HomeMy WebLinkAbout2013-05-28; Municipal Water District; 770; Approve Water Management Agreement OlivenhainCARLSBAD MUNICIPAL WATER DISTRICT -AGENDA BILL
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AB# APPROVE INTEGRATED REGIONAL WATER
MANAGEMENT PROGRAM AGREEMENT
BETWEEN OLIVENHAIN MUNICIPAL WATER
DISTRICT AND LOCAL PROJECT PARTICIPANTS
DEPT.DIRECTOR 1
MTG. 05 "2 8-13
APPROVE INTEGRATED REGIONAL WATER
MANAGEMENT PROGRAM AGREEMENT
BETWEEN OLIVENHAIN MUNICIPAL WATER
DISTRICT AND LOCAL PROJECT PARTICIPANTS
GEN. COUNSEL V ^^'^^
DEPT. trriL
APPROVE INTEGRATED REGIONAL WATER
MANAGEMENT PROGRAM AGREEMENT
BETWEEN OLIVENHAIN MUNICIPAL WATER
DISTRICT AND LOCAL PROJECT PARTICIPANTS CITY MGR. ^
RECOMMENDED ACTION:
Adopt Resolution No. ^A70 approving the Agreement for the Integrated Regional Water
Management Program between Olivenhain Municipal Water District and Local Project Participants.
ITEM EXPLANATION:
In developing grant funding opportunities for Carlsbad Municipal Water District's (CMWD) Phase III
Recycled Water project, staff entered into discussions with nine north San Diego County agencies
(listed below) pursuing development of their own respective recycled water project.
Olivenhain Municipal Water District
Rincon Del Diablo Municipal Water District
Leucadia Wastewater District
Santa Fe Irrigation District
San Elijo Joint Powers Authority
Valiecitos Water District
City of Oceanside
City of Escondido
Vista Irrigation District
In June 2010, the CMWD entered into an agreement with the nine partner agencies above to retain the
engineering consultant, RMC, to develop a comprehensive report to maximize the use of recycled
water referred to as the North San Diego County Regional Recycled Water Project (NSDCRRWP).
The CMWD Board adopted Resolution No. 1409 authorizing an application to obtain a Proposition 84
grant for the Phase III Recycled Water Project where up to a 75 percent total cost share grant is
available from the State of California for planning, engineering, environmental, and design efforts. In
August 2010, Olivenhain Municipal Water District (OMWD), on behalf of all the partner agencies
submitted for consideration several projects to the Regional Water Management Group for the San
Diego region's Round 1 Proposition 84 Integrated Resources Water Management (IRWM) grant
application to the Department of Water Resources. Two of the projects submitted by OMWD were
selected for inclusion in the San Diego IRWM:
• The North San Diego County Cooperative Demineralization Project
• The NSDCRRWP, a partnership with ten North County cities, water, and wastewater agencies, with
OMWD serving as the lead agency. Total grant is $1,455,000 which will be distributed evenly between
the partner agencies.
DEPARTMENT CONTACT: Williann Plu/nmer 760-602-2768 bill.plummer@carlsbadca.gov
FOR SECRETARY USE.
BOARD ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED • REPORT RECEIVED •
The Round 1 Proposition 84 IRWM grant was approved and an agreement was executed on December
12, 2012, officially granting $7.9 million to the San Diego IRWMP. The San Diego County Water
Authority (SDCWA) is the grantee; however, it does not directly administer individual projects
contained within the IRWMP. Thus, before grant funding may be distributed for each individual project,
SDCWA will enter into an agreement with each project's lead agency or "local project sponsor."
In the capacity of local project sponsor for the NSDCRRWP, OMWD is required to act on SDCWA's
behalf for the purposes of project management, oversight, compliance, operations, and maintenance.
OMWD is also required to act on SDCWA's behalf in the fulfillment of SDCWA's responsibilities as
specifically identified in the grant agreement with the California Department of Water Resources.
An agreement to be signed between OMWD and each NSDCRRWP partner agency (or "local project
participant") is required to ensure the performance of each agency in allowing OMWD to fulfill the
terms of the local project sponsor agreement. To ensure its ability to perform according to the terms of
the local project sponsor agreement, OMWD must require each of the local project participants to act
on its behalf in the fulfillment of its responsibilities as specifically identified in the local project sponsor
agreement with SDCWA (refer to Exhibit 4 for the agreement).
Additionally, the local project participant agreement (refer to Exhibit 3) outlines the method through
which the grant award will be divided among the local project participants. The grant funds are
intended to fund in whole the project management. Programmatic Environmental Impact Report,
public outreach plan, and feasibility study for the project, as well as the administrative expenses by
SDCWA and OMWD as permitted by SDCWA's grant agreement with the Department of Water
Resources. Funds that remain will be distributed evenly among the local project participants (the 10
agencies) to be applied to their individual subprojects. Each of the 10 agencies will receive
approximately $90,000 to apply to their individual subprojects.
Under a separate authorization by the partner agencies , OMWD submitted the construction phase of
the NSDCRRWP for consideration in the region's Round 2 Proposition 84 IRWM grant application, and
was notified on November 30, 2012 that the project was recommended by the Regional Water
Management Group to receive a grant award of $3,452,000. The regional IRWMP in which this
recommendation is included was submitted to Department of Water Resources in March 2013 for their
consideration to award the grant.
FISCAL IMPACT:
Approval of the local project sponsor agreement will garner the NSDCRRWP $1,455,000 in Round 1
Proposition 84 IRWM grant funds. The award will be applied as follows:
• Project management as well as a Programmatic Environmental Impact Report, public outreach
plan, and feasibility study will be completed for the NSDCRRWP.
• Funds that remain will be distributed evenly among local project participants (the 10 agencies) to
be applied to their individual subprojects. Estimates suggest that each agency, including CMWD,
will receive $90,000. CMWD will use these funds as reimbursement for work performed after
September 30, 2008 for construction of an 8-inch diameter pipeline in Palmer Way and a 6-inch
diameter pipeline in Impala Drive.
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• Staff is requesting that the Board approve the local project sponsor agreement, accept the grant
funds, and appropriate the grant funds for use in the Recycled Water Phase III project.
ENVIRONMENTAL IMPACT:
An environmental impact assessment was conducted for the Phase III Recycled Water Project, and a
Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program was approved by the
Board through Resolution No. 1455, on November 27, 2012. Furthermore, pursuant to Public Resources
Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it
has no potential to cause either a direct physical change in the environment, or a reasonably
foreseeable indirect physical change in the environment, and therefore does not require environmental
review.
EXHIBITS:
1. Resolution No. 1470 of the Board of Directors of Carlsbad Municipal Water District (CMWD)
approving the Agreement for the Integrated Regional Water Management Program between
Olivenhain Municipal Water District and Local Project Participants.
2. Agreement for the Integrated Regional Water Management Program between Olivenhain Municipal
Water District and Local Project Participants.
3. Agreement for the Integrated Regional Water Management Program between San Diego County
Water Authority and Olivenhain Municipal Water District, Project No. 84-2-80003
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RESOLUTION NO. 1470
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A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD
3 MUNICIPAL WATER DISTRICT (CMWD), APPROVING THE
AGREEMENT FOR THE INTEGRATED REGIONAL WATER
MANAGEMENT PROGRAM BETWEEN OLIVENHAIN MUNICIPAL
5 WATER DISTRICT AND LOCAL PROJECT PARTICIPANTS.
Recycled Water project; and
WHEREAS, for funding purposes, CMWD's Phase III Recycled Water Project was combined
with projects proposed by nine other agencies (or Local Project Participants) in north San Diego
6 WHEREAS, CMWD is pursuing funding programs for development of the Phase III
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County into one project referred to as the North San Diego County Regional Recycled Water
12 Project (NSDCRRWP); and
13 WHEREAS, in August 2010, Olivenhain Municipal Water District (OMWD), on behalf of all
Local Project Participants submitted for consideration several projects to the Regional Water
Management Group for the San Diego region's Round 1 Proposition 84 Integrated Resources
Water Management (IRWM) grant application, and the NSDCRRWP was selected for inclusion in
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-13 the San Diego IRWM; and
19 WHEREAS, a Round 1 Proposition 84 IRWM grant agreement was executed on
2^ December 12, 2012, officially granting $7.9 million to the San Diego IRWMP, and the San Diego
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25 WHEREAS, the SDCWA does not directly administer individual projects contained within
26 the IRWMP; and
2^ WHEREAS, before grant funding may be distributed for each individual project, the
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SDCWA will enter into an agreement with the NSDCRRWP "local project sponsor"; and ^
County Water Authority (SDCWA) is the grantee; and
WHEREAS, the NSDCRRWP was included as part of the $7.9 million grant with a grant
share of $1,445,000; and
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2 WHEREAS, the Olivenhain Municipal Water District is the local project sponsor for the
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NSDCRRWP, and OMWD is required to act on SDCWA's behalf for the purposes of project
management, oversight, compliance, operations, and maintenance; and
WHEREAS, OMWD is also required to act on SDCWA's behalf in the fulfillment of SDCWA's
responsibilities as specifically identified in the grant agreement with the California Department of
8 Water Resources; and
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WHEREAS, an agreement to be signed between OMWD and each NSDCRRWP partner
agency (or "local project participant") is required to ensure the performance of each agency in
allowing OMWD to fulfill the terms of the local project sponsor agreement, and to ensure its
ability to perform according to the terms of the local project sponsor agreement, OMWD must
14 require each of the local project participants to act on its behalf in the fulfillment of its
15 responsibilities as specifically identified in the local project sponsor agreement with SDCWA; and
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WHEREAS, the local project participant agreement outlines the method through which
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the grant award will be divided among agencies, and the grant funds are intended to fund in
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whole the project management. Programmatic Environmental Impact Report, public outreach
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20 plan, and feasibility study for the project, as well as the administrative expenses by SDCWA, and
21 OMWD as permitted by SDCWA's grant agreement with the Department of Water Resources;
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27 NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of the
28 City of Carlsbad, California, as follows that: ^
WHEREAS, funds that remain will be distributed evenly among project partners to be
applied to individual subprojects, and each agency will receive approximately $90,000 to apply to
their individual subprojects.
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1. The above recitations are true and correct.
2. That the Agreement for the Integrated Regional Water Management Program
between Olivenhain Municipal Water District and Local Project Participants is hereby
approved, and the Executive Manager or his designee is authorized to execute the
agreement on behalf of the CMWD.
3. That the Board accepts and authorizes the receipt of the grant funds.
4. That the Administrative Services Director is authorized to appropriate the grant
funds, currently estimated at $90,000, when received for use towards the Recycled
Water Phase III project.
PASSED, APPROVED AND ADOPTED at a Special Meeting ofthe Board of Directors ofthe
Carlsbad Municipal Water District of the City of Carlsbad on the 28*' day of May 2013, by the
following vote to wit:
AYES: Board Members Hall, Packard, Wood, Blackburn, Douglas.
NOES: None.
ABSENT: None.
ATTEST:
B^>ili^;^M^.l^N, Secretary
^^^^
AGREEMENT for the INTEGRATED REGIONAL WATER MANAGEMENT
PROGRAM BETWEEN OLIVENHAIN MUNICIPAL WATER DISTRICT AND
LOCAL PROJECT PARTICIPANTS
PROJECT NO. 84-2-80003
This Agreement between Olivenhain Municipal Water District, a Municipal Water District
organized and operating pursuant to Water Code Sections 71000 et seq. and Local Project Sponsor
(hereinafter OMWD); and Carlsbad Municipal Water District (Carlsbad), the City of Escondido
(Escondido), Leucadia Wastewater District (Leucadia), the City of Oceanside (Oceanside), Rincon del
Diablo Municipal Water District (Rincon), San Elijo Joint Powers Authority (SEJPA), Santa Fe Irrigation
District (Santa Fe), Valiecitos Water District (Valiecitos), and Vista Irrigation District (Vista) (collectively
Local Project Participants, or LPP), sets forth the understanding of OMWD and the Local Project
Participants for partnership and uses of a grant award from the State of California Department of Water
Resources (DWR) via local grant administrator, the San Diego County Water Authority (SDCWA).
RECITALS
1. In November 2006, California voters approved the Safe Drinking Water, Water Quality and
Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84), which authorized
$5,388 billion in general obligation bonds to fund safe drinking water, water quality and supply, flood
control, waterway and natural resource protection, water pollution and contamination control, state
and local park improvements, public access to natural resources, and water conservation efforts.
2. On March 25, 2009, SDCWA, the City of San Diego and the County of San Diego entered into a
Memorandum of Understanding (MOU) that established the San Diego Regional Water Management
Group (RWMG), and the parties' roles with regard to the San Diego Integrated Regional Water
Management (IRWM) Plan and the division of responsibilities for administration of IRWM grant monies.
This MOU was amended on November 10, 2009. This MOU replaced the June 13, 2005 MOU as
amended, among City of San Diego, County of San Diego, and SDCWA, for Fiscal Years 2005-2009 for the
IRWM Grant Program.
3. In 2010, OMWD and the Local Project Participants came together in order to encourage the
beneficial reuse of wastewater across jurisdictional boundaries. The North San Diego County Regional
Recycled Water Project (NSDCRRWP) is a project included in the San Diego IRWM Plan. Participants in
the project are OMWD and the Local Project Participants.
4. In June of 2010, LPPs retained the services of RMC Water and Environment (RMC) in order to
analyze all ofthe individual facilities and subprojects of each agency and create a Regional Recycled
Water Facilities Plan. Additionally, LPPs (excluding Santa Fe and Escondido) entered into an agreement
with The Furman Group in order to support legislator outreach efforts for the pursuit of up to $50
million in federal funding.
5. Effective December 12, 2012, SDCWA, acting on behalf ofthe San Diego RWMG, entered into
a $7.9 million grant agreement with DWR. The grant will assist in financing projects associated with the
San Diego IRWM Plan. The San Diego RWMG has committed a total of $1,455 million in funds to the
NSDCRRWP provided via the grant agreement. The grant agreement is attached as Exhibit B.
6. On April 17, 2013, OMWD entered into the Agreement for the Integrated Regional Water
Management Program between San Diego County Water Authority and Olivenhain Municipal Water
District, Project Number 84-2-80003 (Local Project Sponsor agreement)(attached hereto as Exhibit A). In
the capacity of Local Project Sponsor, OMWD is required to act on SDCWA's behalf for matters
pertaining to the NSDCRRWP for the purposes of project management, oversight, compliance,
operations, and maintenance. OMWD is also required to act on SDCWA's behalf in the fulfillment of
SDCWA's responsibilities as specifically identified in SDCWA's agreement with DWR.
The Recitals are incorporated herein and, the Parties do agree as follows:
COVENANTS
1. intent. Parties agree that the intent of this Agreement and the terms established herein are
to facilitate the compliance of OMWD, in its role as Local Project Sponsor, with all terms and conditions
established in the Local Project Sponsor agreement. Additionally, it is the intent of this Agreement that
grant funds received via the grant agreement less permissible project administration fees to be allocated
to OMWD and SDCWA will be divided equally among OMWD and LPPs, and that costs associated with
compliance with the Local Project Sponsor agreement incurred prior or subsequent to the execution of
this Agreement shall be borne equally by OMWD and LPPs.
