JOINT POWERS AUTH?~r~’fa ~Calif~nia j oint powers authority By: "~"~[% h ~ Name: ~ ~. ~~ Its: V~ ~- ~~ APPROVED AS TO FORM: Ge~/eral Counsel SAN MATEO COUNTY FLOOD CONTROL DISTRICT By: Richard Gordon President, Board of Supervisors Date: TO FORM: :t Couns~ SANTA CLARA VALLEY WATER CONTROL DISTRICT Stanle) IVi.’wfl]iams Chief l~ecutive Officer Date: ATTEST: /Board of Directors 856737vl 7