HomeMy WebLinkAboutItem 6g - Authorization of Additional Funding for the Groundwater Contaimination Characterization Project Implementation Phase Item 6g
Department: Utilities
Cost Center: 6001
For Agenda of: 5/16/2023
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Mychal Boerman, Deputy Director – Water
Shawna Scott, Special Projects Manager
SUBJECT: AUTHORIZATION OF ADDITIONAL FUNDING FOR THE
GROUNDWATER CONTAMINATION CHARACTERIZATION PROJECT
IMPLEMENTATION PHASE
RECOMMENDATION
1. Approve the use of up to $730,085 of available funding for the Groundwater
Contamination Characterization Project, Proposition 1 Groundwater Grant Program
Round 3 Implementation Phase; and
2. Authorize the City Manager to execute required grant, consultant, and construction -
related agreements; and
3. Authorize the City Manager to approve amendments and change orders up to
$412,494 or the remaining project balance; and
4. Authorize the City Manager to approve contract agreements for the project, not to
exceed a cumulative total of $7,020,344.
POLICY CONTEXT
One of the core services and objectives of the City Utilities Department Water Resources
Program is to expand the use of groundwater as a source of supply through groundwater
quality and availability related studies and projects. Consistent with General Plan Water
and Wastewater Element Policy A2.2.1 Multi-Source Water Supply, the City utilizes
multiple water resources to meet its water supply needs. Policy A3.2.3 states that “the
City will continue to use groundwater to enhance the resiliency of the City’s water supply
portfolio.” The Implementation Phase of the Groundwater Contamination Characterization
Project (Project) is consistent with these policies because the goal of the Project is to
design and equip wells with treatment systems capable of removing tetrachloroethylene
(TCE), commonly known as perchloroethylene (PCE) contamination. This effort will put
the City’s available groundwater to beneficial use as a drinking water source while
facilitating remediation of the PCE contamination.
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Item 6g
DISCUSSION
Background
Use of available groundwater resources would improve resiliency in the City’s water
supply portfolio. The City does not currently use groundwater as a drinking water source
but considers groundwater as a valuable water resource that will help the City meet its
future water supply goals. Local groundwater quality sampling has documented that areas
of the San Luis Obispo Valley Groundwater Basin underlying the City have localized
groundwater contamination from PCE. PCE contamination restricts the City’s use of
groundwater as a source of drinking water and must be treated for the City to utilize this
resource. PCE is a chemical that is typically associated with dry cleaners, textile
operations, and metal degreasing activities. The origin of the contamination remains
unknown; however, it is not believed to be from a City of San Luis Obispo owned facility.
In August 2018, staff prepared a conceptual proposal through the State of California
Proposition 1 Groundwater Grant Program for the Planning Phase of the Project to
delineate the PCE plume’s physical extent by measuring the concentration of PCE
throughout impacted areas of the groundwater basin. The State’s program provides
funding for grants and loans for projects that prevent and clean up contamination of
groundwater that serves, or has served, as a source of drinking water.
In November 2018, staff received confirmation from the State Water Resources Control
Board (SWRCB) that the City’s conceptual proposal had been reviewed and the City was
invited to submit a full grant application for the Planning Phase of the Project. In July
2020, the City received a $1,996,575 Planning Phase grant to study PCE contamination
of the groundwater basin. A detailed understanding of the extent of PCE contamination
and remediation options were necessary steps in fully utilizing the City’s groundwater
pumping opportunities. The total project cost including the City’s local match was over $2
million. This first phase of the Project including completion of a Remedial Investigation
Report (PCE Plume Characterization Project Summary), Feasibility Study Report for the
PCE Plume Characterization Project, and submittal of all documentation required by the
SWRCB for reimbursement was completed April 12, 2023.
In September 2021, staff submitted a conceptual proposal through the Proposition 1
Groundwater Grant Program indicating the City’s interest in additional grant funding for
the Project’s Implementation Phase (Round 3 of the Proposition 1 Groundwater Grant
Program). In April 2022, the SWRCB invited the City to submit a full grant application for
the Implementation Phase (Round 3) of the Project.
On December 7, 2021, the City Council authorized staff’s submittal of a grant application
for the Implementation Phase of the Project, authorized the City Manager to execute
required grant application documents, and approved the use of up to $642,295 from the
Water Fund Groundwater Program (Project Number 91506) for grant application
preparation and a 10 percent local match for implementation of the Project. The grant
application was submitted July 2022, and the refined estimated budget for the
Implementation Phase was $6,607,850 including a request for $5,877,765 in grant
funding with a local match of $730,085 (Attachment A).
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Item 6g
On March 13, 2023, staff received a preliminary grant award letter from the SWRCB in
the amount of $5,877,765, the full amount requested in the grant application. The award
of the grant from the SWRCB depends on the City’s local funding match , which if
authorized by Council, would provide the matching funds required to implement the
Project. At this time, the City has not yet received the grant agreement from the SWRCB;
the agreement is anticipated to be executed prior to summer 2023. The scope of the
Implementation Phase includes creating a fate and transport groundwater model to verify
the initial treatment recommendations; designing, siting, and installing a monitoring well
network; followed by implementation of the recommended pump and treatment systems
to remove PCE from the plume affecting the San Luis Valley area of the Basin. Upon
completion of the well design, staff will return to Council for adoption of the environmental
document and approval to advertise bids for well construction.
Previous Council or Advisory Body Action
The City Council authorized staff to prepare and submit a grant application for the
Groundwater Contamination Characterization Project (Planning Phase) on February 5,
2019. The authorization included approval of the use of up to $440,000 from the Water
Fund unreserved working capital for a local match of up to 50 percent of the total project
cost.
On December 7, 2021, the City Council approved and authorized the following:
specifications for the Planning Phase of the Project and award of the construction
contract; staff preparation and submittal of the grant application for the Implementation
Phase (Round 3) of the Project; up to $642,295 for application preparation and a local
match of a maximum of 10 percent of the total project cost ($622,295); execution of grant
application documents; and a Resolution entitled “A Resolution authorizing entering into
a Funding Agreement with the State Water Resources Control Board and authorizing and
designating a representative for Phase 3 of the Groundwater Contamination
Characterization Project.”
Public Engagement
The City has provided information on the Utilities Department website and social media
accounts regarding the Project. On November 16, 2022, City staff and WSC (the
consultant for the Project) held a public meeting at the Ludwick Community Center to
present the data collection and analysis results of the PCE Characterization Study
Planning Phase. Staff will continue to conduct public engagement pursuant to the City’s
Public Engagement and Noticing Manual and grant requirements.
CONCURRENCE
The City Finance Department concurs with the additional budget request. Staff will
coordinate with the City Attorney upon receipt of the grant agreement from the SWRCB
and will collaborate with the Public Works Department regarding location of monitoring,
extraction, and treatment wells.
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Item 6g
ENVIRONMENTAL REVIEW
The Implementation Phase of the project includes design of monitoring, extraction , and
treatment wells. Upon completion of the well design, staff will prepare an environmental
determination pursuant to the California Environmental Quality Act (CEQA), which is
anticipated to be an Initial Study/Mitigated Negative Declaration that addresses the direct
and indirect impacts of the Project on the environment.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
The 2015-17 Financial Plan Supplement identified $1,470,000 from the Water Fund for
the Groundwater Program Well Development Program (Capital Improvement Project No.
91506). Resolution No. 10979 (approved February 5, 2019) authorized staff to submit a
grant application for Round 1 (Planning Phase) of the SWRCB Proposition 1 Groundwater
Grant Program and allowed the Utilities Director or designee to sign the corresponding
funding agreement. This resulted in $1,996,575 in grant funding through Agreement No.
D1912530 for the Planning Phase of the Project.
Resolution No. 11294 (approved December 7, 2021) authorized staff to submit a grant
application for Round 3 (Implementation Phase) of the SWRCB Proposition 1
Groundwater Grant Program and allowed the Utilities Director or designee to sign the
corresponding funding agreement. The preliminary award letter indicates approved grant
funding of $5,877,765 for the Implementation Phase of the Project.
Projects and tasks that have been completed to date include the Planning Phase of the
Groundwater Characterization Project and submittal of the Round 3 full grant application,
and $1,142,579 remains in the Groundwater Well Development Program budget as
summarized in the table below.
Funding Source
Planning Phase (complete)
Total Budget Actual Spend Remaining
Balance
State: Prop 1 Grant Funding
(Planning Phase)
$1,996,575 $1,996,575 $0
Water Fund Groundwater
Program (CIP)1
$1,470,000 $327,4212 $1,142,579
Total $3,466,575 $2,323,996 $1,142,579
Notes: 1Refers to the same allocation as the $1,470,000 Water Fund allocation identified for the
Groundwater Program Well Development Program (Capital Improvement Project No. 91506) in
2015-17 Financial Plan Supplement.
2Includes $20,000 for Round 3 (Implementation) grant submittal to the SWRCB Proposition 1
Groundwater Grant Program authorized by Resolution No. 11294.
Page 648 of 1165
Item 6g
On December 7, 2021, the City Council approved up to $642,295 f or the Implementation
Phase (Round 3) of the Project including the grant submittal ($20,000) and ten percent
local match ($622,295). At the time, the total cost of the Implementation Phase was
estimated to be $6,222,950. Based on the refined estimated budget submitted with the
Round 3 grant application (Attachment A), the estimated cost of the Implementation
Phase of the Project increased to $6,607,850 with an identified local match of $730,085.
Therefore, staff is requesting authorization to use the remaining funding from the
Groundwater Well Development Program ($1,142,579) to ensure adequate funding for
the City’s identified local match ($730,085) in addition to any potential increases in costs
related to CEQA compliance, construction and materials costs and associated inflation,
property negotiations and potential acquisitions and easements, and additional
opportunities for public outreach.1 Inclusive of the $5,877,765 grant and requested budget
amendment, the total budget for the Implementation Phase would be $7,020,344.