2. Definitions. The following words and terms, unless otherwise defined, shall mean:
a. Local Project Participant (LPP): Sponsor of subprojects funded as part of the IRWM
grant from DWR that are not serving as Local Project Sponsor. For purposes of this Agreement,
LPPs are Carlsbad, Escondido, Leucadia, Oceanside, Rincon, SEJPA, Santa Fe, Valiecitos, and
Vista.
i. Marine Corps Base Camp Pendleton (Camp Pendleton) is not an LPP. Camp
Pendleton, as a federal military installation, is governed by different legal and fiscal
authorities than the LPPs. However, it is the intention of OMWD and the LPPs to
cooperatively share information and resources to facilitate the integration of Camp
Pendleton's recycled water infrastructure and tertiary treated effluent into the regional
recycled water treatment and distribution systems of northern San Diego County. Camp
Pendleton will serve as a non-voting member ofthe partnership which will not seek or
accept non-federal funds through this Agreement, but will instead coordinate, and
support—where appropriate—the efforts ofthe LPPs to obtain funding and develop
recycled water infrastructure and capabilities in northern San Diego County.
b. Grant agreement: Grant agreement 4600009707 between SDCWA and DWR, effective
December 12, 2012, for the disbursement of $7.9 million in grant funds.
c. Local Project Sponsor agreement: Agreement for the Integrated Regional Water
Management Program between San Diego County Water Authority and Olivenhain Municipal
Water District, Project Number 84-2-80003, dated April 17, 2013, requiring OMWD to fulfill
certain responsibilities and duties pertaining to the NSDCRRWP in order to ensure SDCWA's
performance with the terms of the grant agreement.
d. Project or NSDCRRWP: The North San Diego County Regional Recycled Water Project,
a project listed in the grant agreement for which OMWD serves as the Local Project Sponsor.
Subprojects are individual elements ofthe NSDCRRWP on which work will typically be carried
out by one individual LPP.
3. Term of Agreement. The term of this Agreement begins on April 17, 2013 and terminates
May 31, 2017 or when all parties' obligations under this Agreement have been fully satisfied.
4. Grant amount. The maximum amount payable by DWR to SDCWA for the NSDCRRWP shall
not exceed $1,455,000. As LPS, OMWD will facilitate the distribution of grant funds to LPPs according to
the terms of this Agreement.
5. Project costs. The reasonable total cost of all subprojects ofthe NSDCRRWP is estimated to
be $2,970,000. LPPs shall fund the difference, if any, between the estimates of their respective
subproject's cost and the portion of the grant amount to which each LPP is entitled specified in
paragraph 9. Each LPP is only responsible for funding the difference for its subproject. Total cost share
for the NSDCRRWP is estimated to be $1,515,000. LPP funding match is at least 25 percent of the total
project costs, unless a disadvantaged community project waiver is granted. Costs eligible to be
considered part of a funding match may include cost share performed after September 30, 2008. Costs
paid for by another state funding source cannot be considered as a funding match.
6. Budget contingency.
a. OMWD and LPPs shall have no obligation to perform under this Agreement if DWR
does not provide funding for the IRWM program. LPPs acknowledge that if funding for any fiscal
year is reduced or deleted by DWR, DWR at its option may either (1) cancel the grant agreement
with no liability occurring to DWR, SDCWA, and OMWD, or (2) amend the grant agreement to
reflect the reduced amount of funding. If DWR amends the grant agreement, SDCWA would
offer to amend or terminate the Local Project Sponsor agreement to reflect the reduced funding
by DWR. Following amendment or termination ofthe Local Project Sponsor agreement, OMWD
would offer to amend or terminate this Agreement to reflect termination or amendment ofthe
Local Project Sponsor agreement.
b. If funding is deleted by DWR, OMWD shall have no obligation to continue to serve as
Local Project Sponsor and this Agreement shall be of no force and effect. In this event, LPPs shall
not be obligated to perform under the Agreement.
7. Local Project Participant responsibilities.
a. LPP shall be solely responsible for work and for persons or entities engaged in work,
including, but not limited to, subcontractors, suppliers, and all providers of services under this
Agreement. LPP shall fulfill its obligations in a manner that is consistent with the grant
agreement and the IRWM program.
b. LPP shall be responsible for all disputes arising out of its contracts for work including,
but not limited to, bid disputes and payment disputes with its contractors and consultants or
other entities. DWR, SDCWA, or OMWD will not mediate disputes between LPP and any other
entity regarding performance of work.
c. LPP shall be responsible for oversight, compliance, operations, and maintenance of
NSDCRRWP subprojects. LPP or its representatives shall perform regular inspections of any
construction work in progress. LPP shall promptly perform, or cause to be performed, all IRWM
program work as described in the final plans and specifications for the subprojects identified in
Exhibit A.
d. LPP is solely responsible for design, construction, and operation and maintenance of
subprojects identified in Exhibit A. Review or approval of plans, specifications, bid documents, or
other construction documents by DWR, SDCWA, or OMWD is solely for the purpose of proper
administration of grant funds and shall not relieve or limit responsibilities of LPP with regard to
its contractual obligations.
e. LPP shall faithfully and expeditiously perform or cause to be performed all project
work as described in and in accordance with this Agreement, the grant agreement, and the
IRWM program. LPP shall comply with all ofthe terms and conditions of this Agreement and
applicable California Public Resources Code (PRC) requirements.
f. LPP shall be responsible for funding an equivalent portion of any post-award
administrative costs, not directly related to subprojects, that are incurred in order to maintain
compliance with the Local Project Sponsor agreement, including but not limited to post-
completion audits conducted at the discretion of SDCWA and/or DWR.
8. Basic Conditions. OMWD shall have no obligation to disburse money for a project under this
Agreement unless LPP has satisfied the following conditions in accordance with the Safe Drinking Water,
Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006.
a. If requested, LPP shall demonstrate the availability of sufficient funds to complete the
project by submitting the most recent 3 years of audited financial statements.
b. LPP shall comply with PRC §75102 to notify the California Native American tribe
(which is on the contact list maintained by the Native American Heritage Commission) of
subproject construction if that tribe has traditional lands located within the area ofthe
subproject, as applicable.
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c. For groundwater management and recharge projects and for projects with potential
groundwater impacts, the LPS shall demonstrate compliance with the groundwater compliance
options set forth on page 15 ofthe IRWM Program Guidelines, dated August 2010.
d. For the term of this Agreement, LPP must submit timely Quarterly Progress Reports as
required by Section 24 of this Agreement.
9. Eligible costs.
a. Grant funds will be applied to address 100% of the costs of a Programmatic
Environmental Impact Report for the NSDCRRWP, a feasibility study for the NSDCRRWP, and a
Public Outreach Plan specific to the NSDCRRWP.
i. OMWD will contract with RMC to perform work in paragraph 9(a) on behalf of
LPPs. OMWD will seek grant reimbursement from DWR via SDCWA for costs associated with the
RMC contract. RMC scope of work is attached as Exhibit C.
b. OMWD and each LPP are entitled to an equivalent portion of the grant funds less
costs due RMC for the Programmatic Environmental Impact Report, feasibility study, and Public
Outreach Plan, and less permissible project administration fees to be allocated to OMWD and
SDCWA. These entitlements are contingent upon the fulfillment by OMWD and each LPP of
equivalent portions ofthe minimum local match required by the grant agreement.
c. Eligible costs include the reasonable and necessary costs of engineering, design, land
and easement acquisition, preparation of environmental documentation, and environmental
mitigation. Each LPP had the opportunity to designate their portion ofthe remaining grant funds
to costs associated with engineering/design/environmental or construction/implementation.
Only Carlsbad, Rincon, and SEJPA, by having indicated their intentions to apply grant funds to
construction costs, may apply their funds to project implementation.
d. Only work performed after August 16,2011 shall be eligible for reimbursement. Costs
incurred after May 31, 2017 and before August 16, 2011 are not eligible for reimbursement.
However, such costs may be considered, at DWR's discretion, as part of LPP's funding match, if
such costs were otherwise reimbursable.
e. Costs that are not reimbursable with grant funds include, but are not limited to, the
following:
• Costs incurred before August 16, 2011.
• Operation and maintenance costs, including post construction performance and
monitoring costs.
• Purchase of equipment not an integral part of a subproject.
• Establishing a reserve fund.
• Purchase of water supply.
• Monitoring and assessment costs for efforts required after project construction
is complete.
• Replacement of existing funding sources for ongoing programs.
• Travel and per diem costs.
• 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 subproject, as set forth and detailed by
engineering and feasibility studies, or land purchased before August 16, 2011.
• Payment of principal or interest of existing indebtedness or any interest
payments for the subproject unless the debt is incurred after August 16, 2011,
and DWR agrees in writing to the eligibility ofthe 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 project costs.
10. Invoices. LPP shall submit invoices to OMWD as eligible costs are incurred, which shall in
turn send the invoices to SDCWA. Invoices submitted by LPP to OMWD shall include the following
information:
a. Costs incurred for work performed in implementing the IRWM program or subproject
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 subproject during the period identified in the particular invoice for the
construction, operation, or maintenance of a subproject.
c. Any appropriate receipts and reports for costs incurred.
d. Invoices shall be submitted on forms provided by OMWD and shall meet the following
format requirements:
i. Must contain the submission date of the invoice, the time period covered by
the invoice, and the total amount due.
ii. Must be itemized and organized based on the categories specified in Exhibit
A. 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 equals the total
amount claimed).
iii. Sufficient evidence (i.e., receipts, copies of checks, time sheets, or financial
system reports) must be provided for all costs included in the invoice.
iv. Shall clearlv delineate those costs claimed for reimbursement from DWR's
grant amount, paragraph 4 above, and those costs that represent LPP's costs, as
applicable, paragraph 5 above.
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V. Original signature and date of LPP's Project Manager.
vi. Must include the grant agreement number.
e. Submit the original and 3 copies ofthe invoice to the following address:
Cathy Collier, Project Accountant
Olivenhain Municipal Water District
1966 Olivenhain Road
Encinitas, CA 92024
Failure to use the address exactly as provided in this paragraph may result in return ofthe
invoice to LPP.
11. Requirements for disbursement.
a. By May 31, 2017, LPP shall meet all conditions precedent to the disbursement of
money as listed below. Failure by LPP to comply by this date may, at the option of OMWD, result
in termination of this Agreement. For disbursements of funds for each subproject, LPP shall
continue to meet the conditions for disbursement, paragraph 13, "Disbursement by OMWD."
i. LPP shall ensure the availability of sufficient funds to complete the subprojects
identified in Exhibit A.
ii. LPP shall comply with all applicable requirements ofthe California
Environmental Quality Act and the National Environmental Policy Act, where applicable.
If applicable, before construction or implementation begins on a subproject, LPP shall
submit to OMWD copies of environmental documents, including environmental impact
reports, environmental impact statements, negative declarations, mitigation
agreements, and environmental permits that are required.
iii. For the term ofthe Agreement, LPP shall submit timely periodic progress
reports as required by paragraph 24, "Submission of reports."
b. Before disbursement of funds for each subproject, LPP shall submit the following to
OMWD, if applicable:
i. Final plans and specifications certified by a California Registered Civil Engineer.
ii. Documents required by the LPP's subproject under the California
Environmental Quality Act (CEQA).
iii. Documents demonstrating subproject's compliance with all applicable
requirements ofthe National Environmental Policy Act, where applicable (e.g., copies of
any environmental documents, including environmental impact statements. Finding of
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No Significant Impact, mitigation monitoring programs, and environmental permits as
may be required prior to beginning construction/implementation).
ii. 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 23, "Permits, licenses, approvals, and compliance with laws," have been
obtained.
12. Payment to OMWD. OMWD and each LPP will be responsible for an equivalent portion of
the costs pertaining to the Programmatic Environmental Impact Report, feasibility study, and Public
Outreach Plan. Upon incurring costs specific to these studies, OMWD will submit invoices to each LPP for
its share of eligible costs. Each LPP shall remit payment within 30 days. OMWD will submit invoices to
SDCWA for total eligible costs incurred on a quarterly basis pursuant to the Local Project Sponsor
agreement.
13. Disbursement by OMWD. Upon receipt of reimbursement from SDCWA for costs incurred as
described in paragraph 12, "Payment to OMWD," OMWD will distribute grant funds to each agency
equal to the amounts invoiced by each LPP less permissible project administration fees. OMWD and
each LPP are entitled to an equivalent portion ofthe grant funds less costs due RMC and less permissible
project administration fees to OMWD and SDCWA. These grant funds are subject to the conditions
described in the grant agreement and the Local Project Sponsor agreement and must meet all
conditions in this Agreement.
14. Compliance with terms. LPP shall comply with all terms and conditions of the grant
agreement and Local Project Sponsor agreement, as applicable. LPP shall comply with all requirements
imposed upon OMWD under the Local Project Sponsor agreement, as applicable, unless otherwise
specified in this Agreement. OMWD shall possess all rights afforded SDCWA and/or DWR by the Local
Project Sponsor agreement, as applicable, unless otherwise specified in this Agreement.
15. Amendment. All amendments or modification of this Agreement shall be in writing and
signed by the parties. No oral understanding or agreement not incorporated in the Agreement is binding
on the parties.
16. Audits. OMWD reserves the right to conduct an audit of LPP at any time between the
execution of this Agreement and the completion ofthe grant agreement program, with the costs of such
audit to be borne by SDCWA or DWR. Following completion ofthe project, SDCWA and/or DWR may
require OMWD to conduct a final audit or may perform the audit at OMWD's expense. Costs incurred by
OMWD for audits performed up to three years after project completion will be divided evenly among
OMWD and LPPs. For post completion audits initiated by SDCWA, costs of an independent auditor firm
will be borne by SDCWA provided that no misappropriation of funds is discovered as a result of such
audit. Failure or refusal by LPP to comply with this provision shall be considered a breach of this
Agreement, and OMWD, SDCWA, and DWR may take any action to protect their interests.
LPPs shall be subject to the examination and audit ofthe California State Auditor and/or SDCWA
for a period of three years after completion ofthe grant agreement. All records of LPPs and their
subcontractors shall be preserved for at least three years after completion ofthe grant agreement or
through May 31, 2020, whichever is later.
17. Disposition of equipment. LPP shall consult with OMWD on the scope ofthe inventory not
less than 60 days before the submission ofthe final subproject invoice. Not less than 30 days before
submission of its final invoice, LPP shall provide to OMWD a final inventory of equipment purchased
with grant funds. The inventory shall include all items with a current estimated fair market value of
more than $5000 per item. Within 60 days of receipt ofthe inventory, DWR will provide SDCWA with a
list of the items on the inventory to which DWR will take title. All other items shall become the property
of LPP. DWR will arrange for delivery from LPP of items to which it takes title. Cost of transportation, if
any, will be borne by DWR.
18. Independent capacity. In the performance of this Agreement, LPP, its officers, agents,
contractors, volunteers, and employees, shall act in an independent capacity and not as officers,
employees, or agents of DWR, SDCWA, or OWMD.
19. No third party rights. The parties to this Agreement do not intend to create rights in, or
grant remedies to, any third party as a beneficiary of this Agreement, or of any duty, covenant,
obligation or undertaking established herein.
