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1972-0330_STATE WATER RESOURCE CONTROL BOARD, CALIF_ContractC-06-0606 Project No. MWAYMUM STATE OF CALIFORNIA GRANT FOR CLEAN WATER This contract made this 30th day of March , 1972, between the State of California, acting by and through the State Water Resources Control Board, hereinafter referred to as the "State Board" and the CITY OF SAN JUAN CAPISTRANO duly organized, existing and acting pursuant to the laws of the State of California, hereinafter referred to as the "Municipality"; WITNESSETH WHEREAS, the Clean Water Bond Law of 1970 (Chapter 13, Division 7 of the Water Code) authorizes the State Board to enter into contracts with municipalities to aid in the construction of eligible projects and for reclamation of water, and WHEREAS, "eligible project" means a project for the construction of treatment works which is all of the following: 1, eligible for federal assistance pursuant to Section 8 of the Federal Water Pollution Control Act (33 U.S.C. 1151 et seq.) and acts amendatory thereof; 2. necessary to prevent water pollution; and 3, certified by the State Board as entitled to priority over other treatment works, and which complies with applicable water quality standards, policies and plans, and WHEREAS, the Municipality has made application for a federal grant for construction of an eligible project and said application has been approved by the State Board acting by and through its Division of Water Quality, hereinafter referred to as the "Division", and WHEREAS, the Division has found that the project is eligible for federal assistance, necessary to prevent water pollution, entitled to priority over other treatment works, and complies with applicable water quality standards, policies and plans, and WHEREAS, the Federal Water Pollution Control Act requires that the State agree to pay not less than 25% of the eligible project cost in order for the project to qualify for the maximum federal grant available; NOW, THEREFORE, the parties agree as follows: 1. The eligible project cost is $2,192,900 2. Subject to full execution of the federal document entitled Offer and Acceptance of Federal Grant for Sewage Treatment Works applicable to this project, the State Board agreees��o grant to the Municipality $5 to be disbursed in progress payments when the project is 25, 50, 75, and 100 percent complete. Requests for progress payments shall be accompanied by evidence satisfactory to the Division of the progress of construc- tion. Payments shall be made only after approval by the Division and approval by the Environmental Protection Agency. 3. In the event that actual construction costs are less than estimated in the Munici•ality's application for a federal grant, the eligible project cost and the state grant shall be reduced proportionately. 4. Municipality shall maintain accounts and records prescribed by sound and acceptable accounting practice, state and federal law, and applicable policies and guidelines. Said accounts and records shall at all times be available upon demand to the State Board and its duly authorized agent or agents for inspection and reproduction. Municipality shall comply with assurances given to the Environmental Protection Agency which are contained in the document entitled Offer and Acceptance of Federal Grant for Sewage Treatment Works, a copy of which is attached hereto, marked Exhibit A, and made a part hereof, and further the municipality agrees that the State Board shall be entitled to all the rights and privileges of the Environmental Protection Agency pursuant to said assurances. 6. Municipality shall award project construction not the date of execution of the State Board and shall to construct the project. -2- contracts necessary for later than 90 days from this grant contract by proceed expeditiously 0 7. Municipality shall implement a revenue program in accordance with Section 2142, Subchapter 7, Chapter 3, Title 23, California Administrative Code. 8. Municipality shall commence operation of the project on completion thereof, and shall operate and maintain such works and prepare a comprehensive operation and maintenance manual in accordance with Section 2143, Subchapter 7 and Subchapter 14, both of Chapter 3, Title 23, California Administrative Code and with applicable provisions of law. 9. Municipality shall undertake all reasonable efforts to secure a federal grant for the eligible project cost. 10. Municipality shall provide for payment and shall timely pay all expenses connected with construction of the eligible project. 11. Municipality shall indemnify, defend and save harm- less the State of California and the State Board, and the officers, agents and employees of each against and from any and all claims, demands, damages, losses, costs, expenses, or liability accruing or resulting to any and all contracts, subcontractors, materialmen, laborers, employees, and any other person, firm, or corporation furnishing or supplying work services, materials, or supplies in connection with the design, construction, operation, repair or maintenance of the project or of any of its works or facilities and from any and all claims, demands, damages, losses, costs, expenses or liability accruing or resulting to any person, firm or corporation, as a result of or incident to, either in whole or in part, whether directly or indirectly, the design, construction, operation, repair, maintenance, existence, or failure of the project or any of its works or facilities. 12. Municipality shall comply with the special conditions attached hereto, marked Exhibit B, and made a part hereof. 13. This contract may be amended by mutual agreement of the parties. 