Funding Sources
Implementation Phase Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost2
State: Prop. 1 Grant
Funding (Round 3
Implementation)
$5,877,7651 $5,877,765 $0 $0
Match Requirement:
Water Fund Groundwater
Program (CIP) $1,142,579
$730,085 $0 $0
Contingency:
Water Fund Groundwater
Program (CIP)
$412,494 $0 $0
Total $7,020,344 $7,020,344 $0 $0
Notes: 1Available upon execution of grant agreement.
2Operation and monitoring of the wells will have ongoing costs, which will be accommodated by
the City’s operational water distribution budget and are intended to be offset by reductions in
costs related to surface water pumping and treatment.
ALTERNATIVES
Council could decide not to approve the supplemental budget request. This action
is not recommended by staff because additional funding is necessary to successfully
complete the Project, which would facilitate remediation of the underlying groundwater
basin, further diversification of the City’s water sources, and use of City wells for
groundwater monitoring, remediation, and extraction.
ATTACHMENT
A - Estimated budget submitted with the Round 3 Implementation Phase Grant
Application.
1 After excluding the $730,085 local match requirement, $412,494 would remain available for amendments
and change orders.
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Attachment 7 - Budget Tables Proposition 1 GWGP Implementation Full Proposal
Applicant: City of San Luis Obispo FAAST PIN: 48368
Project: City of San Luis Obispo PCE Plume Characterization
Requested Grant Local Match Other Funding Total % Local Match
1. Direct Project Administration Costs $114,480 $12,720 $0 $127,200 10%
1.1 Program Management Administration $87,480 $9,720 $97,200 10%
1.2 City Staff Administration $27,000 $3,000 $30,000 10%
2. Planning/Design/Engineering/Environmental $588,690 $142,410 $0 $731,100 17%
2.1 Groundwater Model $117,000 $13,000 $130,000 10%
2.2 Develop Extraction and Monitoring Plan $28,800 $3,200 $32,000 10%
2.3 Design Monitoring Wells $66,420 $7,380 $73,800 10%
2.4 Design Extraction and Treatment Wells (two
locations)$376,470 $41,830 $418,300 10%
2.5 Permitting $0 $77,000 $77,000 100%
3. Construction/Implementation $5,108,670 $567,630 $0 $5,676,300 10%
3.1 Construction - Monitoring Well(s)$830,250 $92,250 $922,500 10%
3.2 Construction Administration - Monitoring Well(s)$99,630 $11,070 $110,700 10%
3.3 Construction - Extraction and Treatment Wells
(two locations)$3,764,700 $418,300 $4,183,000 10%
3.4 Construction Administration Extraction and
Treatment Well $414,090 $46,010 $460,100 10%
4. Monitoring/Performance $36,000 $4,000 $0 $40,000 10%
4.1 Continued Sampling and Monitoring $36,000 $4,000 $40,000 10%
5. Outreach $29,925 $3,325 $0 $33,250 10%
5.1 Outreach $19,800 $2,200 $22,000 10%
5.2 Technical Advisory Meetings $10,125 $1,125 $11,250 10%
Grand Total:$5,877,765 $730,085 $0 $6,607,850 11%
Other Funding Sources:
Note: CHECK YOUR NUMBERS! Do NOT assume this Excel spreadsheet is correct. Please refer to the READ ME tab.
Does the Budget Summary Total match the Budget Details Total?YES
Prop 1 GROUNDWATER GRANT PROGRAM - BUDGET SUMMARY
Page 651 of 1165
Attachment 10 - Budget Tables Proposition 1 GWGP Implementation Full Proposal
Project: City of San Luis Obispo PCE Plume Characterization
1. Direct Project Administration Costs 1.9%$127,200
1.1 Program Management Administration Refer to Budget Narrative $0 $97,200.00 LS 1 $97,200 $97,200
1.2 City Staff Administration City Staff $100.00 300 $30,000 $0 $30,000
2. Planning/Design/Engineering/Environmental 10.7%$731,100
2.1 Groundwater Model Refer to Budget Narrative $0 $130,000.00 LS 1 $130,000 $130,000
2.2 Develop Extraction and Monitoring Plan Refer to Budget Narrative $0 $32,000.00 LS 1 $32,000 $32,000
2.3 Design Monitoring Wells Refer to Budget Narrative $0 $6,150.00 EA 12 $73,800 $73,800
2.4 Design Extraction and Treatment Wells (two
locations)Refer to Budget Narrative $0 $209,150.00 EA 2 $418,300 $418,300
2.5 Permitting Refer to Budget Narrative $0 $77,000.00 LS 1 $77,000 $77,000
3. Construction/Implementation 85.8%$5,676,300
3.1 Construction - Monitoring Well(s)Refer to Budget Narrative $0 $76,875 EA 12 $922,500 $922,500
3.2 Construction Administration - Monitoring
Well(s)Refer to Budget Narrative $0 $110,700 LS 1 $110,700 $110,700
3.3 Construction - Extraction and Treatment Wells
(two locations)Refer to Budget Narrative $0 $2,091,500 EA 2 $4,183,000 $4,183,000
3.4 Construction Administration Extraction and
Treatment Well Refer to Budget Narrative $0 $460,100 LS 1 $460,100 $460,100
4. Monitoring/Performance 1.2%$40,000
4.1 Continued Sampling and Monitoring Refer to Budget Narrative $0 $40,000 LS 1 $40,000 $40,000
5. Outreach 0.4%$33,250
5.1 Outreach Refer to Budget Narrative $0 $22,000 LS 1 $22,000 $22,000
5.2 Technical Advisory Meetings Refer to Budget Narrative $0 $11,250 LS 1 $11,250 $11,250
Grand Total:100%$6,607,850
Note: CHECK YOUR NUMBERS! Do NOT assume this Excel spreadsheet is correct. Please refer to the READ ME tab.
Does the Budget Summary Total match the Budget Details Total?YES
Discipline/Consultant/
Description
Prop 1 GROUNDWATER GRANT PROGRAM - BUDGET DETAIL
Applicant: City of San Luis Obispo FAAST PIN: 48368
# of
Units Total CostRate# of
Hours
Total
Labor
Percent of
CostBudget Category TOTALS
Consulting/Materials/Equipment
Unit Cost Units
Labor Costs
Page 652 of 1165
Attachment 10 - Budget Tables Proposition 1 GWGP Implementation Full Proposal
Project: City of San Luis Obispo PCE Plume Characterization
Prop 1 GROUNDWATER GRANT PROGRAM - BUDGET NARRATIVE
Applicant: City of San Luis Obispo FAAST PIN: 48368
Costs associated with work with contracts to be awarded are based on professional experience and the latest program cost estimates. Note that consultant costs will be
completed on a time and materials basis and construction contractor costs will be paid based on bid documents and percent progress. The basis for each line item estimate in
the budget is described below.
1. Direct Project Administration Costs
1.1 Program Management Administration -Estimated at 1.5% of the overall program value.
1.2 City Staff Administration -Based on City staff availability and expected level of effort/involvement to provide general oversight on behalf of the City,manage consultants,
execute and manage City contracts. Budget assumes 300 hours of staff time at an hourly rate of $100/hr.
2. Planning/Design/Engineering/Environmental
2.1 Groundwater Model -Estimated based on experience and engineering judgement. Work anticipated to be performed by Water Systems Consulting Team.
2.2 Extraction and Monitoring Plan -Estimated based on experience and engineering judgement. Work anticipated to be performed by Water Systems Consulting Team.
2.3 Design Monitoring Wells -Estimated at 8% of the total construction cost of Task 3.1. Work anticipated to be performed by Water Systems Consulting Team.
2.4 Design Extraction and Treatment Wells (two locations) -Estimated at 10% of the total construction cost of Task 3.3. Work anticipated to be performed by Water Systems
Consulting Team.
2.5 Permitting -Estimated at 1.5% of the total construction cost of Task 3.1 and 3.3. Work anticipated to be performed by Water Systems Consulting Team and a City selected
environmental consultant. Assumes an IS/MND will be required prior to construction of the extraction wells.
3. Construction and Implementation
3.1 Monitoring Well Construction -Estimated construction cost is based on applying recent bidding information and applying engineering judgment for the construction of up to
12 monitoring wells (8 minimum). Costs based on sonic drilling method, and include permitting, traffic control, sound walls, waste disposal, drilling, construction, and well
development.
3.2 Monitoring Well Administration -Estimated at 12% of the total construction cost of Task 3.1, which includes monitoring well inspection, final design of well screening, and
general construction administration. Work anticipated to be performed by Water Systems Consulting Team.
3.3 Extraction and Treatment Well Construction -Estimated construction cost is based on amalgamating different cost estimating methods, including reviewing recent bidding
information, coordinating with suppliers and applying engineering judgement. Construction cost also escalated based on inflation rate of 3% average year over year to mid-2025,
which is the anticipated construction period. Construction anticipated to be awarded to two (2) independent construction contractors. One contractor will drill the well(s) and
another contractor will equip and install the treatment systems. Assumes the wells can be located on City owned property.
3.4 Extraction and Treatment Well Construction Administration -Estimated at 11% of the total construction costs of Task 3.3. Work anticipated to be performed by Water
Systems Consulting Team.
4. Monitoring and Performance
4.1 Monitoring and Performance -Includes field sampling and laboratory testing for the 12 monitoring wells (8 minimum) twice per year and includes preparation of summary
report. Budget estimate includes sampling for one year following construction.
5. Outreach
5.1 Outreach -Costs associated with this task were estimated using another project's estimated costs for similar work.
5.2 Technical Advisory Meetings -Budget based on attendance of six (6) 2-hour meetings and preparing materials for meeting
Page 653 of 1165
Page 654 of 1165
State Water Resources Control Board
January 24, 2024
City of San Luis Obispo
Attn: Aaron Floyd, Utilities Director
879 Morro Street
San Luis Obispo, CA 93401
Agreement Number: D2312550
Please review, and if appropriate, electronically sign the signature page of the Agreement via Adobe
Sign. Once electronically signed, the Agreement will be routed automatically to the next signer. You will
automatically receive a copy of the fully executed Agreement via Adobe Sign once the final signer has
signed. This Agreement cannot be considered binding by either party until executed by the State Water
Resources Control Board (State Water Board).