20. Severability of unenforceable provision. If any provision of this Agreement is held invalid or
unenforceable by a court of competent jurisdiction, all other provisions of this Agreement shall be
construed to remain fully valid, enforceable, and binding on the parties.
21. Successors and Assigns. This Agreement and all of its provisions shall apply to and bind the
successors and assigns ofthe parties. No assignment or transfer of this Agreement or any part thereof,
rights hereunder, or interest herein by LPPs shall be valid unless and until it is approved in writing by
DWR and made subject to such reasonable terms and conditions as DWR may impose.
22. Timeliness. Time is ofthe essence in this Agreement.
23. Default provisions.
a. LPP will be in default under this Agreement if any of the following occur:
• Failure to perform any material term of this Agreement;
• Making any false representation or statement;
• Failure to construct, operate, or maintain subprojects in accordance with this
Agreement; or
• Failure to remit unexpended funds.
b. If an event of default occurs, OMWD may do the following:
• Declare that the grant amounts be repaid immediately, 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 LPP;
• Terminate this Agreement; and
• Take any other action that it deems necessary to protect its interests.
24. Permits, licenses, approvals, and compliance with laws. LPP shall ensure all permits,
licenses, and approvals required for performing their obligations under this Agreement are obtained,
and shall comply with all applicable federal, state, and local laws, rules, and regulations, guidelines,
including 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 and requirements for each project described in Exhibit A.
25. Submission of reports. All reports shall be submitted to OMWD. The submittal and approval
of all reports is a requirement for the successful completion of this Agreement. Reports shall be
submitted in both electronic and hard copy forms, shall meet generally accepted professional standards
for technical reporting, and shall be proofread for content and accuracy before submission. LPP shall
promptly provide any additional information requested by OMWD, SDCWA, or DWR for approval of
reports. Reports shall be presented in the formats described in Exhibit A. The submittal and approval of
reports is a requirement for initial and continued disbursement of DWR funds. Submittal of a Project
Completion Report is a requirement for the release of any retention.
• Quarterly Reports: Beginning in the first quarter after signing this Agreement and for the
duration of the grant agreement, LPP shall submit to OMWD a quarterly report that
explains the status of each subproject described in Exhibit A. Reports shall be submitted
by the seventh day of March, June, September, and December for the preceding
quarter.
• Project Completion Reports: Within 45 calendar days of completion of all project tasks,
LPP shall submit to OMWD a Project Completion Report for each subproject as
described included in Exhibit A.
• Project Completion Reports: LPP shall submit a Project Completion Report for its
respective subproject to OMWD within 45 calendar days after the first operational year
of a subproject has elapsed.
• Project Performance Report: LPP must submit an annual project performance report to
OMWD within 20 calendar day of request by OMWD, in accordance with Exhibit A. 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.
26. IRWM Program Performance and Assurances. LPP agrees to promptly perform or cause to
be performed all IRWM Program work as described in the final plans and specifications for its subproject
and implement the subproject in accordance with applicable provisions ofthe law. If OMWD and/or
SDCWA must enforce this provision by legal action, LPP shall pay all costs incurred by OMWD and/or
10
17
SDCWA including, but not limited to, reasonable attorneys' fees, legal expenses, expert fees, and other
costs.
27. Labor compliance. LPP will be required to keep informed of and take all measures necessary
to ensure compliance with applicable California Labor Code requirements, including, but not limited to.
Section 1720 et seq. ofthe California Labor Code regarding public works, limitations on use of volunteer
labor (California Labor Code Section 1720.4), labor compliance programs (California Labor Code Section
1771.5), and payment of prevailing wages for work done and funded pursuant to these guidelines,
including any payments to the Department of Industrial Relations under California Labor Code Section
1771.3. Proof of compliance with this section must be furnished to OMWD upon request.
28. Operation and maintenance of projects.
a. For the useful life ofthe projects and in consideration ofthe grant made by DWR, LPP
shall ensure the commencement and continued operation of the subproject(s), and shall ensure
the subprojects are operated in an efficient and economical manner; shall ensure all repairs,
renewals, and replacements necessary for 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. All operations and
maintenance costs ofthe facilities and structures shall be the responsibility of LPP for its
subproject(s). DWR, SDCWA, or OMWD shall not be liable for any cost of maintenance,
management, or operation. LPP may be excused from operations and maintenance only upon
the written approval of DWR's Project Manager.
b. For purposes of this Agreement, "operation costs" include direct costs incurred for
material and labor needed for operations, utilities, insurance, and similar expenses.
"Maintenance costs" include ordinary repairs and replacements of a recurring nature necessary
for capital assets and basic structures, and the expenditure of funds necessary to replace or
reconstruct capital assets or basic structures. Refusal of LPP to ensure operation and
maintenance ofthe subprojects in accordance with this provision may, at the option of OMWD,
be considered a breach of this Agreement and may be treated as default under paragraph 22.
29. Monitoring requirements. LPP shall ensure that all groundwater subprojects and
subprojects 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 ofthe Water
Code). Subprojects 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
Ambient Monitoring Program carried out by State Water Resources Control Board. Exhibit A provides
guidance on such monitoring requirements.
30. Notification of OMWD. For each subproject, LPP shall promptly notify OMWD in writing of
the following occurrences:
11
a. Events or proposed changes that could affect the scope, budget, or work performed
under this Agreement. LPP agrees that no substantial change in the scope of a subproject will be
undertaken until written notice ofthe proposed change has been provided to OMWD and
OMWD has given written approval of such change.
b. Any public or media event publicizing the accomplishments or results of this
Agreement that provides the opportunity for OMWD, SDCWA, or DWR representatives to attend
and participate. LPP shall notify OMWD at least 21 calendar days before the event.
c. Completion of work on a subproject.
d. Final inspection of a subproject by a Registered Civil Engineer. LPP shall notify DWR,
SDCWA, and OMWD at least 16 calendar days before the inspection and provide DWR, SDCWA,
and OMWD the opportunity to participate in the inspection.
31. Project managers. Any party may change its Project Manager upon written notice to the
other parties.
• DWR's Project Manager shall be the Chief, Division of Integrated Regional Water
Management, Department of Water Resources. DWR's Project Manager shall be DWR'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 DWR grant agreement.
• SDCWA's Project Manager shall be Mark Stadler, Principal Water Resources Specialist.
SDCWA's Project Manager shall be its representative for the administration of this
Agreement and shall have full authority to act on behalf of SDCWA, including authority
to execute all payment requests.
• OMWD's Project Manager, Kimberly Thorner, shall be its representative for the
administration of this Agreement and shall have full authority to act on behalf of OMWD
including authority to execute all payment requests.
32. Notices. All notice, demand, request, consent, or approval that any party desires or is
requested to give to one or more ofthe other parties shall be in writing. Notices may be sent by mail,
courier, electronic mail or any other means of delivery. Any party may, by written notice to the others,
designate a different address that shall be substituted for the one below.
State of California
Department of Water Resources
Division of Integrated Regional Water Management
Attention: Chief, Division, of Integrated Regional Water Management Financial
Assistance Branch
P.O. Box 942836
Sacramento, CA 94236-0001
12
Mark Stadler
Principal Water Resources Specialist
San Diego County Water Authority
4677 Overland Avenue
San Diego, CA 92123
Kimberly Thorner
General Manager
Olivenhain Municipal Water District
1966 Olivenhain Road
Encinitas, CA 92024
Wendy Chambers
Utilities Director
Carlsbad Municipal Water District
5950 El Camino Real
Carlsbad, CA 92008
Chris McKinney
Director of Utilities
City of Escondido
201 North Broadway
Escondido, CA 92025
Paul Bushee
General Manager
Leucadia Wastewater District
1960 La Costa Avenue
Carlsbad, CA 92009
Cari Dale
Water Utilities Director
City of Oceanside
300 North Coast Highway
Oceanside, CA 92054
Bob Gumerman
Interim General Manager
Rincon del Diablo Municipal Water District
1920 North Iris Lane
Escondido, CA 92026
Michael Thornton
General Manager
13
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San Elijo Joint Powers Authority
2695 Manchester Avenue
Cardiff, CA 92007
Michael Bardin
General Manager
Santa Fe Irrigation District
5920 Linea del Cielo
PO Box 409
Rancho Santa Fe, CA 92067-0409
Dennis Lamb
General Manager
Valiecitos Water District
201 Valiecitos de Oro
San Marcos, CA 92069
Roy Coox
General Manager
Vista Irrigation District
1391 Engineer Street
Vista, CA 92081
33. Termination, immediate repayment, interest. The Agreement may be terminated by
written notice at any time before completion ofthe IRWM Program at the option of OMWD, SDCWA, or
DWR if LPP breaches the Agreement, and has been asked to cure the breach within a reasonable time
and fails to do so. If the Agreement is terminated, LPP shall, upon demand, immediately repay to DWR
an amount equal to the amount of grant funds disbursed to LPP. Interest shall accrue on all amounts
due at the State of California's general obligation bond interest rate from the date that notice of
termination is mailed to LPP to the date of full repayment.
34. Indemnity — hold harmless.
a. To the fullest extent permitted by law, LPP shall (1) immediately defend, and (2)
indemnify OMWD, SDCWA, and DWR and their directors, officers, and employees from and
against all liabilities regardless of nature or type arising out of or resulting from LPP's
performance of services under this contract, or any negligent or wrongful act or omission of the
LPP or LPP's officers, employees, agents, or subcontractors. Liabilities subject to the duties to
defend and indemnify include, without limitation all claims, losses, damages, penalties, fines,
and judgments; associated investigation and administrative expenses; defense costs, including
but not limited to reasonable attorneys' fees; court costs; and costs of alternative dispute
resolution. The LPP's obligation to indemnify applies unless it is adjudicated that its liability was
caused by the sole negligence or willful misconduct of an indemnified party. If it is finally
adjudicated that liability is caused by the comparative active negligence or willful misconduct of
14
an indemnified party, the LPP indemnification obligation shall be reduced in proportion to the
established comparative liability ofthe indemnified party.
b. The duty to defend is a separate and distinct obligation from the LPP's duty to
indemnify. The LPP shall be obligated to defend, in all legal, equitable, administrative, or special
proceedings, with counsel approved by OMWD, SDCWA, and DWR, and their directors, officers,
and employees, immediately upon tender to the LPP of the claim in any form or at any stage of
an action or proceeding, whether or not liability is established. An allegation or determination of
comparative active negligence or willful misconduct by an indemnified party does not relieve
the LPP from its separate and distinct obligation to defend OMWD, SDCWA, and DWR. The
obligation to defend extends through final judgment, including exhaustion of any appeals.
c. The review, acceptance or approval of LPP's work or work product by any indemnified
party shall not affect, relieve or reduce the LPP's indemnification or defense obligations. This
section survives completion ofthe services or the termination of this contract. The provisions of
this section are not limited by and do not affect the provisions of this contract relating to
insurance.
35. insurance.
a. The LPP shall procure and maintain during the period of performance of this contract
insurance from insurance companies admitted to do business in the State of California, as set
forth in this section or as additionally required by supplemental condition. The requirements of
this paragraph can also be met by providing the equivalent types and amounts of self-insurance.
These policies shall be primary insurance as to OMWD so that any other coverage held by
OMWD shall not contribute to any loss under LPP's insurance. Coverage may be provided by a
combination of primary and excess insurance policies, provided ali insurers meet the
requirements of this section.
b. All insurance shall cover occurrences during the coverage period.
c. The coverage amount of each policy of insurance shall be as required by OMWD.
i. The following insurance and limits are required for the contract:
Commercial General Liability: Coverage at least as broad as ISO form GC
00 0110 01
Limit per occurrence: $1,000,000
d. The insurance policies shall be endorsed as follows:
i. For the general commercial liability as well as excess or umbrella insurance
covering risks within the scope of that type insurance, OMWD, its directors, officers,
employees and agents are included as additional insureds with regard to liability and
15
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defense of suits or claims arising from the operations, products and activities performed
by or on behalf of the named insured. The LPP's insurance applies separately to each
insured, including insureds added pursuant to this paragraph, against whom claim is
made or suit is brought except with respect to the policy limits of liability. The inclusion
of any person or entity as an insured shall not affect any right which the person or entity
would have as a claimant if not so included. Any failure ofthe named insured to comply
with reporting provisions ofthe policy or breaches or violations of warranties shall not
affect coverage provided to the insureds added pursuant to this paragraph. The
additional insured endorsement shall provide coverage at least as broad as ISO form CG
20 10 10 93.
ii. The LPP's insurance shall be primary. Any other insurance or self-insurance
available to OMWD or persons stated in paragraph (1) shall be in excess of and shall not
contribute to the contractor's insurance.
iii. The insurance shall not be canceled or materially reduced in coverage except
after 30 days prior written notice receipted delivery has been given to OMWD, except
10 days notice shall be allowed for non-payment of premium.
e. Unless otherwise specified, the insurance shall be provided by an acceptable
insurance provider, as determined by OMWD, which satisfies the following minimum
requirements: An insurance carrier admitted to do business in California and maintaining an
agent for process within the State of California. Such insurance carrier shall maintain a current
A.M. Best rating classification of "A-" (A minus) or better and a financial size of $10 million to
$24 million (Class V) or better, or a Lloyds of London program provided by syndicates of Lloyds
of London and other London insurance carriers, providing all participants are qualified to do
business in California and the policy provides for an agent for process in the State of California
and the program assures a financial capability at least equal to the required classification and
size for admitted insurers.
f. Certificates of insurance and endorsements shall be provided by the LPP and approved
by OMWD before execution of the contract. Endorsements may be provided on forms provided
by OMWD, or substantially equivalent forms provided by the insurer. All consultants/
contractors performing the scope of work on behalf ofthe LPP shall name OMWD, SDCWA, and
DWR (including their directors, officers, employees, and agents) as an additional insured on their
Commercial General Liability policy and the policy shall be endorsed with use of an ISO form CG
20 10 10 93 or equivalent.
36. Laws and venue. This Agreement shall be interpreted in accordance with the laws ofthe
State of California. If any action is brought to interpret or enforce any term of this Agreement, the action
shall be brought in a state or federal court in San Diego County.
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12
37. Assignment. A party shall not assign, sublet, or transfer this Agreement or any rights or
interest in this Agreement without the written consent of OMWD, which may be withheld for any
reason.
38. Integration. This Agreement represents the entire understanding ofthe parties as to those
matters contained herein. No prior oral or written understanding should be of any force or effect with
respect to those matters covered hereunder. This Agreement may not be modified or altered except in
writing signed by the parties.
39. Incorporation of standard conditions and grantee commitments. The following exhibits are
attached and made a part of this Agreement by this reference:
Exhibit A - Local Project Sponsor Agreement
Exhibit B - Grant Agreement
Exhibit C - RMC Scope of Work
40. Signatures. The individuals executing this Agreement represent and warrant that they have
the legal capacity and authority to do so on behalf of their respective legal entities.