14. All requests by the Municipality for increases in the federal and state grants shall be submitted to the Division and receive approval of the Division prior to being submitted to the Environmental Protection Agency. -3- IN WITNESS WHEREOF, the parties hereto have executed this contract as of the day and year first above written. STATE OF CALIFORNIA STATE WATER RESOURCES CONTROL BOARD CITY OF SAN JUAN CAPISTRANO Municipality -4- • E}(HI BIT A • ASSURANCES The Applicant hereby gives assurance to the Commissioner of the Federal water Pollution Control Administration: A. That actual construction work will be performed by the lump sum (fixed price) or unit price contract method, that adequate methods of obtaining competitive bidding will be employed prior to awarding the construction contract, and that the award of the contract will be made to the responsible bidder submitting the lowest acceptable bid; B. That the project will not be advertised or placed on the market for bidding until the final plans and specifications have been approved by the Commissioner and the appropriate State agency, and the Applicant has been so notified; C. That the construction contract will require the contractor to furnish performance and payment bonds, the amount of which shall each be in an amount not less than fifty percentum (50%) of the contract price, and to maintain during the life of the contract adequate fire, and extended coverage, workmen's compensation, public liability and property damage insurance; D. That any change or changes in the contract which make any major alteration in the work required by the plans and specifications, or which raise the cost of the project above the latest estimate approved by the Commissioner will be submitted to the Commissioner for prior approval; E. That the construction of the project, including the letting of contracts in connection therewith, shall conform to the applicable requirements of State, territorial and local laws and ordinances; F. That the construction contract will provide that the representatives of the Federal Water Pollution Control Administration and the State will have access to the work wherever it is in preparation or progress and that the contractor will provide proper facilities for such access and inspection; G. That the Applicant will provide and maintain competent and adequate engineering supervision and inspection at the project to insure that the construction conforms with the approved plans and specifications; H. That adequate accounting and fiscal records will be maintained which fully disclose the amount, receipt, and disposition of the grant assistance provided, the total cost of the project in connection with which the grant has been offered, the amount and identification of that portion of the cost of the project supplied from other sources, and such other records as the Commissioner may prescribe to facilitate an effective audit; I. That all funds granted pursuant to the Federal Water Pollution Control Act shall be expended solely for carrying out the approved project; J. That the Commissioner and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the grantee that are pertinent to grants received under the Act, and the grantee shall submit to the Commissioner or the Comptroller General of the United States such documents and information as they may require in connection with the project; K. That the construction contract will require the contractor to comply with the regulations of the Secretary of Labor made pursuant to the Davis -Bacon Act of March 3, 1931, as amended (40 U.S.C. 276a through 276a-5), the Anti -Kickback Act of June 13, 1934, (40 U.S.C. 276c), and the Contract work Hours Standards Act of August 13, 1962, (40 U.S.C. 327-330), and any amendments or modifications thereto, to cause appropriate provisions to be inserted in subcontracts to insure compliance therewith by all sub- contractors subject thereto, and to be responsible for the submission of statements required of subcontractors thereunder, except as the Secretary of Labor may specifically provide for reasonable limitation, variations, tolerances, and exemptions from the requirements thereof; L. That the Applicant will demonstrate to the satisfaction of the Commissioner his ability to pay the remaining cost of the project; M. That the Applicant will demonstrate to the satisfaction of the Commissioner that he has or will have a fee simple or such other estate or interest in the site of the project, including necessary easements and rights-of-way, as the Commissioner finds sufficient to assure undisturbed use and possession for the purposes of construction and operation for the estimated life of the project; N. That the declarations, assurances, representations and statements made by the Applicant in the application, and all documents, amendments and communications filed with the Federal Water Pollution Control Administration by the Applicant in support of its request for a grant, will be fulfilled; O. That the applicant will permit the Administration or its authorized agents to have access to the project and the records pertaining to its operation at any reasonable time following completion of construction for the purpose of inspecting the operation and maintenance of the project; P. The Applicant agrees to construct the project or cause it to be constructed to final completion in accordance with the application and plans and specifications approved by the Commissioner. NOTE: Federal Water Pollution Control Administration means the Environmental Protection Agency and Commissioner means Administrator. Project No. C-06-0606 EXHIBIT B SPECIAL CONDITIONS a. The Municipality shall participate in and implement the Basin plan developed for the San Diego Basin as adopted by the Regional Board and approved by the State Board. b. The Municipality shall develop and operate the waste treatment facilities system as a coordinated regional system sized to meet reasonable foreseeable regional needs and shall provide service to existing and future participating agencies on a fair and equitable basis. c. The Municipality agrees that in the event federal law is changed to permit a lower state grant that this contract will be modified accordingly provided that any decrease in the amount of the state grant is offset by an equal increase in the federal grant.