For the Funding Agreement to be executed by the State Water Board, the following items must also be
returned:
1. Opinion of General Counsel - The Opinion will need to be dated and signed on or after the date the
agreement is signed. Counsel can file and attach the letters and submit them back through Adobe.
PLEASE NOTE: VERY IMPORTANT TO SUCCESSFUL GRANT COMPLETION
Project funding may be jeopardized by not responding to this letter in a timely manner. If you
cannot comply with the ten (10) day turnaround, you must notify us by e-mail immediately with the
reason for the delay and an approximate date when you will be able to comply. Your immediate attention
and compliance with the request(s) in this letter is greatly appreciated.
If you have any questions, please contact Cassandra Fujii @ Cassandra.Fujii@waterboards.ca.gov (916)
322-6223.
GROUNDWATER IMPLEMENTATION GRANT
AGREEMENT NO. D2312550
by and between
CITY OF SAN LUIS OBISPO (“Recipient”)
AND
CALIFORNIA STATE WATER RESOURCES CONTROL BOARD (“State Water Board”)
for the purpose of the
CITY OF SAN LUIS OBISPO PCE PLUME CHARACTERIZATION (“Project”)
Section 79771 of the Water Code, and Resolution Nos. 2017-0075, 2021-0003, and
2023-0013.
PROJECT FUNDING AMOUNT: $6,607,850
ESTIMATED REASONABLE PROJECT COST: $6,607,850
ELIGIBLE WORK START DATE: MARCH 6, 2023
WORK COMPLETION DATE: FEBRUARY 1, 2026
FINAL REIMBURSEMENT REQUEST DATE: MARCH 1, 2026
RECORDS RETENTION END DATE: FEBRUARY 1, 2062
* -* /$")- ). /$*)0( -ѷ /+(3 &/ &.,&'Ҋ.Ҕ
City of San Luis Obispo
Agreement No.: D2312550
Page 2 of 46
1. The State Water Board and the Recipient mutually promise, covenant, and agree
to the terms, provisions, and conditions of this Agreement, including the following
Exhibits, which are attached hereto or are incorporated by reference:
• EXHIBIT A – SCOPE OF WORK AND SCHEDULE
• EXHIBIT B – FUNDING TERMS
• EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV
• EXHIBIT D – SPECIAL CONDITIONS
2. Party Contacts during the term of this Agreement are:
State Water Board City of San Luis Obispo
Section: Division of Financial Assistance
Name: Robin Guillot, Project Manager Name: Nick Teague, Water
Resources Program
Manager
Address: 1001 I Street, 17th Floor Address: 879 Morro Street
City,
State,
Zip:
Sacramento, CA 95814 City,
State,
Zip:
San Luis Obispo, CA 93401
Phone: (916) 319-8259 Phone: (805) 781-7217
Email: Robin.Guillot@waterboards.ca.gov Email: nteague@slocity.org
Each party may change its contact upon written notice to the other party. While
Party Contacts are contacts for day-to-day communications regarding Project
work, the Recipient must provide official communications and notices to the
Division’s Deputy Director.
3. Conditions precedent to this Agreement are set forth as follows:
(a) The Recipient must deliver to the Division a resolution authorizing this
Agreement and identifying its Authorized Representative by title.
(b) The Recipient must deliver an opinion of general counsel satisfactory to
the State Water Board’s counsel dated on or after the date that the
Recipient signs this Agreement.
4. The Recipient represents, warrants, and commits to the following as of the
Eligible Work Start Date and continuing thereafter for the term of this Agreement,
which shall be at least until the Records Retention End Date:
(a) The Recipient agrees to comply with all terms, provisions, conditions, and
commitments of this Agreement, including all incorporated documents.
City of San Luis Obispo
Agreement No.: D2312550
Page 3 of 46
(b) The execution and delivery of this Agreement, including all incorporated
documents, has been duly authorized by the Recipient. Upon execution
by both parties, this Agreement constitutes a valid and binding obligation
of the Recipient, enforceable in accordance with its terms, except as such
enforcement may be limited by law.
(c) None of the transactions contemplated by this Agreement will be or have
been made with an actual intent to hinder, delay, or defraud any present
or future creditors of the Recipient. The Recipient is solvent and will not
be rendered insolvent by the transactions contemplated by this
Agreement. The Recipient is able to pay its debts as they become due.
The Recipient maintains sufficient insurance coverage considering the
scope of this Agreement including, for example but not necessarily limited
to, general liability, automobile liability, workers compensation and
employer liability, and professional liability.
(d) The Recipient is in compliance with all State Water Board funding
agreements to which it is a party.
5. This Agreement, and any amendments hereto, may be executed and delivered in
any number of counterparts, each of which when delivered shall be deemed to
be an original, but such counterparts shall together constitute one
document. The parties may sign this Agreement, and any amendments hereto,
either by an electronic signature using a method approved by the State Water
Board or by a physical, handwritten signature. The parties mutually agree that
an electronic signature using a method approved by the State Water Board is the
same as a physical, handwritten signature for the purposes of validity,
enforceability, and admissibility.
City of San Luis Obispo
Agreement No.: D2312550
Page 4 of 46
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CITY OF SAN LUIS OBISPO STATE WATER RESOURCES CONTROL
BOARD
By: By:
Name: Aaron Floyd Name: Joe Karkoski
Title: Utilities Director Title: Deputy Director
Division of Financial Assistance
Date: Date:
Aaron Floyd
Jan 31, 2024 Feb 14, 2024
* -* /$")- ). /$*)0( -ѷ /+(3 &/ &.,&'Ҋ.Ҕ
City of San Luis Obispo
Agreement No.: D2312550
Page 5 of 46
Exhibit A
EXHIBIT A – SCOPE OF WORK AND SCHEDULE
A.1 PROJECT PURPOSE AND DESCRIPTION.
(a) The Project is for the benefit of the Recipient. The funding under this
Agreement shall be used for the purpose of preparing a fate and transport
groundwater model of Tetrachloroethylene (PCE) contamination, siting
and construction of extraction and treatment wells, and a network of
monitoring wells for the clean-up and prevention of PCE contamination in
drinking water supply wells in the San Luis Valley area of the San Luis
Obispo Groundwater Basin.
(b) The Useful Life of this Project is at least twenty (20) years, which may
consist of the length of time the Project must be operated and maintained
in order to achieve the environmental outcome(s) identified herein, and the
length of time that the environmental outcome of the Project will be
sustained after the Project is no longer operated or maintained.
A.2 SCOPE OF WORK.
(a) Project Management
(1) Provide all technical and administrative services as needed for
Project completion; monitor, supervise, and review all work
performed; and coordinate budgeting and scheduling to ensure the
Project is completed within the budget, on schedule, and in
accordance with approved procedures, applicable laws, and
regulations.
(2) Notify the Project Manager at least fifteen (15) working days in
advance of upcoming meetings, workshops, and trainings.
(3) Develop and update appropriately a detailed Project schedule
including key Project milestones, and submit to the Project
Manager.
(4) Conduct periodic and final site visits with the Project Manager.
(5) Conduct pre-, during, and post-implementation photo monitoring at
the Project site and submit to the Project Manager.
(b) General Compliance Requirements/Project Effectiveness and
Performance
(1) Submit Global Positioning System (GPS) information and survey
data for project site(s) and monitoring location(s) for this Project to
City of San Luis Obispo
Agreement No.: D2312550
Page 6 of 46
Exhibit A
the Project Manager. Submittal requirements for GPS data are
available at:
http://www.waterboards.ca.gov/water_issues/programs/grants_loan
s/grant_info/docs/gps.pdf
(2) Prepare a Monitoring and Reporting Plan (MRP) that addresses
pre-construction and post-construction performance monitoring for
the useful life of the Project. Submit the MRP to the Technical
Advisory Committee (TAC) for comment and the Project Manager
for approval. Any costs not supported by the approved MRP will
not be reimbursed. Reimbursement for monitoring costs incurred
prior to the MRP submittal will require approval by the Project
Manager. The MRP may be submitted as separate documents or in
one report and shall include the following:
(a) A Monitoring Plan (MP) that includes the following sections:
(1) Purpose: Describe the methods used to measure,
evaluate, and document performance of the
remediation and treatment system based on the
effectiveness of the remedy meeting the Project
purpose, objectives, and metrics developed in the
Project Assessment and Evaluation Plan (PAEP).
Describe the relation of the proposed monitoring
activities to any other monitoring activities conducted
by the Recipient in the Project area.
(2) Project Area: Provide a map and narrative
description of the anticipated area of plume capture,
location of the Project, and location of monitoring
wells and production wells that will be sampled to
achieve the purpose of the MP.
(3) Sampling Plan: Describe the methodology and
analytical methods used, selection of monitoring
locations, the frequency of monitoring, and the
process that will be used to make any necessary
changes to achieve the purpose of the MP.
(4) Field Procedures: Provide a description of field
procedures including sample collection methods,
equipment decontamination, sample identification and
handling, and documentation procedures.
(b) A PAEP which describes how the Project performance will
be assessed, evaluated, and reported. The PAEP must
City of San Luis Obispo
Agreement No.: D2312550
Page 7 of 46
Exhibit A
establish baseline groundwater quality conditions for the
Project area and detail the Project’s goals, desired
outcomes, and the methods of measuring and reporting
Project benefits.
(3) Monitor Project effectiveness in accordance with the approved
MRP.
(a) Conduct post-construction monitoring in accordance with the
approved MRP and include the results during the first year of
post-construction monitoring in the associated quarterly
progress report. A summary of all Project effectiveness
monitoring and data analysis shall be included in the Final
Project Report.
(4) Prepare, maintain, and implement a Quality Assurance Project Plan
(QAPP) in accordance with the United States Environmental
Protection Agency’s (USEPA) QAPP guidance documents (EPA
QA/G-5 and EPA QA/R-5). Water quality monitoring data include
physical or chemical monitoring of any groundwater. The QAPP
shall be submitted to the Project Manager for approval. A template
for the USEPA’s QAPP is available from the Project Manager.