IN WITNESS WHEREOF, the parties have executed this Agreement as ofthe date below:
17
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DATED: OLIVENHAIN MUNICIPAL WATER DISTRICT
By:
Kimberly Thorner, General Manager
DATED: CARLSBAD MUNICIPAL WATER DISTRICT
By:
John Coates, Executive Director
DATED: CITY OF ESCONDIDO
By:
Chris McKinney, Director of Utilities
DATED: LEUCADIA WASTEWATER DISTRICT
By:
Paul Bushee, General Manager
DATED: CITY OF OCEANSIDE
By:
Cari Dale, Water Utilities Director
DATED: RINCON DEL DIABLO MUNICIPAL WATER DISTRICT
18
2,^
By:
Bob Gumerman, Interim General Manager
DATED: SAN ELIJO JOINT POWERS AUTHORITY
By:
Michael Thornton, General Manager
DATED: SANTA FE IRRIGATION DISTRICT
By:
Michael Bardin, General Manager
DATED: VALLECITOS WATER DISTRICT
By:
Dennis Lamb, General Manager
DATED: VISTA IRRIGATION DISTRICT
By:
Roy Coox, General Manager
19
AGREEMENT
for the
INTEGRATED REGIONAL WATER MANAGEMENT PROGRAM
BETWEEN
SAN DIEGO COUNTY WATER AUTHORITY
AND
OLIVENHAIN MUNICIPAL WATER DISTRICT
PROJECT NO. 84-2-80003
This Agreement between the San Diego County Water Authority, a county water
authority (Water Authority), and the Olivenhain Municipal Water District, a Local
Project Sponsor (LPS), sets forth the understanding of the Water Authority and the LPS
(collectively Parties) for distribution of a grant award from the State of Califomia
Department of Water Resources (State).
Recitals:
1. WHEREAS, On November 2006, Califomia voters approved Proposition 84, the
Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Bond Act to assists in financing projects associated with Integrated
Regional Water Management (IRWM) Plan pursuant to Chapter 8 (commencing
with Section 79560 Division 26.5 ofthe Califomia Water Code (CWC), collectively
referred to as IRWM Program.
2. WHEREAS the Integrated Regional Water Management plan was adopted by MOU
in the San Diego region in June 2005, and re-executed in 2009.
3. WHEREAS, On September 21, 2011 a new MOU was executed among the City of
San Diego, County of San Diego, and Water Authority for Fiscal Years 2009-2013
IRWM Grant Program. The MOU establishes the San Diego Regional Water
Management Group (RWMG), and the Parties' roles regarding the San Diego
IRWM Plan and the division of responsibilities for administration of IRWM grant
monies.
The Recitals are incorporated herein and, the Parties do agree as follows:
1. Definitions:
The following words and terms, unless otherwise defined, shall mean:
a. LPS means Local Project Sponsor. An LPS is a proponent of individual
projects that will be funded as part of the IRWM Program grant from the
State. The role of an LPS could be performed by entities such as the Water
Authority, County of San Diego, City of San Diego, Water Authority
member agency, a municipality, a joint powers authority, a local public
agency, a non-profit 501(c) (3) or a Native American tribe. The LPS for
this Agreement is the Olivenhain Municipal Water District.
91
b. Grant Agreement means the Grant Agreement no. 4600009707 between the
San Diego County Water Authority and the State of Califomia, dated
December 12,2012, for the disbursement of $7.9 million in grant funds.
Project: 2 - San Diego North Regional Recycled Water Project is one of
the projects listed in the Grant Agreement and the project that will be
performed by the LPS under this agreement.
c. LPS Agreement (Agreement): This agreement between the Water Authority
and the Local Project Sponsor for the performance of the project and receipt
of the grant funds allocated for that project.
2. Term of agreement: The term of this Agreement begins on
and terminates on May 31,2017, or when all Parties' obligations under this
Agreement have been fully satisfied. .
3. Grant Amount: The maximum amount payable by State under the Grant
Agreement for this Project shall not exceed $1,455,000.
4. Project costs: The reasonable total cost of the Project is estimated to be
$2,970,000. These costs are summarized in Exhibit C, Summary Budget Table 1.
LPS shall fund the difference, if any, between the estimate of total project cost and
the Grant Amount specified in paragraph 3. The LPS is only responsible for funding
the difference for its project {Funding Match plus Other Cost Share as shown on
Exhibit C, Summary Budget Table 1). LPS cost share for the project funded
through this Agreement is estimated to be $1,515,000. LPS funding match is at
least 51% ofthe total project costs, unless a Disadvantage Community project
waiver is granted. Costs for the funding match may include cost share performed
after September 30, 2008. Costs paid for by another State funding cannot be
considered as a funding match.
5. Budget Contingency: Limit of State Funds. Safe Drinking Water, Water Quality
and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 is
subject to the availability of State funds including any mandates from the
Department of Finance, the Pooled Money Investment Board or any other state
authority. The Water Authority will not make payments of any kind, including
advances or reimbursements, until funding is made available by the State
Treasurer. If the State ceases payment, the Water Authority has no obligation to
make payments for any work done and not reimbursed by the State.
6. LPS responsibilities:
(a) LPS shall perform the scope of work for this project including project
construction and management, oversight, compliance and operations and
maintenance associated with the project. LPS shall also be solely responsible for
work and for persons or entities engaged in work, including, but not limited to,
subcontractors, suppliers, and all providers of services under this Agreement.
7.
LPS shall fulfill its obligations in a manner that is consistent with this
agreement, the Grant Agreement and the IRWM Program.
(b) LPS shall be responsible for all disputes arising out of its contracts for work
including, but not limited to, bid disputes and payment disputes with its
contractors and consultants or other entities. State or Water Authority will not
mediate disputes between LPS and any other entity regarding performance of
work.
(c) LPS shall promptly perform, or cause to be performed, all IRWM Program
work as described in the scope of work for the Project(s) identified in Exhibit A,
Work Plan. LPS shall be responsible for oversight, compliance, and operations
and maintenance of Project(s) identified in the Grant Agreement. LPS or its
representatives shall perform regular inspections of any constmction work in
progress.
(d) LPS is solely responsible for design, construction, and operation and
maintenance of Project(s) identified in Exhibit A. Review or approval of plans,
specifications, bid documents, or other construction documents by State or the
Water Authority is solely for the purpose of proper administration of grant
funds and shall not relieve or limit responsibilities of LPS with regard to its
contractual obligations.
e) LPS shall faithfully and expeditiously perform or cause to be performed all
project work as described in Exhibit A (Work Plan) and in accordance with
Exhibit B Schedule and Exhibit C Budget. LPS shall comply with all ofthe
terms and conditions of this Agreement and applicable Califomia Public
Resources Code (PRC) requirements.
Basic Conditions: Water Authority shall have no obligation to disburse money for
a project under this agreement until LPS has satisfied the following conditions in
accordance with the Safe Drinking Water, Water Quality and Supply, Flood
Control, River and Coastal Protection Bond Act of 2006.
a) LPS shall demonstrate the availability of sufficient funds to complete the
project, as stated in the Grant Award/Commitment Letter, by submitting the
most recent 3 years of audited financial statements.
b) LPS shall comply with PRC §75102 to notify the Califomia Native
American tribe (which is on the contact list maintained by the Native
American Heritage Commission) of Project Construction if that tribe has
traditional lands located within the area ofthe Project.
c) For groundwater management and recharge projects and for projects with
potential groundwater impacts, the LPS shall demonstrate compliance with
the groundwater compliance options set forth on page 15 ofthe IRWM
Program Guidelines, dated August 2010.
d) For the term of this agreement, LPS must submit timely Quarterly Progress
Reports as required by Paragraph 17, "Submission of Reports."
f) LPS shall submit all deliverables as specified in this Paragraph of this
agreement and the Work Plan in Exhibit A.
e) Before beginning construction or implementation activities, LPS shall
submit to the State the following, if applicable:
1) Final plans and specifications certified by a Califomia Registered Civil
Engineer as to compliance for the approved project as listed in Exhibit
A, Work Plan of this LPS Agreement.
2) Documents required by the project under the Califomia Environmental
Quality Act (CEQA). Work that is subject to CEQA and/or
environmental permitting shall not proceed under this agreement until
the following actions are performed:
i. LPS submits all applicable environmental permits as indicated on
the Environmental Information Form submitted to the Water
Authority
ii. Documents that satisfy the CEQA process are received by the
Water Authority and submitted to the State.
iii. LPS receives CEQA compliance review from the State, and
iv. LPS receives written concurrence from the State of Lead
Agency's CEQA document(s) and State notice of verification of
environmental permit submittal. State's concurrence of CEQA
documents is fully discretionary and shall constitute a condition
precedent to any work (ex. construction or implementation
activities) for which it is required. Therefore, the LPS should get
concurrence from the State, through the Water Authority, on
CEQA before beginning any of the work that is subject to CEQA.
Once CEQA documentation has been completed. State will
consider the environmental documents and decide whether to
continue to fund the project or to require changes, alterations or
other mitigation. LPS must also demonstrate that it has complied
with all applicable requirements ofthe National Environmental
Policy Act by submitting copies of any environmental documents,
including environmental impact statements. Finding of No
Significant Impact, mitigation monitoring programs, and
environmental permits as may be required prior to beginning
construction/implementation.
v. If any of the requirements does not apply, LPS shall submit an
explanation in writing to the Water Authority.
3) A monitoring plan as required by Paragraph 21, Project Monitoring
Plan Requirements."
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8. Disbursement by State and Payment by Water Authority: Following the review
of each invoice, the Water Authority will approve invoice and disburse payment
subject to the availability of funds through normal State and Water Authority
processes. Funds will be disbursed by the State and then the Water Authority in
response to each approved invoice in accordance with Exhibit F, Disbursement
Process. All money disbursed by the Water Authority under this Agreement and all
interest eamed by LPS shall be used solely to pay eligible costs. Within forty-five
(45) days of receipt of funds from the State, Water Authority shall disburse the
funds to the LPS. No disbursement shall be required at any time or in any manner,
which is in violation of, or in conflict with, federal or state laws, mles or regulations
or which may require any rebates to the federal govemment or any loss of tax-free
status on state bonds, pursuant to any federal statute or regulation.
9. Eligible Project Cost: Costs as described in Exhibit A (Work Plan) and in
accordance with Exhibit B (Schedule) and Exhibit C (Budget).
(a) Eligible costs include the reasonable and necessary costs of studies,
engineering, design, land and easement acquisition, legal fees, preparation
of environmental documentation, environmental mitigation, monitoring, and
project construction. Only work performed after the date of grant award,
August 16, 2011, shall be eligible for reimbursement.
(b) Reasonable administrative expenses may be included as Project Costs
and will 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 the portion of overhead and
administrative expenses that are directly related to the projects included in
this Agreement in accordance with the generally accepted accounting
practices.
Advanced funds will not be provided. Costs that are not deemed eligible
project costs cannot be counted as cost share. Costs that are not eligible for
reimbursement include but are not limited to:
i. Costs, other than those noted above, incurred prior to the award
date of the Grant.
ii. Operation and maintenance costs, including post constmction
performance and monitoring costs.
iii. Purchase of equipment not an integral part of a project.
iv. Establishing a reserve fund.
v. Purchase of water supply.
vi. Monitoring and assessment costs for efforts required after
project construction is complete.
vii. Replacement of existing ftinding sources for ongoing programs.
viii. Travel and per diem costs.
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ix. Support of existing agency requirements and mandates (e.g.
punitive regulatory agency requirements).
X. 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 the grant award with the
State.
xi. Payment of principal or interest of existing indebtedness or any
interest payments unless the debt is incurred after execution of
this LPS Agreement, the Water Authority and the State agree 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. However, this will only be
allowed as LPS cost share (i.e. Funding Match)
xii. Overhead not directly related to project costs.
10. Method of Payment. After the disbursement requirements in Paragraph 7
"Basic Conditions" are met, the Water Authority will disburse the whole or
portions of the grant amount to the LPS, less any required retention, following
receipt from LPS of an invoice for costs incurred, and timely Quarterly Progress
Reports as required by Paragraph 17, "Submission of Reports." A Progress
Report is required for every invoice submitted.
Invoices submitted by LPS shall include the following information:
a) Costs incurred for work performed in implementing the IRWM project
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 constmction, operation, or maintenance
of a project.
c) Appropriate receipts and reports for all costs incurred.
d) If an LPS can prove financial hardship, the LPS may submit, with Water
Authority's written approval, an unpaid contractor's invoice. A copy of
the contractor's unpaid invoice must be received prior to billing the
Water Authority. Upon receipt of funds (less retention) from the Water
Authority, the LPS must pay the contractor's invoice in full and provide
proof of payment to the Water Authority within 30 days of Water
Authority payment to the LPS.
e) Financial Hardship conditions will be decided on a case by case basis.
In general, if the size and scope of a project is beyond the ability of an
LPS to manage given its limited financial resources and cash flow in
comparison to the anticipated quarterly payment schedule, and with
disregard to financial capability, and the LPS can prove it has the
management and expertise to undertake the project, the Water Authority
may at its discretion opt to pay for vendor expenses in advance ofthe
LPS making payment to the outside vendor. Advance payments will not
be made for LPS in-house costs, including employee salaries and
overhead. The Water Authority may require, at its sole discretion, the
use of an escrow account to ensure the payment is made to the outside
vendor in a timely manner.
f) Invoices shall be submitted on forms provided by the Water Authority
and shall meet the following format requirements:
a. Invoices must contain the date of the invoice, the time period
covered by the invoice, and the total amount due.
b. Invoices must be itemized and organized based on the categories
or tasks specified in the 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).
c. Sufficient evidence (i.e., receipts, copies of checks, time sheets or
financial system reports) must be provided for all costs included in
the invoice.
d. Each invoice shall clearlv delineate those costs claimed for
reimbursement from the State's grant amount, as depicted in
Paragraph 3, "Grant Amount" and those costs that represent LPS'
share of costs, as identified in, in Paragraph 4, "LPS Cost Share."
e. Invoice shall be accompanied by a coversheet that summarizes task
items (a) through (h).
f Original signature and date (in ink) of Grantee's Project Manager.
Payment will be made no more frequently than monthly, in arrears, upon receipt of
an invoice bearing the Grant Agreement number. Submit the original and three (3)
copies ofthe invoice form to the following address:
San Diego County Water Authority
Attention: Loisa Burton
Grant Administrator
4677 Overland Avenue
San Diego, CA 91911
Failure to use the above address may result in the retum of the project invoice.
Invoice may be submitted electronically (i.e. via a Web Tool) as instmcted by the
Grant Administrator.
11. Withholding of Grant Reimbursements by the Water Authority. If the
State or the Water Authority determines that a project is not being implemented
in accordance with the provisions of this Agreement and and/or the Grant
Agreement, or that the LPS has failed to comply with the provisions of this
Agreement, and if LPS does not remedy any such failure to the State or the
Water Authority's satisfaction, the Water Authority may withhold from LPS all
or any portion of the grant amount and take any other action that it deems
necessary to protect its interests. The Water Authority may require the LPS to
immediately repay all or any portion of the disbursed grant amount with
interest, consistent with its determination. The Water Authority may consider
LPS' refusal to repay the requested disbursed grant amount a contract breach
subject to the default provisions in Paragraph 13, "Default Provisions."
If the Water Authority notifies LPS of its decision to withhold the entire grant
amount from LPS pursuant to this Paragraph, this LPS Agreement shall terminate
upon receipt of such notice by LPS and shall no longer be binding on either party.