(5) Prepare and upload all groundwater analytical data collected in
accordance with the MRP to the State Water Board’s
GeoTracker/GAMA system in Electronic Deliverable Format (EDF).
Groundwater samples include: monitoring well samples, borehole
samples, piezometer samples, and samples from drinking water
wells. Locational information for these sampling points shall be
submitted using the GEO_XY, GEO Z, and GEO WELL files.
Contact the Project Manager to obtain a Global ID prior to collecting
samples.
a) Upload data that was utilized in item (b)(2) to establish
baseline groundwater quality conditions for the Project area.
b) Upload other data related to the design and development of
the Project that is not presently available on
GeoTracker/GAMA. This may include reports, figures, maps
and geographic information system (GIS) data. Submit an
annotated list of reviewed data and reports to the Project
Manager.
City of San Luis Obispo
Agreement No.: D2312550
Page 8 of 46
Exhibit A
(c) Environmental Compliance and Permitting
(1) Complete documentation required under the California
Environmental Quality Act (CEQA) for the Project. Take all
required steps to prepare, circulate, and certify the required CEQA
document(s). Pursuant to item 14 of Exhibit C, no work that is
subject to CEQA may proceed under this Agreement until the State
Water Board has provided approval to proceed.
(a) Submit the draft CEQA document to the Project Manager for
comment, if applicable.
(b) Submit the final CEQA document to the Project Manager.
(c) Obtain written environmental clearance from the State Water
Board confirming the State Water Board has made its own
environmental findings and concurs that
implementation/construction may proceed.
(2) Obtain all public agency approvals, entitlements, and permits
required for Project implementation. If the Project is carried out on
lands not owned by the Recipient, the Recipient shall obtain
adequate rights of way for the useful life of the Project. Submit a
list and signed copies of such approvals, entitlements, and permits
to the Project Manager.
(d) Technical Advisory Committee
(1) Establish a TAC that includes representatives from the Division, the
Division of Drinking Water (DDW), and the Regional Water Board.
Submit the final list of TAC members, their roles and
responsibilities, and affiliations to the Project Manager.
(2) Convene a kickoff meeting to establish TAC goals and objectives,
formalize roles, and create a schedule for future meetings. Submit
a summary of the kickoff meeting to the Project Manager.
(3) Conduct additional TAC meetings in accordance with the schedule
developed in Item (d)(2) and submit agendas, meeting notes, and
sign-in sheets for each meeting to the Project Manager.
(e) Planning, Design and Engineering
(1) Conduct Groundwater Fate and Transport Modeling for the purpose
of siting monitoring wells and extraction wells that will clean up
groundwater contamination.
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Agreement No.: D2312550
Page 9 of 46
Exhibit A
(2) Prepare a Groundwater Fate and Transport Modeling Report
(Modeling Report) and submit to the TAC for comment and to the
Project Manager for approval. The Modeling Report shall include,
at a minimum, the following:
(a) Modeling details and results including, but not limited to,
particle tracking analysis, model calibration, sensitivity
analysis and pumping rates which are necessary to achieve
remedial action objectives.
(b) Description of the conceptual understanding on which the
model is based, how the model simulates components of the
natural system, and the underlying assumptions and
limitations.
(3) Prepare the sixty percent (60%) design plans and specifications
and submit to the TAC for comment and the Project Manager for
approval. The plans and specifications shall include at a minimum
the following components:
(a) Install a minimum of eight (8) new groundwater monitoring
wells.
(b) Install up to two (2) extraction wells and equip two (2)
extraction wells with a granular activated carbon (GAC)
groundwater treatment system with a minimum design flow
rate of 150 gpm.
(4) Complete the one hundred percent (100%) design plans and
specifications, prepare a summary identifying any changes from the
sixty percent (60%) plans, and submit both to the TAC for comment
and the Project Manager for approval.
(5) Complete the bid documents in accordance with the approved
design plans in (e)(4) and, after receiving all required approvals,
advertise the Project for bid. Submit the advertised bid documents
to the TAC and the Project Manager.
(f) Construction and Implementation
(1) Award the construction contract(s) and submit the Notice(s) to
Proceed and awarded contract(s) to the Project Manager.
(2) Construct the project in accordance with the approved design plans
and specifications in Item (e)(4), after obtaining environmental
clearance in Item (c)(1)(c) and the necessary approvals,
entitlements, and/or permits in Item (c)(2).
City of San Luis Obispo
Agreement No.: D2312550
Page 10 of 46
Exhibit A
(3) Submit any proposed changes that arise during construction that
may affect the Project’s benefits, schedule, or costs to the TAC for
comment, if applicable, and the Project Manager for approval prior
to implementation.
(4) Submit as-built drawings for components listed in Item (e)(3) and
provide a summary of changes from the approved design plans and
specifications in item (e)(4) that occurred during construction to the
TAC and the Project Manager.
(5) Prepare documents that address operation and maintenance of the
Project for its useful life and submit to the TAC and Project
Manager for comment. The documents shall include the following:
(a) An operations and maintenance plan.
(b) A testing and startup plan including initial, functional, and
performance testing.
(g) Public Outreach
(1) Develop outreach materials including flyers, posters, brochures,
and advertisements, and update the website and associated social
media web pages to include Project progress and outcomes.
Submit copies of the outreach materials and web links to the
Project Manager.
(2) Conduct a minimum of one (1) public workshop for stakeholders.
Submit the workshop materials, sign-in sheet(s), and photo
documentation of the workshop to the Project Manager.
Upon Completion of Construction, the Recipient must expeditiously initiate Project
operations.
A.3 PROGRESS REPORTS.
The Recipient must submit quarterly progress reports, using a format provided by
the Project Manager, within forty-five (45) days following the end of the calendar
quarter (March, June, September, and December) to the Project Manager.
Progress reports must provide a brief description of activities that have occurred,
milestones achieved, monitoring results (if applicable), and any problems
encountered in the performance of the work under this Agreement during the
applicable reporting period. Reporting is required even if no project-related
activities occurred during the reporting period. The Recipient must document all
activities and expenditures in progress reports, including work performed by
contractors.
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Agreement No.: D2312550
Page 11 of 46
Exhibit A
A.4 AS NEEDED REPORTS.
The Recipient must provide expeditiously, during the term of this Agreement, any
reports, data, and information reasonably required by the Division, including but
not limited to material that is necessary or appropriate for evaluation of the
funding program or to fulfill any reporting requirements of the state or federal
government.
A.5 FINAL REPORTS.
(a) At the conclusion of the Project, the Recipient must submit the
following to the Project Manager:
(1) Draft Final Project Report. Prepare and submit to the Project
Manager for review and comment a draft Final Project Report in a
format provided by the Project Manager that must include the
following information, as well as information set forth in the Scope
of Work, above:
a) Description of the water quality problem the Project sought to
address,
b) Description of the Project scope, cost, and schedule, with photo
documentation;
c) Discussion of the Project’s likelihood of successfully addressing
that water quality problem in the future, including an evaluation
and summary of relevant water quality data; and
d) Summary of lessons learned.
(2) Final Project Report. Prepare a Final Project Report that
addresses, to the extent feasible, comments made by the Project
Manager on the draft Final Project Report. Submit one (1)
reproducible master copy and an electronic copy.
(3) Final Project Summary. Prepare a brief summary of the information
contained in the Final Project Report, using a format provided by
the Project Manager and include accomplishments,
recommendations, and lessons learned, as appropriate.
(b) If the Recipient fails to submit a timely Final Project Report, the State
Water Board may stop processing pending or future applications for new
financial assistance, withhold reimbursements under this Agreement or
other agreements, and begin administrative proceedings.
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Agreement No.: D2312550
Page 12 of 46
Exhibit A
A.6 OPERATIONAL REPORTS.
(a) During the Useful Life of the Project, the Recipient must submit
operational reports to the Division that include detailed operational and
groundwater monitoring data as defined in the approved MRP and any
updates to the Modeling Report, Operations and Maintenance Plan, or
Pumping Plan.
(b) As set forth below, the Recipient must submit operational reports to the
Project Manager, the Regional Water Board, and the Division of Drinking
Water Section Chief (also known as the Regional Engineer), and upload
the reports to GeoTracker:
(1) For each of the first five (5) years following Work Completion (i.e.,
Years 1 through 5), the Recipient shall submit a total of four (4)
Operational Reports, consisting of three (3) quarterly Operational
Reports, and one (1) Annual Operational Report which provides
data and information for the fourth quarter and an annual
summary. The Quarterly and Annual Operational Reports shall be
submitted within forty-five (45) days following the end of each
calendar quarter (March, June, September, December), with the
first Quarterly Operational Report due no later than one hundred
thirty-five (135) days after Work Completion and the first Annual
Operational Report due no later than one (1) year and forty-five
(45) days after Work Completion.
(2) For the remaining Useful Life of the Project, the Recipient must
continue to submit Annual Operational Reports within forty-five (45)
days following the end of the fourth quarter (i.e., March, June,
September, or December, consistent with the established
timeframe for Annual Operational Report submittal).
A.7 SIGNAGE.
The Recipient must place a professionally prepared sign at least four (4) feet tall by
eight (8) feet wide made of ¾-inch-thick exterior grade plywood or other approved
material in a prominent location on the Project site and must maintain the sign in good
condition for the duration of Project implementation. The sign may include another
agency’s required information and must include, prominently displayed, the following
disclosure statement and color logos (available from the Division):
“Funding for this project has been provided in full or in part by Proposition 1 – the
Water Quality, Supply, and Infrastructure Improvement Act of 2014 through an
agreement with the State Water Resources Control Board.”
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Agreement No.: D2312550
Page 13 of 46
Exhibit A
A.8 FINAL PROJECT INSPECTION AND CERTIFICATION.
Upon completion of the Project, the Recipient must provide for a final inspection and
must certify that the Project has been completed in accordance with this Agreement,
any final plans and specifications submitted to the State Water Board, and any
amendments or modifications thereto. If the Project involves the planning, investigation,
evaluation, design, or other work requiring interpretation and proper application of
engineering, or other professionals, the final inspection and certification must be
conducted by a California Registered Civil Engineer or other appropriate California
registered professional. The results of the Final Inspection and Certification must be
submitted to the Project Manager.