12. Continuing Eligibility. LPS must meet the following ongoing requirements to
remain eligible to receive State grant funds:
a) For urban water suppliers that receive grant funds govemed by this Grant
Agreement,) compliance with the Urban Water Management Planning Act
(CWC§10610e^ seq.)
b) For groundwater management and recharge projects and for projects with
potential groundwater impacts, the LPS must demonstrate compliance with
the groundwater compliance options set forth on page 15 ofthe IRWM
Program Guidelines, dated August 2010.
13. Default Provisions. Grantee will be in default under this LPS Agreement if any
of the following occur:
a) Breach of this LPS Agreement, or any supplement or amendment to it, or any
other agreement between LPS and the Water Authority evidencing or securing
Grantee' s obligations.
b) Making any false warranty, representation, or statement.
c) Failure to operate or maintain projects.
d) Failure to make any remittance required by this LPS Agreement.
e) Failure to comply with Labor Compliance Program (LCP) requirements.
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f) Failure to meet any ofthe requirements set forth in Paragraph 12, "Continuing
Eligibility."
If an event of default occurs, the Water Authority may do any or all ofthe
following:
g) Declare that the Grant be immediately repaid, with interest, which shall be equal
to State of Califomia general obligation bond interest rate in effect at the time ofthe
default.
h) Terminate any obligation to make future payments to LPS
i) Terminate the LPS Agreement.
j) Take any other action that it deems necessary to protect its interests.
14. Permits, Licenses, Approvals and Legal Obligations. LPS shall be
responsible for ensuring any and all permits, licenses, and approvals required
for performing their obligations under this Agreement are obtained other
applicable federal. State and local laws, mles, and regulations, guidelines, and
requirements for each project described in Exhibit A.
15. Relationship of Parties. The LPS is solely responsible for design, constmction,
and operation and maintenance of its Projects within the San Diego 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 the LPS under this Agreement.
16. LPS Representation. Local Project Sponsor shall comply with all terms,
provisions, conditions, and written commitments of this Agreement, including
all incorporated documents, and to fulfill all assurances, declarations,
representations, and statements made by LPS in the application, documents,
amendments, and communications filed in support of its request for Safe
Drinking Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Bond Act of 2006 financing.
17. 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 Water Authority's
Grant Administrator, and shall be submitted in both electronic and hard copy
forms. If requested, LPS promptly provides any additional information deemed
necessary by the Water Authority and the State for the approval of reports.
Reports shall be presented in the formats described in the applicable portion of
Exhibit E. The timely submittal of reports is a requirement for initial and
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continued disbursement of State funds. Submittal and subsequent approval by
the Water Authority and the State, of a Project Completion Report for each
project is a condition precedent for the release of any funds retained for such
project.
a) Quarterly Progress Reports: LPS shall submit Quarterly Progress Reports
on a regular and consistent basis to meet the State's requirement. Quarterly
Progress Reports shall be submitted electronically fifteen (15) calendar days
after the end of previous quarter (ex: 15* day of March, June, September and
December for the preceding quarter) to the IRWM Project Manager as
specified in Exhibit B. Quarterly Progress Report shall provide a brief
description of the work performed. Grantees activities, milestones achieved,
any accomplishments and any problems encountered in the performance of
the work under this LPS Agreement during the reporting period. It should
also include cost information, including grant and local cost share spent and
reimbursable costs for the period and to date. Issues must be resolved by
the twentieth (20*) day ofthe reporting month (for example: by March 20
ofthe first reporting period of December thru February).
b) Proiect Completion Reports: LPS shall prepare and submit to the Water
Authority a Project Completion Report for its project. LPS shall submit a
Project Completion Report within sixty (60) calendar days of project
completion. The Project Completion Report shall include a description of
actual work done, any changes or amendments to the project, and 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 completion by a registered civil engineer, consistent Standard
Condifion D-15, "Final Inspections and Certification of Registered Civil
Engineer." A DWR "Certification of Project Completion" form will be
provided by the State through the Water Authority.
c) Proiect Performance Reports: Grantee shall submit a Project Performance
Report for each project to State within sixty (60) calendar days after the first
operational year of a project has elapsed. 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.
18. IRWM Program Performance and Assurances: LPS agrees to promptly perform
or cause to be performed all IRWM Program work as described in the final plans and
specifications for each project and implement the project in accordance with
applicable provisions ofthe law. If the Water Authority must enforce this provision
by legal action, LPS shall pay all costs incurred by the Water Authority including,
but not limited to, reasonable attomeys' fees, legal expenses, and other costs.
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19. Labor Compliance: LPS will be required to keep informed of and take all measures
necessary to ensure compliance with applicable Califomia Labor Code requirements,
including, but not limited to, Section 1720 et seq. of the Califomia Labor Code
regarding public works, limitations on use of volunteer labor (Califomia Labor Code
Section 1720.4), labor compliance programs (Califomia Labor Code Section 1771.5)
and payment of prevailing wages for work done and funded pursuant to these
Guidelines, including any payments to the Department of Industrial Relations under
Califomia Labor Code Section 1771.3.
20. Operations and Maintenance of Project: For the useful life of constmction and
implementation projects and in consideration of the Grant made by State, LPS agrees
to ensure or cause to be performed the commencement and continued operation of
the project, and shall ensure or cause the project 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 LPS shall contractually assume
all operations and maintenance costs of the facilities and structures for their
respective project; The Water Authority shall not be liable for any cost of such
maintenance, management, or operation. LPS may be excused from operations and
maintenance only upon the written approval of the San Diego IRWM Program
Manager. For purposes of this LPS Agreement, "useful life" means period during
which an asset, property, or activity is expected to be usable for the purpose it was
acquired or implemented; "operation costs" include direct costs incurred for material
and labor needed for operations, utilities, insurance, and similar expenses, and
"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 stmctures. Refusal of
Grantee to ensure operation and maintenance of the project 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 13, "Default Provisions."
21. Statewide Monitoring Requirement: If it has a groundwater project or if a project
includes groundwater monitoring requirements, LPS shall ensure that the project is
consistent with the Groundwater Quality Monitoring Act of 2001 (Part 2.76
(commencing with Section 10780) of Division 6 of CWC). If the project affects
water quality, it shall include a monitoring component that allows the integration of
data into statewide monitoring efforts, including where applicable, the Surface Water
Ambient Monitoring Program carried out by the State Water Resources Control
Board.
22. Project Monitoring Plan Requirements: The LPS Agreement work plan should
contain activities to develop and submit to State a monitoring plan for its project.
Along with the Attachment 6 Project Performance Measures Tables requirements
outlined on page 21 ofthe Proposition 84 Round 1 Implementation Proposal
Solicitation Package, the Project Monitoring Plan should also include:
a) Baseline conditions.
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b) Brief discussion of monitoring systems to be utilized.
c) Methodology of monitoring.
d) Frequency of monitoring.
e) Location of monitoring points.
A monitoring plan shall be submitted to the Water Authority prior to disbursement
of grant funds for construction or monitoring activities for each project in this LPS
Agreement. See Exhibit G ("Requirements for Data Submittal") for web links and
information regarding other State monitoring and data reporting requirements.
23. Notification of Water Authority: For each project. Grantee shall promptly notify
the Water Authority, in writing, ofthe following items:
a) Events or proposed changes that could affect the scope, budget, or work
performed. Local project sponsor agrees that no substantial change in the scope
of a project will be undertaken until written notice of the proposed change has
been provided to the Water Authority, which it will forward to the State and the
State has given written approval for such change. Substantial changes generally
include changes to the terms/scope of work, schedule, and budget. See Exhibit
H for guidance on Agreement Amendment requirements.
b) Any public or media event publicizing the accomplishments and/or results of
this LPS Agreement and that provide the opportunity for attendance and
participation by State's representatives and the Water Authority. Grantee shall
make such notification at least fourteen (14) calendar days prior to the event.
For the purposes of this paragraph, blog posts, newspaper, radio, and television
interviews not initiated by the LPS shall not be considered to be a public or
media event.
c) Completion of work on a project shall include final inspection of a project by a
Registered Civil Engineer, if applicable as determined and required by State,
and in accordance with Standard Condition D-15 (Final Inspections and
Certification of Registered Civil Engineer). Furthermore, the LPS shall provide
the State the opportunity to participate in the inspection. LPS shall make such
notification at least fourteen (14) calendar days prior to the final inspection.
24. Project Managers: Any party may change its Project Manager upon written
notice to the other parties.
a) Water Authority's Project Manager shall be Mark Stadler, Principal Water
Resources Specialist. Water Authority's Project Manager shall be its
representative for the administration of this Agreement and shall have full
authority to act on behalf of the Water Authority, including authority to execute
all payment requests.
b) LPS's Project Manager, Kimberly A. Thorner, shall be its representative for
the administration of this Agreement and shall have full authority to act on
behalf of LPS, including authority to execute all payment requests, demand,
request, consent, or approval that either party desires or is required to give to the
other party under this LPS Agreement shall be in writing.
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3.?
25. Notices: All may be transmitted by any of the following means: (i) by delivery in
person; (ii) by certified U.S. mail, retum receipt requested, postage prepaid; (iii) by
"overnight" delivery service; provided that next-business-day delivery is requested
by the sender; or (iv) by electronic means. 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 ten (10) calendar days after the date
deposited with the U. S. Postal Service. Notices sent by ovemight delivery service
will be deemed effective one business day after the date deposited with the
delivery service. Notices sent electronically will be effective on the date of
transmission, which is documented in writing. Notices shall be sent to the below
addresses. Either party may, by written notice to the other, designate a different
address that shall be substituted for the one below.
26. Project Representatives: The Project Representatives during the term of this Grant
Agreement are as follows.
Direct all inquiries to the Project Managers:
San Diego County Water Authority
Mark Stadler
IRWM Program Manager
4677 Overland Avenue
San Diego, CA 92123
Phone (858) 522-6735
e-mail MStadler@sdcwa.org
Olivenhain Municipal Water District
Kimberly A. Thomer
General Manager
1966 Olivenhain Road
Encinitas, CA 92024
Phone (760) 753-6466
e-mail kthomer@olivenhain.com
27. Termination, Immediate Repayment, Interest: The Agreement may be
terminated by written notice at any time before completion ofthe IRWM Program
at the option of Water Authority or State if LPS breaches the Agreement, and has
been asked to cure the breach within a reasonable time and fails to do so. If the
Agreement is terminated, LPS shall, upon demand, immediately repay to State an
amount equal to the amount of grant funds disbursed to LPS. Interest shall accrue
on all amounts due at the legal rate of interest allowed by law from the date that
notice of termination is mailed to LPS to the date of full repayment.
28. Indemnity-Hold Harmless:
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(a) To the fullest extent permitted by law, the LPS shall (1) immediately defend,
and (2) indemnify the Water Authority, the State, and their directors, officers, and
employees from and against all liabilities regardless of nature or type arising out of
or resulting from LPS' performance of services under this contract, or any negligent
or wrongful act or omission of the LPS or LPS' officers, employees, agents, or
subcontractors. Liabilities subject to the duties to defend and indemnify include,
without limitation all claims, losses, damages, penalties, fines, and judgments;
associated investigation and administrative expenses; defense costs, including but
not limited to reasonable attomeys' fees; court costs; and costs of altemative
dispute resolution. The LPS' obligation to indemnify applies unless it is adjudicated
that its liability was caused by the sole negligence or willful misconduct of an
indemnified party. If it is finally adjudicated that liability is caused by the
comparative active negligence or willful misconduct of an indemnified party, the
LPS indemnification obligation shall be reduced in proportion to the established
comparative liability of the indemnified party.
(b) The duty to defend is a separate and distinct obligation from the LPS's duty to
indemnify. The LPS shall be obligated to defend, in all legal, equitable,
administrative, or special proceedings, with counsel approved by the Water
Authority and State, the Water Authority and State, their directors, officers, and
employees, immediately upon tender to the LPS of the claim in any form or at any
stage of an action or proceeding, whether or not liability is established. An
allegation or determination of comparative active negligence or willful misconduct
by an indemnified party does not relieve the LPS from its separate and distinct
obligation to defend Water Authority and State. The obligation to defend extends
through final judgment, including exhaustion of any appeals.
(c) The review, acceptance or approval of the LPS's work or work product by any
indemnified party shall not affect, relieve or reduce the LPS's indemnification or
defense obligations. This Section survives completion ofthe services or the
termination of this contract. The provisions of this Section are not limited by and
do not affect the provisions of this contract relating to insurance.
29. Insurance:
(a) The LPS shall procure and maintain during the period of performance of
this Contract insurance from insurance companies admitted to do business in the
State of Califomia, as set forth in this Section or as additionally required by
supplemental condition. An approved combination of pooled and self-insurance
coverage is an acceptable altemative for general liability, auto coverage, or
workers comp. These policies shall be primary insurance as to the Water Authority
so that any other coverage held by the Water Authority shall not contribute to any
loss under the LPS's insurance. Coverage may be provided by a combination of
primary and excess insurance policies, provided all insurers meet the requirements
of this Section.
(b) All insurance shall cover occurrences during the coverage period.
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(c) The coverage amount of each policy of insurance shall be as required by
the Water Authority.
(1) The following insurance and limits are required for the contract:
General Liability: Coverage at least as broad as ISO form GC 00 01 10 01
Limit per occurrence: 1,000,000
(d) The insurance policies shall be endorsed as follows:
(1) For the general commercial liability as well as excess or
umbrella insurance covering risks within the scope of that type insurance, the
Water Authority, its directors, officers, employees and agents are included as
additional insureds with regard to liability and defense of suits or claims arising
from the operations, products and activities performed by or on behalf of the
Named Insured. The LPS's insurance applies separately to each insured,
including insureds added pursuant to this paragraph, against whom claim is
made or suit is brought except with respect to the policy limits of liability. The
inclusion of any person or entity as an insured shall not affect any right which
the person or entity would have as a claimant if not so included. Any failure of
the named insureds to comply with reporting provisions ofthe policy or
breaches or violations of warranties shall not affect coverage provided to the
insureds added pursuant to this paragraph. The additional insured endorsement
shall provide coverage at least as broad as ISO form CG 20 10 10 93.
(2) The LPS's insurance shall be primary. Any other insurance or
self-insurance available to the Water Authority or persons stated in paragraph
(1) shall be in excess of and shall not contribute to the Contractor's insurance.
(3) The insurance shall not be canceled or materially reduced in
coverage except after 30 days prior written notice receipted delivery has been
given to the Water Authority, except 10 days notice shall be allowed for non-
payment of premium.
(e) Unless otherwise specified, the insurance shall be provided by an
acceptable insurance provider, as determined by the Water Authority, which
satisfies the following minimum requirements: An insurance carrier admitted
to do business in Califomia and maintaining an agent for process within the
state. Such insurance carrier shall maintain a current A.M. Best rating
classification of "A- (A minus)" or better and a financial size of $10 million to
$24 million (Class V) or better, or a Lloyds of London program provided by
syndicates of Lloyds of London and other London insurance carriers, providing
all participants are qualified to do business in Califomia and the policy provides
for an agent for process in the state and the program assures a financial
15
capability at least equal to the required classification and size for admitted
insurers.
(f) Certificates of insurance and endorsements shall be provided by the LPS
and approved by the Water Authority before execution of the Contract.
Endorsements may be provided on forms provided by the Water Authority, or
substantially equivalent forms provided by the insurer.
Additional Insured: All Consultants/Contractors performing the scope of work
on behalf of the LPS shall name the Water Authority and State (including their
directors, officers, employees, and agents) as an additional insured on their
Commercial General Liability policy and the policy shall be endorsed with use
of an ISO form CG 20 10 10 93 or equivalent.
30. Laws and Venue: This Agreement shall be interpreted in accordance with the
laws ofthe state of Califomia. If any action is brought to interpret or enforce any
term of this Agreement the action shall be brought in a state or federal court in San
Diego County.
31. Assignment: A Party shall not assign, sublet, or transfer this Agreement or any
rights or interest in this Agreement without the written consent ofthe Water
Authority, which may be withheld for any reason.
32. Integration: This Agreement represents the entire understanding of the Parties as
to those matters contained herein. No prior oral or written understanding should
be of any force or effect with respect to those matters covered hereunder. This
Agreement may not be modified or altered except in writing signed by the Parties.
33. Incorporation of standard conditions and LPS commitments: The following
exhibits are attached and made a part of this Agreement by this reference:
Exhibit A - Work Plan
Exhibit B - Schedule
Exhibit C - Budget
Exhibit D - Standard Conditions
Exhibit E - Report Format and Requirements
Exhibit F- Disbursement Process
Exhibit G- Requirements for Data Submittal
Exhibit H- State and Water Authority Auditing and Documentation
Requirements
34. Signatures: The individuals executing this Agreement represent and warrant that
they have the legal capacity and authority to do so on behalf of their respective
legal entities.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date below:
SAN DIEGO COUNTY WATER AUTHORITY Approved as to form and legality:
By:.
Ken Weinberg
Director of Water Resources
By:
Rosann Gallien
Deputy General Counsel
OLIVENHAIN MUNICIPAL WATER DISTRICT
Local Project Sponsor Approved as to form and legality:
Name Ki^eeLY P^-luo^e^
Title Gai^t Title (^eRiVbCoOMSeL
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43
EXHIBIT A
WORK PLAN
Project 2: North San Diego County Regional Recycled Water Project
Project Description
The North San Diego County Regional Recycled Water Project is a plan by North San Diego County water and
wastewater agencies to regionalize recycled water systems by identifying new agency interconnections, seasonal storage
opportunities and indirect potable water uses that will maximize supplies, reduce wastewater discharges to ocean,
potentially reduce energy consumption due to diminished delivery of imported water, and allow recycled water to play an
even more significant role in meeting future water needs.
Tasks
A. Direct Proiect Administration Costs
Task 1 - Project Administration: This project will involve project administration after the Implementation Grant
Agreement is executed. Project administration will involve coordinating various project elements with the 12 project
partners. The project partners entered into an agreement in June 2010 to utilize the Recycled Water Facilities Plan to:
analyze individual facilities and projects, to study the ability to interconnect, to maximize recycled treatment facilities and
use of recycled water, and to study any potential water quality or physical issues with the comprehensive regional project.
In addition, project administration will involve administration, coordination, and review of all project tasks.
Task 2 - Labor Compliance Program: This task includes the work necessary to comply with California Labor Code 1720
et.seq.
Task 3 - Reporting: In order to assess progress and accomplishments of the project, the following submittals will be
completed and submitted to the SDCWA:
Project Administration Deliverables
Project Monitoring Plan
Quarterly Progress Reports and Invoices
Final Project Completion Report
B. Land Purchase Easement
Land and rights-of-way acquisition are not required for the project.
C. Planning/Pesign/Enqineerinq/Environrnental Documentation
Task 4 - Assessment and Evaluation: The Recycled Water Facilities Plan was initially completed in March 2011 and
will be revised; recycled water facilities on U.S. Marine Corps Camp Pendleton have recently been added into planning for
the regional system. This plan analyzed existing and proposed recycled water facilities and evaluated each agency's
ability to interconnect and maximize the use of recycled water within their combined service areas. Tasks that were
undertaken to complete this plan include: reviewing previous studies, reviewing regulatory/water quality considerations,
comparing supply and demand, developing alternative concepts, evaluating alternative concepts, summarizing funding
options, and preparing the plan. The following data and information were reviewed to complete this plan: Recycled Water
Master Plans, Waste Discharge Permits, Annual Recycled Water Supply Reports, Recycled Water Project Implementation
Plans, Water and Sewer Master Plans, NPDES Permits, Urban Water Management Plans, Recycled Water Facilities
Plans, Outfall Capacity Studies, Asset Management Plans, Recycled Water Agreements, and Recycled Water maps. In
addition, recycled water supply and demand forecasts were collected and analyzed in order to complete the plan.
The Recycled Water Feasibility Study will build on the analysis and recommendations in the Recycled Water Facilities
Plan. The Recycled Water Feasibility Study will provide the basis to pursue federal funding through the U.S. Army Corps
of Engineers/Water Resources Development Act. The Recycled Water Feasibility Study will be compliance with U.S. Army
Corps of Engineers/Water Resources Development Act and will include a problem/needs statement, water reuse
opportunities, description of alternatives, economic analysis of alternatives, environmental analysis of alternatives, legal
and institutional requirements, financial capability ofthe sponsor, and research needs. Additionally, project partners in the
regional recycled system will undertake planning, design, and engineering of some project components.
The Engineering Study for Regional Seasonal Recycled Water Storage will evaluate two regional sites as potential
regional seasonal recycled water storage sites. This study will expand upon the regional seasonal storage alternatives
identified in the Recycled Water Facility Plan. The anticipated sites have been identified previously, but not studied as a
regional alternative.
Grant Agreement No. 4600009707
Page 2 of 4
Study Performed and Deliverables
Recycled Water Facilities Plan
Recycled Water Feasibility Study
Engineering Study for Regional Seasonal Recycled Water Storage
Task 5 - Final Design: Design for this project has not yet been completed, and will therefore be completed after the
agreement is executed. This project will not involve final design, and will therefore not include any solicitation efforts.
Design Deliverables
Final Design
Task 6 - Environmental Documentation: It is anticipated that a joint CEQA/NEPA Programmatic Environmental Impact
Report (EIR)/Environmental Assessment (EA) will be completed in order to provide an understanding of environmental
impacts associated with the proposed recycled water storage and conveyance facilities. Preparation of a joint
CEQA/NEPA document is anticipated in order to provide programmatic environmental compliance for all facilities
identified in the Recycled Water Feasibility Study. Project-level environmental documentation (either stand-alone or tiered)
will be prepared prior to initiation of any construction activities for individual project components.
Environmental Documentation Deliverables
CEQA/NEPA Programmatic EIR/EA
Task 7 - Permitting: This project will not include any permitting. Project-level permitting, as necessary, will be obtained
prior to initiation of any construction activities for individual project components.
D. Construction/Implementation
Task 8 - Construction Contracting: This project will not include construction contracting. Project-level construction
contracting will be completed for construction of individual project components.
Task 9 - Construction: Construction tasks for this project will implement early components of the regional recycled water
system. These components would help to optimize the production and distribution of recycled water throughout the North
County region:
• Subtask 9.1: Construction of SEJPA Demineralization Facility. This effort will contribute to construction of a
demineralization facility at the San Elijo Water Reclamation Facility to increase recycled water production by 560
AFY. This construction effort is aligned (though not redundant) with construction activities being implemented
under the Nortti San Diego County Cooperative Demineralization Project. Project construction will include purchase and
installation of process equipment, one PALL A-6 microfiltration unit, for the demineralization facility.
• Subtask 9.2: Construction of Carlsbad MWD Recycled Water Pipeline. This effort will construct approximately
1,000 linear feet of 12-inch recycled water pipeline. The pipeline is intended to expand the district's customer
base and possibly result in an intertie with a neighboring agency to further distribute available recycled water
supplies.
• Subtask 9.3: Construction of Rincon del Diablo MWD Recycled Water Storage and Conveyance. This effort
will construct upgrades to an existing 3.5 million gallon potable water storage tank. The storage tank will be
decoupled from potable supply and converted to recycled water use. This project will also involve construction of
approximately 2,000 linear feet of conveyance pipelines to put the storage tank into service.
Project-level environmental documentation, in compliance with CEQA, will be prepared and certified prior to initiation of
any construction activities for individual project components.
E. Environmental Compliance/Mitiqation/Enhancement
Task 10 - Environmental Compliance/Mitigation/Enhancement: No environmental mitigation or enhancement action
or tasks are included in this project. Project-level environmental mitigation will be implemented prior to initiation of any
construction activities for individual project components.
F. Construction Administration
Task 11 - Construction Administration: This project will not include construction administration.
7A
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37
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Grant Agreement No. 4600009707
Page 4 of 4
EXHIBIT C
BUDGET
Project 2: North San Dieao Countv Reqional Recvcled Water Project
(a) (b) (C) (d)
Budget Category Funding Match * DWR Grant
Amount
"Other"
Cost Share* Total
(a) Direct Project Administration Costs $0 $0 $55,000 $55,000
(b) Land Purcliase/Easement $0 $0 $0 $0
(c) Planning/Design/Engineering/
Environmental Documentation $200,000 $1,185,000 $200,000 $1,585,000
(d) Construction/Implementation $540,777 $270,000 $519,223 $1,330,000
(e) Environmental Compliance/
IVIitigation/Enliancement $0 $0 $0 $0
(f) Construction Administration $0 $0 $0 $0
(g) Other Costs (Including Legal Costs,
Permitting and Licenses) $0 $0 $0 $0
(h) Construction/Implementation Contingency $0 $0 $0 $0
(1) Project Total $740,777 $1,455,000 $774,223 $2,970,000
^)* General funds of participating project partners.
2) Project Subtotal (1) denotes sum of costs a tlirougti h, which excludes the SDCWA Grant Administration costs for the Program. Values on
this row are reflected in Table 8 - Summary Budget.
EXHIBIT D
STANDARD CONDITIONS
D.l ACCOUNTING AND DEPOSIT OF GRANT DISBURSEMENT:
a) SEPARATE ACCOUNTING OF GRANT DISBURSEMENT AND
INTEREST RECORDS: LPS shall account for the money disbursed pursuant
to this LPS Agreement separately from all other LPS' funds. LPS shall
maintain audit and accounting procedures that are in accordance with
generally accepted accounting principles and practices, consistently applied.
LPS shall keep complete and accurate records of all receipts, disbursements,
and interest eamed on expenditures of such funds. LPS shall require its
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 the Water
Authority and the State at any and all reasonable times.
b) FISCAL MANAGEMENT SYSTEMS AND ACCOUNTING
STANDARDS: The LPS 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 LPS Agreement.
c) REMITTANCE OF UNEXPENDED FUNDS: LPS, within a period of
thirty (30) calendar days from the final disbursement from the Water Authority
to LPS of grant funds, shall remit to the Water Authority any unexpended
funds that were disbursed to LPS and were not needed to pay Eligible Project
Costs.
D.2 ACKNOWLEDGEMENT OF CREDIT: LPS shall include appropriate
acknowledgement of credit to the State and to all cost-sharing partners for their
support when promoting the Project or using any data and/or information developed
under this LPS Agreement. During construction of the Project, LPS shall install a
sign at a prominent location, which shall include a statement that the Project is
financed under the Safe Drinking Water, Water Quality and Supply, Flood Control,
River and Coastal Protection Bond Act of 2006, administered by State of
Califomia, Department of Water Resources. LPS shall notify State that the sign has
been erected by providing them with a site map with the sign location noted and a
photograph of the sign.
D.3 AMENDMENT: No amendment or variation of the terms of this LPS
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
LPS Agreement is binding on any of the parties. For guidance on the Amendment
Requirements, see Exhibit H.
D.4 AMERICANS WITH DISABILITIES ACT: By signing this LPS Agreement,
LPS assures the Water Authority that it complies with the Americans with
Disabilities Act (ADA) of 1990, (42 U.S.C., 12101 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: The State or the Water Authority reserves the right to conduct an
audit at any time between the execution of this LPS Agreement and the completion
ofthe Project, with the costs of such audit bome by the Water Authority or the
State. After completion ofthe Project, the State or the Water Authority may require
LPS to conduct a final audit conducted by and a report prepared by an independent
Certified Public Accountant at the LPS expense. For post completion audits
initiated by the Water Authority, costs of independent auditor firm will be bome by
the Water Authority provided that no misappropriation of funds is discovered as a
result of such audit. Failure or refusal by Grantee to comply with this provision
shall be considered a breach of this Grant Agreement, and State may take any action
it deems necessary to protect its interest.
Pursuant to Govemment Code Section 8546.7, the parties shall be subject to the
examination and audit ofthe Califomia State Auditor and the Water Authority for a
period of three years after completion of Grant Agreement no. 4600009707. All
records of Local Project Sponsors and its sub contractors shall be preserved for at
least three (3) years after Grant Agreement no.4600009707 is completed or
through Mav 31,2020, whichever is later. Please see Exhibit H for a listing of
documents/records that State Auditors and the Water Authority would need to
review for a grant audit.
D.6 BUDGET CONTINGENCY: LIMIT ON STATE FUNDS. Safe Drinking
Water, Water Quality and Supply, Flood Control,_River and Coastal Protection
Bond Act of 2006 is subject to the availability of funds including any mandates
from the Department of Finance, the Pooled Money Investment Board or any other
state authority. The Water Authority will not make payments of any kind, including
advances or reimbursements, until State funding is made available by the State
Treasurer. If the State ceases payment, the Water Authority has no obligation to
make payments for any work done and not reimbursed by the State.
D.7 CHILD SUPPORT COMPLIANCE ACT: For any LPS Agreement in excess
of $100,000, the LPS acknowledge the following in accordance with Public
Contract Code 7110:
a) The LPS recognizes the importance of child and family support obligations and
shall fully comply with all applicable state and federal laws relating to child and
family support enforcement, including, but not limited to, disclosure of
information and compliance with eamings assignment orders, as provided in
19
Chapter 8 (commencing with section 5200) of Part 5 of Division 9 ofthe Family
Code; and
b) The LPS, to the best of its knowledge, is fully complying with the eamings
assignment orders of all employees and is providing the names of all new
employees to the New Hire Registry maintained by the Califomia Employment
Development Department.
D.8 COMPETITIVE BIDDING AND PROCUREMENTS: LPS shall comply
with all applicable laws and regulations regarding securing competitive bids and
undertaking competitive negotiations in LPS's contracts with other entities for
acquisition of goods and services and constmction of public works with funds
provided by State under this LPS Agreement.
D.9 COMPUTER SOFTWARE: The LPS certifies that it has appropriate systems
and controls in place to ensure that state funds will not be used in the performance
of this LPS Agreement for the acquisition, operation, or maintenance of computer
software in violation of copyright laws.
D.IO CONFLICT OF INTEREST
a) 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.
b) Former State Employee: 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 ofthe 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 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.ll DELIVERY OF INFORMATION, REPORTS, AND DATA: The LPS
agrees to expeditiously provide, during work on the Project and throughout the term
of this LPS Agreement, such reports, data, information, and certifications as may be
reasonably required by the Water Authority and the State.