A.9 SCHEDULE.
Failure to provide items by the due dates indicated in the table below may constitute a
material violation of this Agreement. The Project Manager may adjust the dates in the
“Estimated Due Date” column of this table, but Critical Due Date adjustments will
require an amendment to this Agreement. The Recipient must complete and submit all
work in time to be approved by the Division prior to the Work Completion Date. As
applicable for specific submittals, the Recipient must plan adequate time to solicit,
receive, and address comments prior to submitting the final submittal. The Recipient
must submit the final Reimbursement Request prior to the Final Reimbursement
Request Date set forth on the Cover Page.
As applicable for specific submittals, the Recipient shall plan adequate time to solicit,
receive, and address TAC comments prior to submitting the final deliverable.
Submittal Schedule
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
EXHIBIT A.2 - SCOPE OF WORK
(a) Project Management
(a)(2) Notification of Upcoming Meetings,
Workshops, and Trainings
15 Days Prior
(a)(3) Detailed Project Schedule 30 Days After
Execution
(a)(4) Periodic and Final Site Visits As Needed
(a)(5) Pre-, During, and Post-Construction
Photos
Ongoing
(b) General Compliance Requirements/Project Effectiveness and Performance
(b)(1) Global Positioning System (GPS)
Information
January 2026
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Agreement No.: D2312550
Page 14 of 46
Exhibit A
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
(b)(2) Monitoring and Reporting Plan (MRP) March 2024
(b)(2)(a) Monitoring Plan (MP) March 2024
(b)(2)(b) Project Assessment and Evaluation
Plan (PAEP)
February 2025
(b)(4) Quality Assurance Project Plan (QAPP) March 2024
(b)(5) GeoTracker Upload February 2025
(c) Environmental Compliance and Permitting
(c)(1)(a) Draft CEQA Document September 2024
(c)(1)(b) Final CEQA Document December 15,
2024
(c)(2) List and Signed Copies of Approvals,
Entitlements or Permits
January 2025
(d) Technical Advisory Committee (TAC)
(d)(1) List of TAC Members and Their Roles
and Responsibilities
Complete
(d)(2) Summary of the Kickoff Meeting February 2024
(d)(3) Agendas, Meeting Notes, and Sign-In
Sheets
Ongoing
(e) Planning, Design, and Engineering
(e)(2) Groundwater Fate and Transport
Modeling Report
February 2024
(e)(3) 60% Design Plans and Specifications August 2024
(e)(4) 100% Design Plans November 2024
(e)(5) Advertised Bid Documents December 2024
(f) Construction and Implementation
(f)(1) Notice(s) to Proceed January 2025
(f)(3) Proposed Changes As Needed
(f)(4) As-Built Drawings February 2026
(f)(5)(a) Operations and Maintenance
Management Plan
November 2025
(f)(5)(b) Testing and Startup Plan December 2025
(g) Public Outreach
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Agreement No.: D2312550
Page 15 of 46
Exhibit A
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
(g)(1) Outreach Materials (such as flyers,
posters, brochures, and
advertisements)
January 2025
(g)(2) Public Presentation Meeting Materials As Needed
REPORTS
A.3 Progress Reports Quarterly
A.4 As Needed Reports As Needed
A.5(a)(1) Draft Final Project Report December 31,
2025
A.5(a)(2) Final Project Report February 1,
2026
A.5(a)(3) Final Project Summary Before Work
Completion
Date
A.8 Final Project Inspection and
Certification
Before Work
Completion
Date
EXHIBIT B – FUNDING TERMS
B.7(e) Reimbursement Requests Quarterly
B.7(i) Final Reimbursement Request March 1, 2026
The Division may require corrective work to be performed prior to Project Completion.
Any work occurring after the Work Completion Date will not be reimbursed under this
Agreement.
The Recipient must deliver any request for amendment no fewer than 120 days prior to
the Work Completion date.
City of San Luis Obispo
Agreement No.: D2312550
Page 16 of 46
Exhibit B
EXHIBIT B – FUNDING TERMS
B.1 ESTIMATED REASONABLE COST AND PROJECT FUNDS.
The estimated reasonable cost of the total Project is set forth on the Cover Page of this
Agreement and is greater than or equal to the funding anticipated to be provided by the
State Water Board under this Agreement. Subject to the terms of this Agreement, the
State Water Board agrees to provide Project Funds not to exceed the amount of the
Project Funding Amount set forth on the Cover Page of this Agreement.
B.2 RECIPIENT CONTRIBUTIONS.
The Recipient must pay any and all costs connected with the Project including, without
limitation, any and all Project Costs. If the Project Funds are not sufficient to pay the
Project Costs in full, the Recipient must nonetheless complete the Project and pay that
portion of the Project Costs in excess of available Project Funds, and shall not be
entitled to any reimbursement therefor from the State Water Board.
B.3 DOUBLE PAYMENT PROHIBITION.
If the Recipient recovers funds from any responsible parties, the Recipient shall
immediately notify the Division. The amount of this Agreement may be reduced to
reflect the recovered funds.
B.4 VERIFIABLE DATA.
Upon request by the Division, the Recipient must submit verifiable data to support
deliverables specified in the Scope of Work. The Recipient’s failure to comply with this
requirement may be construed as a material breach of this Agreement.
City of San Luis Obispo
Agreement No.: D2312550
Page 17 of 46
Exhibit B
B.5 BUDGET COSTS.
Budget costs are contained in the Project Cost table below:
LINE ITEM PROJECT
FUNDING
AMOUNT
TOTAL
PROJECT
COSTS
Direct Project Administration
Costs $127,200 $127,200
Planning/Design/Engineering/
Environmental $731,100 $731,100
Construction/Implementation $5,676,300 $5,676,300
Monitoring/Performance $40,000 $40,000
Education/Outreach $33,250 $33,250
TOTAL $6,607,850 $6,607,850
Indirect Costs are ineligible for funding under this Agreement.
The Recipient is prohibited from requesting disbursement amounts that represent the
Recipient’s mark-ups to costs invoiced or otherwise requested by consultants or
contractors.
B.6 LINE ITEM ADJUSTMENTS.
(a) Subject to the prior review and approval of the Project Manager,
adjustments between existing line items may be used to defray allowable
direct costs up to fifteen percent (15%) of the total Project Funding
Amount, including any amendment(s) thereto. Line Item adjustments
approved by the Project Manager must be de minimis, less than fifteen
percent (15%) of the total Project Funding Amount, and may not include
any changes to the Scope of Work. Line item adjustments in excess of
fifteen percent (15%) or line item adjustments that result in a change to
the Scope of Work will require an Agreement amendment. Upon request
by the Project Manager, supporting documents for professional and
administrative services must include the employees’ names,
classifications, labor rates, hours worked, and descriptions of the tasks
performed.
(b) The Recipient may submit a request for an adjustment in writing to the
Project Manager. Such adjustment may not increase or decrease the total
Project Funding Amount. The Recipient shall submit a copy of the original
Agreement budget reflecting the requested changes and shall note
proposed changes by striking out the original amount(s) followed with
proposed change(s) in bold and underlined. Budget adjustments deleting
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Agreement No.: D2312550
Page 18 of 46
Exhibit B
a budget line item or adding a new budget line item shall require a formal
amendment. The Division may also propose budget adjustments.
(c) The sum of adjusted line items shall not exceed the total budget amount.
B.7 REIMBURSEMENT PROCEDURE.
Except as may be otherwise provided in this Agreement, reimbursement of Project
Funds will be made as follows:
(a) Upon execution and delivery of this Agreement, the Recipient may submit
a Reimbursement Request for eligible Project Costs as specified in this
Exhibit through submission to the State Water Board using the
Reimbursement Request forms provided by the Project Manager. To be
eligible for reimbursement, Project Costs, including planning and design
allowance costs, must have been incurred in compliance with all
applicable requirements, including the state cross-cutting requirements
listed in Exhibit D.
(b) Reimbursement Requests must contain the following information:
(1) The date of the request;
(2) The time period covered by the request, i.e., the term “from” and
“to”;
(3) The total amount requested;
(4) Original signature and date (in ink) or electronic signature,
consistent with the State Water Board’s approved procedures, of
the Recipient’s Authorized Representative or his/her designee; and
(5) The Final Reimbursement Request must be clearly marked “FINAL
REIMBURSEMENT REQUEST” and must be submitted NO LATER
THAN the Final Reimbursement Request Date.
(c) The Recipient may sign Reimbursement Requests either by an electronic
signature consistent with the State Water Board’s approved procedures or
by a physical, handwritten signature. The parties mutually agree that an
electronic signature consistent with the State Water Board’s approved
procedures is the same as a physical, handwritten signature for the
purposes of validity, enforceability, and admissibility.
(d) Reimbursement Requests must be itemized based on the line items
specified in the budget in this Exhibit. Reimbursement Requests must be
complete, signed by the Recipient’s Authorized Representative or his/her
designee, and addressed to the Project Manager as set forth in this
Agreement. Reimbursement Requests submitted in any other format than
City of San Luis Obispo
Agreement No.: D2312550
Page 19 of 46
Exhibit B
the one provided by the State Water Board will cause a Reimbursement
Request to be disputed. In the event of such a dispute, the Project
Manager will notify the Recipient. Payment will not be made until the
dispute is resolved and a corrected Reimbursement Request is submitted.
The Project Manager has the responsibility for approving Reimbursement
Requests. Project Costs incurred prior to the Eligible Work Start Date of
this Agreement will not be reimbursed.
(e) Project Funds must be requested quarterly via Reimbursement Request
for eligible costs incurred during the reporting period of the corresponding
Progress Report, describing the activities and expenditures for which the
reimbursement is being requested. Each Reimbursement Request must
be accompanied by a Progress Report. Failure to provide timely
Reimbursement Requests may result in such requests not being honored.
(f) The Recipient agrees that it will not submit any Reimbursement Requests
that include any Project Costs until such costs have been incurred and are
currently due and payable by the Recipient, although the actual payment
of such costs by the Recipient is not required as a condition of
reimbursement. Supporting documentation (e.g., receipts) must be
submitted with each Reimbursement Request as well as to support Match
Contributions claimed, if any. The amount requested for personnel costs
must include a calculation formula (i.e., hours or days worked times the
hourly or daily rate = total amount claimed). Reimbursement of Project
Funds will be made only after receipt of a complete, adequately
supported, properly documented and accurately addressed
Reimbursement Request.
(g) The Recipient will not seek reimbursement of any Project Costs that have
been reimbursed from other funding sources.
(h) The Recipient must use Project Funds within thirty (30) days of receipt to
reimburse contractors, vendors, and other Project Costs. Any interest
earned on Project Funds must be reported to the State Water Board and
will either be required to be returned to the State Water Board or deducted
from future reimbursements. In the event that the Recipient fails to
disburse Project Funds to contractors or vendors within thirty (30) days
from receipt of the Project Funds, the Recipient must immediately return
such Project Funds to the State Water Board. Interest shall accrue on
such Project Funds from the date of reimbursement through the date of
mailing of Project Funds to the State Water Board. If the Recipient held
such Project Funds in interest-bearing accounts, any interest earned on
the Project Funds shall also be due to the State Water Board.
(i) The Recipient must submit its final Reimbursement Request no later than
the Final Reimbursement Request Date specified herein. If the Recipient
City of San Luis Obispo
Agreement No.: D2312550
Page 20 of 46
Exhibit B
fails to do so, then the undisbursed balance of this Agreement may be
deobligated.
(j) The Recipient agrees that it will not request a reimbursement unless that
cost is allowable, reasonable, and allocable.
(k) Notwithstanding any other provision of this Agreement, no reimbursement
shall be required at any time or in any manner that is in violation of or in
conflict with federal or state laws, policies, or regulations.
(l) The Recipient agrees that it shall not be entitled to interest earned on
undisbursed Project Funds.
(m) The Recipient must include any other documents or requests required or
allowed under this Agreement.
(n) Notwithstanding any other provision of this Agreement, the Recipient
agrees that the State Water Board may retain an amount equal to ten
percent (10%) of the Project Funding Amount until Project Completion.
Any retained amounts due to the Recipient will be promptly disbursed to
the Recipient, without interest, upon Project Completion.
B.8 REVERTING FUNDS AND DISENCUMBRANCE.
In the event the Recipient does not submit Reimbursement Requests for all funds
encumbered under this Agreement timely, any remaining funds revert to the State. The
State Water Board may notify the Recipient that the project file is closed, and any
remaining balance will be disencumbered and unavailable for further use under the
Agreement.
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Agreement No.: D2312550
Page 21 of 46
Exhibit C
EXHIBIT C – GENERAL TERMS AND CONDITIONS 2019-NOV
GENERAL TERMS AND CONDITIONS 2019-NOV is posted at
https://www.waterboards.ca.gov/water_issues/programs/grants_loans/general_terms.html
and replicated below:
DEFINITIONS. Unless otherwise specified in this Agreement, each capitalized term used
in this Agreement has the following meaning:
• “Agreement” means this agreement, including all exhibits and attachments hereto.
• “Cover Page” means the front page of this Agreement.
• “Days” means calendar days unless otherwise expressly indicated.
• “Deputy Director” means the Deputy Director of the Division.
• “Division” means the Division of Financial Assistance of the State Water Board or
any other division or unit of the State Water Board authorized to administer this
Agreement.
• “Event of Default” means the occurrence of any of the following events:
a) A representation or warranty made by or on behalf of the Recipient in this
Agreement or in any document furnished by or on behalf of the Recipient to
the State Water Board pursuant to this Agreement shall prove to have been
inaccurate, misleading or incomplete in any material respect;
b) Failure by the Recipient to observe and perform any covenant, condition, or
provision in this Agreement, which failure shall continue for a period of time,
to be determined by the Division;
c) Initiation of proceedings seeking arrangement, reorganization, or any other
relief under any applicable bankruptcy, insolvency, or other similar law; the
appointment of or taking possession of the Recipient’s property by a receiver,
liquidator, assignee, trustee, custodian, conservator, or similar official; the
Recipient’s entering into a general assignment for the benefit of creditors; the
initiation of resolutions or proceedings to terminate the Recipient’s existence,
or any action in furtherance of any of the foregoing;
d) A determination pursuant to Gov. Code section 11137 that the Recipient has
violated any provision in Article 9.5 of Chapter 1 of Part 1 of Division 3 of Title
2 of the Government Code; or
e) Loss of the Recipient’s rights, licenses, permits, or privileges necessary for
the Project, or the occurrence of any material restraint on the Recipient’s
enterprise by a government agency or court order.
City of San Luis Obispo
Agreement No.: D2312550
Page 22 of 46
Exhibit C
• “Final Reimbursement Request Date” means the date set forth as such on the Cover
Page of this Agreement, after which date, no further reimbursements or
disbursements may be requested.
• “Fiscal Year” means the period of twelve (12) months terminating on June 30 of any
year.
• “GAAP” means generally accepted accounting principles, the uniform accounting
and reporting procedures set forth in publications of the American Institute of
Certified Public Accountants or its successor, or by any other generally accepted
authority on such procedures, and includes, as applicable, the standards set forth by
the Governmental Accounting Standards Board or its successor, or the Uniform
System of Accounts, as adopted by the California Public Utilities Commission for
water utilities.
• “Material Obligation” means an obligation of the Recipient that is material to this
transaction.
• “Party Contact” means, for the Recipient, the Authorized Representative of the
Recipient or any designee of the Authorized Representative, and, for the State
Water Board, the Division staff set forth in Section 2 of this Agreement.
• “Project” means the Project funded by this Agreement as described in Exhibits A and
B and in the documents incorporated by reference herein.
• “Project Completion” means, as determined by the Division, that the Project is
complete to the reasonable satisfaction of the Division.
• “Project Costs” means the incurred costs of the Recipient which are eligible for
funding under this Agreement, pursuant to applicable statutes, policy, regulations, or
guidelines.
• “Project Funding Amount” means the maximum amount payable under this
Agreement, as set forth on the Cover Page.
• “Project Funds” means all moneys disbursed to the Recipient by the State Water
Board for eligible Project Costs pursuant to this Agreement.
• “Project Manager” means the person designated by the State Water Board to
manage performance of this Agreement. The Project Manager is set forth on the
Cover Page.
• “Records Retention End Date” means the last date that the Recipient is obligated to
maintain records related to this Agreement and is set forth on the Cover Page of this
Agreement.
City of San Luis Obispo
Agreement No.: D2312550
Page 23 of 46
Exhibit C
• “Regional Water Quality Control Board” or “Regional Water Board” means the
appropriate Regional Water Quality Control Board.
• “Reimbursement Period” means the period during which Project Funds may be
disbursed.
• “Reimbursement Request” means the Recipient’s request for Project Funds from the
State Water Board as set forth in Exhibit B.
• “State” means State of California.
• “State Water Board” means the State Water Resources Control Board.
• “Work Completion” means the Recipient’s submittal of all work set forth under
Exhibit A for review and approval by the Division.
• “Work Completion Date” means the date set forth on the Cover Page of this
Agreement and is the last date on which Project Costs may be incurred under this
Agreement.
• “Year” means calendar year unless otherwise expressly indicated.
1. ACCESS, INSPECTION, AND PUBLIC RECORDS. The Recipient must ensure that the
State Water Board, the State Auditor, or any authorized representative of the foregoing,
will have safe and suitable access to the Project site at all reasonable times through the
Records Retention End Date or useful life of the Project, whichever is longer. The
Recipient acknowledges that, except for a subset of information regarding
archaeological records and personally identifiable information, the Project records and
locations may be public records, including but not limited to all of the submissions
accompanying the application, all of the documents incorporated into this Agreement by
reference, and all reports, Reimbursement Requests, and supporting documentation
submitted hereunder.
2. ACCOUNTING AND AUDITING STANDARDS; FINANCIAL MANAGEMENT
SYSTEMS. The Recipient must maintain GAAP-compliant project accounts, including
GAAP requirements relating to the reporting of infrastructure assets. Without limitation
of the requirement to maintain Project accounts in accordance with GAAP, the Recipient
must:
(a) Establish an official file for the Project which adequately documents all significant
actions relative to the Project;
(b) Establish separate accounts which will adequately and accurately depict all amounts
received and expended on the Project, including all Project Funds received under
this Agreement;
City of San Luis Obispo
Agreement No.: D2312550
Page 24 of 46
Exhibit C
(c) Establish separate accounts which will adequately depict all income received which
is attributable to the Project, specifically including any income attributable to Project
Funds disbursed under this Agreement;
(d) Establish an accounting system which will accurately depict final total costs of the
Project if authorized under this Agreement;
(e) Establish such accounts and maintain such records as may be necessary for the
State to fulfill federal reporting requirements, including any and all reporting
requirements under federal tax statutes or regulations; and
(f) If the Recipient uses its own employees, equipment, or resources for any phase of
the Project, accounts will be established which reasonably document all employee
hours charged to the Project and the associated tasks performed by each employee.
3. AMENDMENT. No amendment or variation of the terms of this Agreement shall be
valid unless made in writing and signed by both the Recipient and the Deputy Director
or designee and approved as required.
4. ASSIGNABILITY. This Agreement is not assignable by the Recipient, either in whole or
in part, without the consent of the State Water Board. Amendment of the Agreement
may be required.
5. AUDIT. The Division may call for an audit of financial information relative to the Project
if the Division determines that an audit is desirable to assure program integrity or if an
audit becomes necessary because of State or federal requirements. If an audit is called
for, the audit must be performed by a certified public accountant independent of the
Recipient and at the cost of the Recipient. The audit must be in the form required by
the Division. The Recipient must return, or ensure the return of, any audit
disallowances within 30 days.
6. BONDING. Where construction contractors are used, the Recipient must not authorize
construction to begin until each contractor has furnished a performance bond in favor of
the Recipient in the following amounts: faithful performance (100%) of contract value;
labor and materials (100%) of contract value. This requirement shall not apply to any
contract for less than $25,000.00.