D.12 DISPOSITION OF EQUIPMENT: LPS shall consult with State, via the
Water Authority, on the scope of the inventory not less than forty five (45) days
prior to the submission of the final project invoice. LPS shall provide to the Water
Authority, not less than fifteen (15) days prior to submission of the final project
20
^0
invoice, a final inventory list of equipment purchased with grant funds provided by
the State. The inventory shall include all items with a current estimated fair market
value of more than $5,000 per item. Within 60 days of receipt of such inventory.
State, via the Water Authority, shall provide LPS with a list of the items on the
inventory that State will take title to. All other items shall become the property of
LPS. State shall arrange for delivery from LPS of items that it takes title to. Cost of
transportation, if any, shall be bome by State.
D.13 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 or the method of delivery as directed may result in retum ofthe
invoice to the LPS. Payment shall be deemed complete upon deposit ofthe
payment, properly addressed, postage prepaid, in the United States mail. Any claim
that LPS may have regarding the performance of this Agreement including, but not
limited to claims for additional compensation or extension of time, shall be
submitted to the San Diego County Water Authority, IRWM Program Manager,
within thirty (30) calendar days of LPS's knowledge of the claim. The Water
Authority and the LPS shall then attempt to negotiate a resolution of such claim and
process an amendment to the Agreement to implement the terms of any such
resolution.
D.14 DRUG-FREE WORKPLACE CERTIFICATION
Certification of Compliance: By signing this Agreement, LPS, its contractors or
subcontractors hereby certify, under penalty of perjury under the laws of State of
Califomia, compliance with the requirements of the Dmg-Free Workplace Act of
1990 (Govemment Code 8350 et seq) 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
Govemment Code Section 8355(a).
b) Establish a Drug-Free Awareness Program, as required by Govemment 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. LPS' 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 LPS
Agreement:
1. Will receive a copy of LPS' s dmg-free policy statement, and
21
2. Will agree to abide by terms of LPS's condition of employment, contract
or subcontract.
D.15 FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED
CIVIL ENGINEER: Upon completion of a construction project and as determined
by State, LPS shall provide for a final inspection and certification by a Califomia
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 LPS Agreement and to the State's satisfaction.
D.16 GOVERNING LAW: This LPS Agreement is govemed by and shall be
interpreted in accordance with the laws ofthe State of Califomia.
D.17 LPS COMMITMENTS: LPS accepts and agrees to comply with all terms,
provisions, conditions, and commitments of this Funding Agreement, including all
incorporated documents, and to fulfill all assurances, declarations, representations,
and statements made by Funding Recipient in the application, documents,
amendments, and communications filed in support of its request for Califomia Safe
Drinking Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Act of 2006 financing.
D.18 INCOME RESTRICTIONS: The LPS agrees that any refunds, rebates,
credits, or other amounts (including any interest thereon, accming to or received by
the LPS under this LPS Agreement) shall be paid by the LPS to the State, via the
Water Authority, to the extent that they are properly allocable to costs for which the
LPS has been reimbursed by the State, Via the Water Authority, under this LPS
Agreement.
D.19 INDEPENDENT CAPACITY: LPS, and the agents and employees of LPS, if
any, in the performance of the LPS Agreement, shall act in an independent capacity
and not as officers, employees, or agents ofthe State or the Water Authority.
D.20 INSPECTIONS: The State and the Water Authority 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 LPS Agreement. LPS shall
include provisions ensuring such access in all its contracts or sub-contractors
entered into pursuant to its LPS Agreement with the Water Authority. LPS
acknowledges that Project documents may be subject to the Public Records Act
(Califomia Govemment Code Section 6250 et. seq.). State and the Water Authority
shall have the right to inspect these documents at any and all reasonable times after
completion of the Project to ensure compliance with the terms and conditions of this
LPS Agreement and the Grant Agreement. During regular office hours, the State
and the Water Authority shall have the right to inspect and to make copies of any
books, records, or reports of the LPS relating to this LPS Agreement. LPS shall
maintain and shall make available at all times for such inspection accurate records
of its costs, disbursements, and receipts with respect to its activities under this LPS
22
Agreement. Failure or refusal by LPS to comply with this provision shall be
considered a breach of this LPS Agreement, and State or the Water Authority may
withhold disbursements to LPS or take any other action it deems necessary to
protect its interests.
D.21 NONDISCRIMINATION: During the performance of this LPS Agreement,
LPS and its 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. LPS and contractors shall ensure that the
evaluation and treatment of their employees and applicants for employment are free
from such discrimination and harassment. LPS and contractors shall comply with
the provisions ofthe Fair Employment and Housing Act (Govemment Code Section
12990 (a-f) et seq) and the applicable regulations promulgated there under
(Califomia Code of Regulations, Tide 2, Section 7285 et seq). The applicable
regulations ofthe Fair Employment and Housing Commission implementing
Govemment Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Titie
2 ofthe Califomia Code of Regulations, are incorporated into this LPS Agreement
by reference and made a part hereof as if set forth in full. LPS and its contractors
shall give written notice of their obligations under this clause to labor organizations
with which they have a collective bargaining or other agreement. LPS shall include
the nondiscrimination and compliance provisions of this clause in all contracts to
perform work under the LPS Agreement.
D.22 NO THIRD PARTY RIGHTS: The parties to this LPS Agreement do not
intend to create rights in, or grant remedies to, any third party as a beneficiary of
this LPS Agreement, or of any duty, covenant, obligation or undertaking established
herein.
D.23 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 or the Water Authority is
for administrative purposes only and does not relieve the LPS of its responsibility to
properly plan, design, construct, operate, maintain, implement, or otherwise carry
out the IRWM Program.
D.24 PERMITS, LICENSES, APPROVALS, AND LEGAL OBLIGATIONS.
LPS shall be responsible for obtaining any and all permits, licenses, and approvals
required for performing its obligations under this LPS Agreement. LPS shall
comply with the Califomia Environmental Quality Act (PRC Section 21000 et seq)
and other applicable federal. State, and local laws, rules, and regulations,
guidelines, and requirements prior to disbursement of funds under this LPS
Agreement.
23
53
Without limiting the foregoing, LPS shall keep informed of and take all measures
necessary to ensure compliance with Califomia Labor Code requirements, including
but not limited to Section 1720 et seq. of the Califomia Labor Code regarding
public works, limitations on use of volunteer labor (Califomia Labor Code Section
1720.4), labor compliance programs (Califomia Labor Code Section 1771.5), and
payment of prevailing wages for work done under this Funding Agreement.
Pursuant to the provisions of Proposition 84, the Safe Drinking Water, Water
Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006,
Cal. Pub. Res. Code § 75076 et seq., the Funding Recipient must have a labor
compliance program that meets the requirements of Califomia Labor Code Section
1771.5.
D.25 PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT
STATE PERMISSION: 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 the State, via the
Water Authority. Local Project Sponsors shall not take any action conceming the
performance of this LPS Agreement, including but not limited to actions relating to
user fees, charges, and assessments that could adversely affect the ability of LPS to
meet its obligations under this LPS Agreement, without prior written permission of
State via the Water Authority. State may require that the proceeds from the
disposition of any real or personal property acquired with funds disbursed under
this LPS Agreement be remitted to State.
D.26 REMEDIES, COSTS, AND ATTORNEY FEES: The LPS agrees that any
remedy provided in this LPS Agreement is in addition to and not in derogation of
any other legal or equitable remedy available to the Water Authority as a result of
breach of this LPS Agreement by the LPS, whether such breach occurs before or
after completion ofthe Project, and exercise of any remedy provided by this LPS
Agreement by the Water Authority shall not preclude the State from pursuing any
legal remedy or right which would otherwise be available. In the event of litigation
between the parties hereto arising from this LPS Agreement, it is agreed that the
prevailing party shall be entitied to such reasonable costs and/or attomey fees as
may be ordered by the court entertaining such litigation.
D.27 RETENTION: Notwithstanding any other provision of this LPS Agreement,
State shall, for each project, withhold five percent (5.0%) until January 1, 2016
and ten percent (10.0%) thereafter, of the funds requested by LPS for
reimbursement of Eligible Costs. Each project in this LPS Agreement will be
eligible to release its respective retention when that project is completed and LPS
has met requirements of Paragraph 17, "Submissions of Reports" as follows. At
such time as the "Project Completion Report" required under Paragraph 17 is
submitted to and approved by State, State shall disburse the retained funds as to that
project to LPS, except in the case of the last project to be completed under this LPS
24
5V
Agreement, in which case retention for such project will not be disbursed until the
"Grant Completion Report" is submitted to and approved by State.
D.28 RIGHTS IN DATA: To the extent permitted by law, the LPS 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 LPS Agreement shall be in the public domain. The LPS may disclose,
disseminate and use in whole or in part, any final form data and information
received, collected, and developed under this LPS Agreement, subject to
appropriate acknowledgement of credit to the State for financial support. The LPS
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.29 SEVERABILITY OF UNENFORCEABLE PROVISION: If any provision
of this LPS Agreement is held invalid or unenforceable by a court of final
jurisdiction, all other provisions of this LPS Agreement shall be construed to remain
fully valid, enforceable, and binding on the parties.
D.30 STATE REVIEWS AND INDEMNIFICATION: The parties agree that
review or approval of Project applications, documents, permits, plans and
specifications or other Project information by the State is for administrative
purposes only and does not relieve the LPS or Local Project Sponsors of their
responsibility to properly plan, design, constmct, operate, maintain, implement, or
otherwise carry out the Project. To the extent permitted by law, the Local Project
Sponsors agree to indemnify, defend and hold harmless the Water Authority and the
against any loss or liability arising out of any claim or action brought against the
Water Authority and the State from and against any and all losses, claims, damages,
liabilities or expenses, of every conceivable kind, character and nature whatsoever
arising out of, resulting from, or in any way connected with:
a) The Project or the conditions, occupancy, use, possession, conduct or
management of, work done in or about, or the planning, design, acquisition,
installation, or construction, ofthe Project or any part thereof;
b) Performing any ofthe terms contained in this LPS Agreement or any related
document;
c) Any violation of any applicable law, rule or regulation, any environmental law
(including, without limitation, the Federal Comprehensive Environmental
Response, Compensation and Liability Act, the Resource Conservation and
Recovery Act, the Califomia Hazardous Substance Account Act, the Federal
Water Pollution Control Act, the Clean Air Act, the Califomia Hazardous Waste
Control Law and Califomia Water Code Section 13304, and any successors to
said laws), rule or regulation or the release of any toxic substance on or near the
natural water system; or
d) Any untrue statement or alleged untrue statement of any material fact or
omission or alleged omission to state a material fact necessary to make the
statements required to be stated therein, in light of the circumstances under
which they were made, not misleading with respect to any information provided
25
5
by the LPS for use in any disclosure document utilized in connection with any
ofthe transactions contemplated by this LPS Agreement. LPS agrees to pay and
discharge any judgment or award entered or made against the State with respect
to any such claim or action, and any settlement, compromise or other voluntary
resolution. The provisions of this section shall survive the term of this
Agreement.
D.31 SUCCESSORS AND ASSIGNS: This LPS Agreement and all of its provisions
shall apply to and bind the successors and assigns of the parties. No assignment or
transfer of this LPS Agreement or any part thereof, rights hereunder, or interest
herein by the LPS 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.32 TIMELINESS: Time is ofthe essence in this LPS Agreement.
D.33 TRAVEL: LPS agrees that travel and per diem costs shall NOT be eligible for
reimbursement with State funds, and shall NOT be eligible for computing LPS cost
match. Travel includes the costs of transportation, subsistence, and other associated
costs incurred by personnel and contractors during the term of this LPS Agreement.
D.34 WAIVER OF RIGHTS: None ofthe provisions of this LPS Agreement shall
be deemed waived unless expressly waived in writing. It is the intention ofthe
parties here to that from time to time either party may waive any of its rights under
this Agreement unless contrary to law. Any waiver by either party of rights arising
in connection with the LPS 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.
26
5^
EXHIBIT E
REPORT FORMAT AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain Water Authority's
approval prior to submitting a report in an altemative format.
OUARTERLY PROGRESS REPORT
Local Project Sponsor shall submit Quarterly Progress Reports on a consistent basis to
meet the State's requirement for disbursement of funds. The quarterly progress report
should describe the work performed during the reporting period. For each project,
describe the work performed including:
CONTINUING ELIGIBILITY
• For Urban Water Suppliers who have not submitted a complete Urban Water
Management Plan, the status of the plan development and submittal.
• Discuss the reasonable and feasible efforts to engage DAC into your IRWM
efforts in regards to planning and projects that support their critical water
supply or water quality needs, as applicable.
• An update on efforts to adopt a Groundwater Management Plan as
applicable.
PROJECT INFORMATION (INCLUDE ANY OF THE BELOW THAT WERE APPLICABLE
DURING THE REPORTING PERIOD)
• 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 quarter (i.e. tasks completed, milestones
met, meetings held or attended, press releases, etc).
• Discussion of data (or report) submittal effort(s) for the previous quarter,
including a description of the data (or report) submitted and date(s) of
submittal.
• Issues/concems that have, will, or could affect the schedule or budget, with
a recommendation on how to correct the matter.
• Description of any differences between the work performed and the work
outlined in the project work plans.
• Description of any efforts to update IRWM Plan to obligations listed in
Paragraph 12, "Continuing Eligibility, if applicable."
• Any scope amendment officially approved by the State during the quarter
27
S7
COST INFORMATION
• Provide a List showing all costs incurred during the quarter by the LPS, the
Local Project Sponsor overseeing the work, and each contractor working on
the project. The list should include for all non-constmction, or
implementation costs, (i.e., design, and admin charges) the hours per task
worked on with rates 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.
• A revised budget, including an explanation of why the revisions were
necessary, by task, if changed from latest budget shown in Exhibit C,
Budget. Note, a revised budget may require an official amendment to the
Agreement before it is accepted as final.
• Any budget amendment officially approved by the State during the quarter.
• Costs broken down by funding match (FUNDING MATCH and OTHER)
and grant incurred for the quarter and to date.
• Payments of any invoices received during the past quarter.
LABOR COMPLIANCE INFORMATION
• Provide labor compliance status during the reporting period
EQUIPMENT INVENTORY INFORMATION
• Disclose equipment purchased for the current reporting period over
$5,000. Equipment purchased from previous quarter but has not been
disclosed can be reported during the reporting period.
SCHEDULE INFORMATION
• A schedule showing actual progress versus planned progress as shown in
Exhibit B.
• A discussion on how the actual schedule is progressing in comparison to the
schedule in Exhibit B.
• A revised schedule, by task, if changed from latest schedule in Exhibit B.
Note, a revised schedule may require an official amendment to the
Agreement before it is accepted as final.
• Any schedule amendment officially approved by the State during the
quarter.
ANTICIPATED ACTIVITIES NEXT QUARTER
• Provide a description of anticipated activities for the next quarterly reporting
period.
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PROJECT COMPLETION REPORT
A Project Completion Report is required for each project identified in the Work Plan,
Exhibit A. This report will include the following Sections:
EXECUTIVE SUMMARY
The Executive Summary consists of a maximum of ten (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 Safe Drinking
Water, Water Quality and Supply, Flood Control, River and Coastal
Protection Bond Act of 2006 IRWM Implementation Grant application.