7. COMPETITIVE BIDDING. Recipient must adhere to any applicable State law or local
ordinance for competitive bidding and applicable labor laws. If Recipient is a private
entity, any construction contracts related in any way to the Project must be let by
competitive bid procedures which assure award of such contracts to the lowest
responsive and responsible bidders. Recipient must not award a construction contract
until a summary of bids and identification of the selected lowest responsible bidder is
submitted to and approved in writing by the Division. Recipient must provide a full
explanation if Recipient is proposing to award a construction contract to anyone other
than the lowest responsible bidder.
City of San Luis Obispo
Agreement No.: D2312550
Page 25 of 46
Exhibit C
8. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REQUIREMENTS. The
Recipient must, at all times, comply with and require its contractors and subcontractors
to comply with all applicable federal and State laws, rules, guidelines, regulations, and
requirements and with provisions of the adopted environmental mitigation plan, if any,
for the useful life of the Project.
9. COMPUTER SOFTWARE. The Recipient certifies that it has appropriate systems and
controls in place to ensure that State funds will not be used in the performance of this
Agreement for the acquisition, operation or maintenance of computer software in
violation of copyright laws.
10. CONFLICT OF INTEREST. The Recipient certifies that it, its owners, officers, directors,
agents, representatives, and employees are in compliance with applicable State and
federal conflict of interest laws and will remain in compliance for the useful life of the
Project. Any service provider or contractor with which the Recipient contracts must not
have any role or relationship with the Recipient, that, in effect, substantially limits the
Recipient's ability to exercise its rights, including cancellation rights, under the contract,
based on all the facts and circumstances. Public entities are required to have adopted
conflict of interest codes and may be required to provide documentation of those codes
to the Division.
11. DATA MANAGEMENT. The Recipient will undertake appropriate data management
activities so that Project data can be incorporated into statewide data systems.
12. DEBARRED, DISQUALIFIED, OR EXCLUDED CONTRACTORS. The Recipient must
not contract or allow subcontracting with excluded parties. The Recipient must not
contract with any party who is debarred or suspended or otherwise excluded from or
ineligible for participation in any work overseen, directed, funded, or administered by the
State Water Board program for which this funding is authorized. For any work related to
this Agreement, the Recipient must not contract with any individual or organization on
the State Water Board’s List of Disqualified Businesses and Persons that is identified as
debarred or suspended or otherwise excluded from or ineligible for participation in any
work overseen, directed, funded, or administered by the State Water Board program for
which funding under this Agreement is authorized. The State Water Board’s List of
Disqualified Businesses and Persons is located at
http://www.waterboards.ca.gov/water_issues/programs/enforcement/fwa/dbp.shtml
13. DRUG-FREE WORKPLACE. The Recipient certifies that it will provide a drug-free
workplace in compliance with the Drug-Free Workplace Act (Gov. Code. §§ 8350-8357).
The Recipient shall publish a statement notifying employees that the unlawful
manufacture, distribution, dispensation, possession, or use of a controlled substance is
prohibited in the Recipient’s workplace and specifying the actions to be taken against
employees for violations of the prohibition. The Recipient shall establish a drug-free
awareness program to inform employees about the dangers of drug abuse in the
workplace, the Recipient’s policy of maintaining a drug-free workplace, any available
drug counseling, rehabilitation and employee assistance programs, and penalties that
City of San Luis Obispo
Agreement No.: D2312550
Page 26 of 46
Exhibit C
may be imposed upon employees for drug abuse violations. The Recipient shall provide
that every employee who works on the Project receives a copy of the Recipient’s drug-
free workplace policy statement and agrees to abide by the terms of the statement as a
condition of employment on the Project.
14. ENVIRONMENTAL CLEARANCE. No work that is subject to California Environmental
Quality Act (CEQA) or the National Environmental Policy Act (NEPA) may proceed
under this Agreement until the State Water Board has provided approval to proceed.
Upon receipt and review of the Recipient’s environmental documents, the State Water
Board shall make the appropriate environmental findings before determining whether to
approve construction or implementation funding for the Project under this
Agreement. Providing approval for such construction or implementation funding is fully
discretionary. The State Water Board may require changes in the scope of work or
additional mitigation as a condition to providing construction or implementation funding
under this Agreement. Recipient shall not perform any work subject to CEQA and/or
NEPA before the State Water Board completes its environmental review and specifies
any changes in scope or additional mitigation that may be required. Proceeding with
work subject to CEQA and/or NEPA without approval by the State Water Board shall
constitute a breach of a material provision of this Agreement. If this Project includes
modification of a river or stream channel, the Recipient must fully mitigate
environmental impacts resulting from the modification. The Recipient must provide
documentation that the environmental impacts resulting from such modification will be
fully mitigated considering all of the impacts of the modification and any mitigation,
environmental enhancement, and environmental benefit resulting from the Project, and
whether, on balance, any environmental enhancement or benefit equals or exceeds any
negative environmental impacts of the Project.
15. FINAL REIMBURSEMENT REQUEST. The Recipient agrees to ensure that its final
Reimbursement Request is received by the Division no later than the Final
Reimbursement Request Date, unless prior approval has been granted by the Division.
If the final Reimbursement Request is not received timely, the undisbursed balance of
this Agreement may be deobligated.
16. FRAUD AND MISUSE OF PUBLIC FUNDS. All requests for disbursement must be
accurate and signed by the Recipient or its Authorized Representative under penalty of
perjury. All costs submitted pursuant to this Agreement must only be for the work or
tasks set forth in this Agreement. The Recipient must not submit any invoice containing
costs that are ineligible or have been reimbursed from other funding sources unless
required and specifically noted as such (i.e., match costs). Any costs for which the
Recipient is seeking reimbursement shall not be reimbursed from any other
source. Double or multiple billing for time, services, or any other cost is improper and
will not be compensated. Any suspected occurrences of fraud, forgery, embezzlement,
theft, or any other misuse of public funds may result in suspension of disbursements
and, notwithstanding any other section in this Agreement, the termination of this
Agreement requiring the immediate repayment of all funds disbursed
hereunder. Additionally, the Deputy Director of the Division may request an audit and
City of San Luis Obispo
Agreement No.: D2312550
Page 27 of 46
Exhibit C
refer the matter to the Attorney General’s Office or the appropriate district attorney’s
office for criminal prosecution or the imposition of civil liability.
17. FUNDING CONTINGENCY. The State Water Board’s disbursement of funds hereunder
is contingent on the Recipient’s compliance with the terms and conditions of this
Agreement. The State Water Board's obligation to disburse funds is contingent upon
the availability of sufficient funds to permit the disbursements provided for herein. If
sufficient funds are not available for any reason, including but not limited to failure of the
federal or State government to appropriate funds necessary for disbursement of funds,
the State Water Board shall not be obligated to make any disbursements to the
Recipient under this Agreement. If this Agreement’s funding for any fiscal year expires
due to reversion or is reduced, substantially delayed, or deleted by the Budget Act, by
Executive Order, or by order or action of the Department of Finance, the State Water
Board has the option to either cancel this Agreement with no liability accruing to the
State Water Board, or offer an amendment to the Recipient to reflect the reduced
amount. This provision shall be construed as a condition precedent to the obligation of
the State Water Board to make any disbursements under this Agreement. Nothing in
this Agreement shall be construed to provide the Recipient with a right of priority for
disbursement over any other entity. If any disbursements due the Recipient under this
Agreement are deferred because sufficient funds are unavailable, it is the intention of
the State Water Board that such disbursement will be made to the Recipient when
sufficient funds do become available, but this intention is not binding.
18. GOVERNING LAW. This Agreement is governed by and shall be interpreted in
accordance with the laws of the State of California.
19. RECIPIENT’S SHARE. The Recipient agrees that it will provide for the payment of its
full share, if any share is required, of Project Costs and that all costs connected with the
Project will be timely paid by the Recipient.
20. INDEMNIFICATION AND STATE REVIEWS. The parties agree that review or approval
of Project plans and specifications by the State Water Board is for administrative
purposes only, including conformity with application and eligibility criteria, and expressly
not for the purposes of design defect review or construction feasibility, and does not
relieve the Recipient of its responsibility to properly plan, design, construct, operate, and
maintain the Project. To the extent permitted by law, the Recipient agrees to indemnify,
defend, and hold harmless the State Water Board and any trustee, and their officers,
employees, and agents for the Bonds, if any (collectively, "Indemnified Persons"),
against any loss or liability arising out of any claim or action brought against any
Indemnified Persons from and against any and all losses, claims, damages, liabilities, or
expenses, of every conceivable kind, character, and nature whatsoever arising out of,
resulting from, or in any way connected with (1) the Project or the conditions,
occupancy, use, possession, conduct, or management of, work done in or about, or the
planning, design, acquisition, installation, or construction, of the Project or any part
thereof; (2) the carrying out of any of the transactions contemplated by this Agreement
or any related document; (3) any violation of any applicable law, rule or regulation, any
City of San Luis Obispo
Agreement No.: D2312550
Page 28 of 46
Exhibit C
environmental law (including, without limitation, the Federal Comprehensive
Environmental Response, Compensation and Liability Act, the Resource Conservation
and Recovery Act, the California Hazardous Substance Account Act, the Federal Water
Pollution Control Act, the Clean Air Act, the Toxic Substances Control Act, the
Occupational Safety and Health Act, the Safe Drinking Water Act, the California
Hazardous Waste Control Law, and California Water Code Section 13304, and any
successors to said laws), rule or regulation or the release of any toxic substance on or
near the Project; or (4) any untrue statement or alleged untrue statement of any material
fact or omission or alleged omission to state a material fact necessary to make the
statements required to be stated therein, in light of the circumstances under which they
were made, not misleading with respect to any information provided by the Recipient for
use in any disclosure document utilized in connection with any of the transactions
contemplated by this Agreement, except those arising from the gross negligence or
willful misconduct of the Indemnified Persons. The Recipient must also provide for the
defense and indemnification of the Indemnified Persons in any contractual provision
extending indemnity to the Recipient in any contract let for the performance of any work
under this Agreement, and must cause the Indemnified Persons to be included within
the scope of any provision for the indemnification and defense of the Recipient in any
contract or subcontract. To the fullest extent permitted by law, the Recipient agrees to
pay and discharge any judgment or award entered or made against Indemnified
Persons with respect to any such claim or action, and any settlement, compromise or
other voluntary resolution. The provisions of this section survive the term of this
Agreement.