• Description of actual work completed and any deviations from the work
plan identified in the Grant Agreement. List any official amendments to the
Agreement, with a short description of the amendment
• Describe the mechanism or process that allows for continued performance
monitoring ofthe projects in meeting the objectives of the IRWM Plan.
REPORTS AND/OR PRODUCTS
• Provide a copy of any final technical report or study, produced for this
project as described in the Work Plan, if applicable.
• Provide a map and shapefile(s) showing the location of the completed
project. A description of the geographic projection and datum used for the
shapefile must be submitted with the shapefile (a NAD '83 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 '83) 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.
• If applicable, a discussion of the critical water supply or water quality
benefits to DAC as part of this Grant Agreement.
COST & DISPOSITION OF FUNDS INFORMATION
A list of invoices showing:
> The date each invoice was submitted to State.
> The amount of the invoice.
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> The date the check was received.
> The amount of the check (If a check has not been received for the final
invoice, then state this in this section).
• A spreadsheet summary of the original budget costs by task versus the final
project costs
• A summary of final funds disbursement including:
> Labor cost of personnel of agency/ major consultant /sub-consultants
(Indicate personnel, hours, rates, type of profession and reason for
consultant, i.e., design, CEQA work, etc).
> Constmction cost information, shown by material, equipment, labor
costs, and change orders.
> Any other incurred cost detail.
> A statement verifying separate accounting of grant disbursements.
• Summary of project cost including:
> Accounting ofthe cost of project expenditure.
> Include all intemal and extemal 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) Benefits derived from the project, with quantification of such benefits
provided, if applicable.
b) A final project schedule showing actual progress versus planned progress.
c) Certification from a Califomia Registered Civil Engineer that the project
was conducted in accordance with the approved work plan and any
approved modifications thereto.
d) Submittal schedule for the Post Performance Report and an outiine ofthe
proposed reporting format.
PROJECT-PERFORMANCE REPORT
Project Performance Report is required annually for every project for a period of 10
years beginning after the first year of operation, and includes the following:
REPORTS AND/OR PRODUCTS
• Time period ofthe annual report, i.e., October 2014 through September
2015.
• Short project description.
• Brief discussion of the project benefits to water quality, water supply, and
the environment.
• An assessment of any explanations for any differences between the expected
versus actual project benefits in meeting IRWM priorities as stated in the
original IRWM Implementation Grant application. Where applicable, the
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reporting should include quantitative metrics, i.e., new acre-feet of water
produced that year, acres of wildlife habitat added, etc.
• Summary of any additional costs and/or benefits deriving from the project
since its completion, if applicable.
• Continued reporting on meeting the Output hidicators and Targets discussed
in the Project Monitoring Plan discussed in Paragraph 22 of this Grant
Agreement.
• Any additional information relevant to or generated by the continued
operation of the project.
ELECTRONIC REPORT FORMATTING
LPS agrees that work funded under this LPS Agreement will be provided in an
electronic format to the Water Authority. Electronic submittal of final reports, plans,
studies, data, and other work performed under this grant shall be as follows:
• Text preferably in MS WORD or text PDF format.
• Files generally less than 10 MB in size.
• Files named so that the public can determine their content. For example.
Project naming of reports must have the titie and, if subdivided into smaller
sized files, the chapter number/letter and names in the report Table of
Content (TOC); files of maps, figures, and tables by number/letter as
referenced in the TOC; well logs files with DWR-required naming
convention; and Appendix number/letter and named in the TOC.
• For projects involving a modeling component, LPS shall provide the major
input data files, parameters, calibration statistics, output files, and other
information requested by State's Project Manager.
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EXHIBIT F
DISBURSEMENT PROCESS
The State, via the Water Authority will reimburse the LPS for costs incurred after the
grant award date of August 16, 2011, using the concurrent drawdown method by task,
plus retention. That is, if there is LPS Funding Match and DWR grant share associated
with a task; then grant funds and local match dollars will be expended simultaneously
in accordance with the percentage (proportion) of funds coming from local costs and
grant funds shown in the Budget.
Example: A LPS submits Invoice 1 that includes costs for Task 2 of a LPS
agreement; and Task 2 is split with a Funding Match of 25% and grant share of
75% for a total of $100. If the LPS submits an invoice for $4, then $1 would be
drawn down from the Funding Match, and $3 would be reimbursed from the
grant share (minus 5% retention 0.15 cents). The total Invoice 1 reimbursement
for the LPS would be $2.85.
However, no payment will be disbursed until this LPS agreement is executed.
If the LPS submits invoices for allowable Funding Match costs for the period between
September 30, 2008 and prior to initiation of the grant agreement, those costs at DWRs
discretion, will be directly deducted from the grantees Funding Match [refer to Section
V(L) on page 28 of the DWR IRWM Guidelines].
The retention withheld by the Water Authority on each invoice, by task, will be
released to the LPS upon: 1) the Water Authority's receipt of a request for release of
retention, and 2) confirmation by the Water Authority and DWR that all deliverables
shown in Exhibit A have been received.
DWR approves invoice payments at the overarching Task-level. Subtasks are provided
in the Work Plan, Budget, and Schedule for additional detail, and guidance for the
project manager to be aware of when administering the Grant Agreement.
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EXHIBIT G
REQUIREMENTS FOR DATA SUBMITTAL
SURFACE AND GROUNDWATER QUALITY DATA:
Groundwater quality and ambient surface water quality monitoring data that 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 prepared for submission to the Califomia
Environmental Data Exchange Network (CEDEN). The CEDEN data templates are
available on the CEDEN website. Inclusion of additional data elements described on
the data templates is desirable. Data ready for submission should be uploaded to your
CEDEN Regional Data Center via the CEDEN website. CEDEN website:
http://www.ceden.org.
If a project's Work Plan contains a groundwater ambient monitoring element,
groundwater quality monitoring data shall be submitted to the State for inclusion in the
State Water Resources Control Board's Groundwater Ambient Monitoring and
Assessment (GAMA) Program Information on the GAMA Program can be obtained at:
http://www.waterboards.ca.gQv/water issues/programs/gama/. If further information is
required, the Grantee can contact the State Water Resources Control Board (S WRCB)
GAMA Program. A listing of SWRCB staff involved in the GAMA program can be
found at: http://www.swrcb.ca.goy/water issues/programs/gama/contact.shtml
GROUNDWATER LEVEL DATA
For each project that collects groundwater level data. Grantee will need to submit this
data to DWR's Water Data Library (WDL), with a narrative description of data
submittal activities included in project reports, as described in Exhibit E. hiformation
regarding the WDL and in what format to submit data in can be found at:
http://wdl.water.ca.gov/.
In the near future, DWR's WDL will be replaced by the Califomia Statewide
Groundwater Elevation Monitoring program (CASGEM). Once this Program comes
online Grantee will then submit groundwater level data to CASGEM. Information
regarding the CASGEM program can be found at:
http://w^ww.water.ca.goy/groundwatcr/casgcm/
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(.3
EXHIBIT H
STATE AND WATER AUTHORITY'S AUDIT DOCUMENT REQUIREMENTS
AND GUIDELINES FOR LOCAL PROJECT SPONSORS
The following provides a list of documents typically required by State Auditors and
general guidelines for Grantees that is being passed along to the Local Project Sponsor
by the Water Authority. This list may include additional requirements pertains to both
Grant funding and Funding Match and details the documents/records that State
Auditors and the Water Authority would need to review in the event of this LPS and
the Grant Agreement is audited. Local Project sponsors should ensure that such records
are maintained for each the funded project.
List of Documents for Audit
Intemal Controls:
1. Organization chart (e.g., organization chart for this LPS Agreement's funded
project).
2. Written intemal procedures and flowcharts for the following:
a. Receipts, deposits and disbursements
b. State reimbursement requests
c. Grant expenditure tracking
d. Guidelines, policy, and procedures on grant funded Program/Project
3. Audit reports ofthe Agency intemal control structure and/or financial statements
within the last two years.
4. Prior audit reports on grant funded Program/Project.
Agreements and Contracts:
1. Original signed LPS Agreement, any amendment(s) and budget modification
documents.
2. A listing of all bond-funded grants received from the State.
3. A listing of all other funding sources for each project.
4. All subcontractor and consultant contracts and related or partners documents, if
applicable.
5. Contracts between the Water Authority and member agencies as related to this LPS
agreement.
6. Contract between member agency and its funding partners related to this LPS
agreement
Invoices:
1. Invoices from vendors and subcontractors for expenditures submitted to the Water
Authority for payments under the Grant Agreement and the LPS agreement.
2. Documentation linking subcontractor invoices to State reimbursement, requests and
related budget line items under this LPS Agreement.
3. Reimbursement requests submitted to the Water Authority for this LPS Agreement.
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Cash Documents:
1. Receipts (copies of warrants) showing payments received from the State, through
the Water Authority.
2. Deposit slips (or bank statements) showing deposit of the payments received from
the State, through the Water Authority.
3. Cancelled checks or disbursement documents showing payments made to vendors,
subcontractors, consultants, and/or agents under this LPS Agreement.
4. Bank statements showing the deposit of the receipts.
Accounting Records:
1. Ledgers showing entries for receipts and cash disbursements.
2. Ledgers showing receipts and cash disbursement entries of other funding sources.
3. Bridging documents that tie the general ledger to requests for grant reimbursement.
Personnel:
1. List of all contractors and Agency staff that worked on this grant funded
Program/Project.
2. Payroll records including timesheets for contractor staff and the Agency personnel
who provided services charged to this Grant Agreement.
Project Files:
1. All supporting documentation maintained in the project files.
2. All correspondence related to this LPS Agreement.
General Grant Agreement Guidelines
Amendment Requirements:
Formal Amendments to the Grant Agreement are triggered when the proposed changes
are deemed substantial by the State. Substantial changes generally include changes to
the scope of work, schedule, and budget. For example, a formal budget change to an
Agreement is required when the culmination of proposed Grant amount budget
change(s) for a Task is greater than 10% of the original Grant amount budget for that
particular Task or the Task to be exchanged with. Formal Amendments must be
approved by the State's IRWM Program Manager and the signatory authorities as listed
on page 27 of this agreement. Informal Amendments can be obtained via email or any
other written format as required by the SDCWA's IRWM Program Manager, via
SDCWA's Grant Administrator. Amendment request considered "informal" must be
approved by the State's IRWM Program Manager and San Diego Region's Program
Manager prior to implementation.
Funding Match Contribution
Funding Match (often referred to as LPS Cost Share) is the amount defined in
Paragraph 4 of this Agreement. Funding Match consists of non-State funds including
in-kind services. In-kind services are defined as work performed (i.e., dollar value of
non-cash contributions) by the LPS (and potentially other parties involved) directly
related to the execution of the scope of work {examples: volunteer services, equipment
35
use, and facilities). The cost of which in-kind service is valued can counted as funding
match in-lieu of actual funds (or revenue) provided by the LPS. Other funding match
and in-kind service eligibility conditions apply (see paragraph 9). Provided below is
guidance for claiming funding match with and without in-kind services.
1. Adequate documentation supporting value of in-kind service (or volunteer service)
as funding match claimed shall be maintained. Although tracked separately, in-kind
services shall be documented and, to the extent feasible, supported by the same
methods used by the Grantee for its own employees. Provide formal (on official
letterhead) and substantial documentation of in-kind service by including the
following:
o Describe contributed item(s) or service(s)
o Purpose for which contribution was made (tie to scope of work)
o Name of contributing organization and date of contribution
o Real or approximate value of contribution. Who valued the contribution and
how was the value determined? (e.g., actual, appraisal, fair market value, etc.).
Justification of rate, (see item #4, below)
o Person's name and function of the contributing person
o Hours of contribution
o If multiple sources exist, summarize these on a table with summed charges
o Was contribution provided by, obtained with, or supported by govemment
funds? If so, indicate source.
2. Funding match contribution (including in kind services) shall be for costs and
services directly attributed to activities included in this LPS Work Plan. These
services, fumished by professional and technical personnel, consultants, and other
skilled and unskilled labor may be counted as in-kind if the activities are an integral
and necessary part of this LPS Agreement. Evaluate eligibility with the DWR
Project Manager and SD Region's IRWM Program Manger in advance of submittal.
3. Do not track cash contributions made to a project as an expenditure as you would
for an in-kind service. When providing funding match, track cash contributions to
the Project (i.e. revenues) and expenditures (typically in-kind contribution)
separately in an accounting system.
Rates for volunteer or in-kind services shall be consistent with those paid for similar
work in the LPS organization. For example, volunteer service of clearing vegetation
performed by an attomey shall be valued at a fair market value for this service, not the
rate for professional legal services. In those instances in which the required skills are
not found in the recipient organization, rates shall be consistent with those paid for
similar work in the labor market. In either case, paid fringe benefits that are reasonable,
allowable, and allocable may be included in the valuation.
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in-kind services. In-kind services are defined as work performed (i.e., dollar value of
non-cash contributions) by the LPS (and potentially other parties involved) directiy
related to the execution of the scope of work {examples: volunteer services, equipment
use, and facilities). The cost of which in-kind service is valued can counted as funding
match in-lieu of actual funds (or revenue) provided by the LPS. Other funding match
and in-kind service eligibility conditions apply (see paragraph 9). Provided below is
guidance for claiming funding match with and without in-kind services.
1. Adequate documentation supporting value of in-kind service (or volunteer service)
as funding match claimed shall be maintained. Although tracked separately, in-kind
services shall be documented and, to the extent feasible, supported by the same
methods used by the Grantee for its own employees. Provide formal (on official
letterhead) and substantial documentation of in-kind service by including the
following:
o Describe contributed item(s) or service(s)
o Purpose for which contribution was made (tie to scope of work)
o Name of contributing organization and date of contribution
o Real or approximate value of contribution. Who valued the contribution and
how was the value determined? (e.g., actual, appraisal, fair market value, etc.).
Justification of rate, (see item #4, below)
o Person's name and function of the contributing person
o Hours of contribution
o If multiple sources exist, summarize these on a table with summed charges
o Was contribution provided by, obtained with, or supported by govemment
funds? If so, indicate source.
2. Funding match contribution (including in kind services) shall be for costs and
services directly attributed to activities included in this LPS Work Plan. These
services, fumished by professional and technical personnel, consultants, and other
skilled and unskilled labor may be counted as in-kind if the activities are an integral
and necessary part of this LPS Agreement. Evaluate eligibility with the DWR
Project Manager and SD Region's IRWM Program Manger in advance of submittal.
3. Do not track cash contributions made to a project as an expenditure as you would
for an in-kind service. When providing funding match, track cash contributions to
the Project (i.e. revenues) and expenditures (typically in-kind contribution)
separately in an accounting system.
Rates for volunteer or in-kind services shall be consistent with those paid for similar
work in the LPS organization. For example, volunteer service of clearing vegetation
performed by an attomey shall be valued at a fair market value for this service, not the
rate for professional legal services. In those instances in which the required skills are
not found in the recipient organization, rates shall be consistent with those paid for
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^7
similar work in the labor market. In either case, paid fringe benefits that are reasonable,
allowable, and allocable may be included in the valuation.
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