21. INDEPENDENT ACTOR. The Recipient, and its agents and employees, if any, in the
performance of this Agreement, shall act in an independent capacity and not as officers,
employees, or agents of the State Water Board.
22. INSPECTION. Throughout the useful life of the Project, the State Water Board shall
have the right to inspect the Project area to ascertain compliance with this Agreement.
23. INTEGRATION. This Agreement constitutes the complete and final agreement between
the parties. No oral or written understanding or agreement not incorporated in this
Agreement shall be binding on either party.
24. LIENS. The Recipient must not make any pledge of or place any lien on the Project or
Project assets except upon consent of the Division.
25. NO DISCRIMINATION. The Recipient must comply with Government Code section
11135 and the implementing regulations (Cal. Code Regs, tit. 2, § 11140 et seq.),
including, but not limited to, ensuring that no person is unlawfully denied full and equal
access to the benefits of, or unlawfully subjected to discrimination in the operation of,
the Project on the basis of sex, race, color, religion, ancestry, national origin, ethnic
group identification, age, mental disability, physical disability, medical condition, genetic
information, marital status, or sexual orientation as such terms are defined under
California law, for as long as the Recipient retains ownership or possession of the
City of San Luis Obispo
Agreement No.: D2312550
Page 29 of 46
Exhibit C
Project. If Project Funds are used to acquire or improve real property, the Recipient
must include a covenant of nondiscrimination running with the land in the instrument
effecting or recording the transfer of such real property. The Recipient must comply with
the federal American with Disabilities Act of 1990 and implementing regulations as
required by Government Code section 11135(b). The Recipient’s obligations under this
section shall survive the term of this Agreement. During the performance of this
Agreement, Recipient and its contractors and subcontractors must not unlawfully
discriminate, harass, or allow harassment against any employee or applicant for
employment because of sex, race, color, ancestry, religious creed, national origin,
sexual orientation, physical disability (including HIV and AIDS), mental disability,
medical condition (cancer), age (over 40), marital status, denial of family care leave, or
genetic information, gender, gender identity, gender expression, or military and veteran
status. The Recipient, its contractors, and subcontractors must ensure that the
evaluation and treatment of their employees and applicants for employment are free
from such discrimination and harassment. The Recipient, its contractors, and
subcontractors must comply with the provisions of the Fair Employment and Housing
Act and the applicable regulations promulgated thereunder. (Gov. Code, §12990,
subds. (a)-(f) et seq.;Cal. Code Regs., tit. 2, § 7285 et seq.) Such regulations are
incorporated into this Agreement by reference and made a part hereof as if set forth in
full. The Recipient, its contractors, and subcontractors must give written notice of their
obligations under this clause to labor organizations with which they have a collective
bargaining or other agreement. The Recipient must include the nondiscrimination and
compliance provisions of this clause in all subcontracts to perform work under this
Agreement.
26. NO THIRD-PARTY RIGHTS. This Agreement creates no rights in and grants no
remedies to any third party as a beneficiary of this Agreement.
27. NO OBLIGATION OF THE STATE. Any obligation of the State Water Board herein
contained shall not be an obligation, debt, or liability of the State and any such
obligation shall be payable solely out of the moneys encumbered pursuant to this
Agreement.
28. NON-WAIVER. Nothing in this Agreement shall affect or impair the Recipient’s
obligation to undertake work under this Agreement or shall affect or impair the right of
the State Water Board to bring suit to enforce such work. No delay or omission of the
State Water Board in the exercise of any right arising upon an Event of Default shall
impair any such right or be construed to be a waiver of any such Event of Default. The
State Water Board may exercise from time to time and as often as shall be deemed
expedient by the State Water Board, any remedy or right provided by law or pursuant to
this Agreement. Any waiver of rights by the State Water Board with respect to a default
or other matter arising under this Agreement at any time shall not be considered a
waiver of rights with respect to any other default or matter.
29. OTHER FUNDING SOURCES; INCOME RESTRICTIONS. If funding for Project Costs
is made available to the Recipient from sources other than this Agreement, the
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Agreement No.: D2312550
Page 30 of 46
Exhibit C
Recipient must notify the Division. The Recipient may retain such funding up to an
amount which equals the Recipient's contribution to Project costs. To the extent
allowed by requirements of other funding sources, excess funding must be remitted to
the State Water Board. The Recipient agrees that any refunds, rebates, credits, or other
amounts (including any interest thereon) accruing to or received by the Recipient as
related to this Agreement must be paid by the Recipient to the State Water Board, to the
extent that they are properly allocable to costs for which the Recipient has been
reimbursed by the State Water Board under this Agreement.
30. PERMITS AND AUTHORIZATIONS. Recipient must procure all permits, licenses and
other authorizations necessary to accomplish the work contemplated in this Agreement,
pay all charges and fees, and give all notices necessary and incidental to the due and
lawful prosecution of the work. Signed copies of any such permits or licenses must be
submitted to the Division before any construction or implementation begins.
Any contractors, outside associates, or consultants required by the Recipient in
connection with the services covered by this Agreement shall be limited to such
individuals or firms as were specifically identified and agreed to during negotiations for
this Agreement, or as are specifically authorized by the State Water Board’s Project
Manager during the performance of this Agreement. Any substitutions in, or additions
to, such contractors, associates, or consultants, shall be subject to the prior written
approval of the State Water Board’s Project Manager.
31. PREVAILING WAGES. If applicable, the Recipient agrees to be bound by all applicable
provisions of State Labor Code regarding prevailing wages. If applicable, the Recipient
must monitor all agreements subject to reimbursement from this Agreement to ensure
that the applicable prevailing wage provisions of the State Labor Code are being met.
Division of Industrial Relations (DIR) requirements may be found at:
http://www.dir.ca.gov/lcp.asp. For more information, please refer to DIR’s Public Works
Manual at: http://www.dir.ca.gov/dlse/PWManualCombined.pdf.
32. PRIOR COSTS. No costs incurred prior to the Eligible Work Start Date are eligible for
reimbursement.
33. PROFESSIONALS. The Recipient agrees that only licensed professionals will be used
to perform services under this Agreement where such services are called for. All
technical reports required pursuant to this Agreement that involve planning,
investigation, evaluation, design, or other work requiring interpretation and proper
application of engineering, architectural, or geologic sciences, shall be prepared by or
under the direction of persons registered to practice in California pursuant to Business
and Professions Code, sections 5536.1, 6735, 7835, and 7835.1. As required by these
laws, completed technical reports must bear the signature(s) and seal(s) of the
registered professional(s) in a manner such that all work can be clearly attributed to the
professional responsible for the work.
City of San Luis Obispo
Agreement No.: D2312550
Page 31 of 46
Exhibit C
34. RECORDS, INSPECTION, AUDITS, AND INTERVIEWS; RECORDS RETENTION. The
Recipient must maintain separate books, records and other material relative to the
Project and retain such books, records, subcontracts, and other material until at least
the Records Retention End Date set forth on the Cover Page of this Agreement. The
Recipient must require that such books, records, and other material are subject at all
reasonable times (at a minimum during normal business hours) to inspection, copying,
and audit by the State Water Board, the Department of Finance, the California State
Auditor, the Bureau of State Audits, or any authorized representatives of the
aforementioned, including federal funding agencies and their auditors, if any. The
Recipient must allow and must require its contractors to allow interviews during normal
business hours of any employees who might reasonably have information related to
such records. The Recipient agrees to include a similar duty regarding audit,
interviews, and records retention in any contract or subcontract related to the
performance of this Agreement. The provisions of this section survive the term of this
Agreement.
35. RELATED LITIGATION. Under no circumstances may the Recipient use funds from
any reimbursement under this Agreement to pay costs associated with any litigation the
Recipient pursues against the State Water Board or any Regional Water Board.
Regardless of the outcome of any such litigation, and notwithstanding any conflicting
language in this Agreement, the Recipient agrees to complete the Project funded by this
Agreement or to repay all of the disbursed funds plus interest.
36. REMEDIES. The State Water Board may enforce its rights under this Agreement by
any judicial proceeding, whether at law or in equity. None of the remedies available to
the State Water Board shall be exclusive of any other remedy, and each such remedy
shall be cumulative and in addition to every other remedy given hereunder or now or
hereafter existing at law or in equity. The State Water Board may exercise any remedy,
now or hereafter existing, without exhausting and without regard to any other remedy.
Any dispute of the Recipient is limited to the rights and remedies provided to the
Recipient under this Agreement and is subject to the procedures provided to the
Recipient under this Agreement.
37. REPORTS - AS NEEDED. The Recipient must provide expeditiously any reports, data,
and information reasonably required by the Division, including but not limited to material
necessary or appropriate for evaluation of the funding program or to fulfill any reporting
requirements of the State or federal government.
38. RESPONSIBILITY FOR WORK. The Recipient shall be responsible for all work and for
persons or entities engaged in work performed pursuant to this Agreement, including,
but not limited to, contractors, subcontractors, suppliers, and providers of services. The
Recipient shall be responsible for responding to any and all disputes arising out of its
contracts for work on the Project, including, but not limited to, payment disputes with
contractors and subcontractors. The State Water Board will not mediate disputes
between the Recipient and any other entity concerning responsibility for performance of
work.
City of San Luis Obispo
Agreement No.: D2312550
Page 32 of 46
Exhibit C
39. RIGHTS IN DATA. The Recipient agrees that all data, plans, drawings, specifications,
reports, computer programs, operating manuals, notes, and other written or graphic
work produced in the performance of this Agreement are subject to the rights of the
State as set forth in this section. The State shall have the right to reproduce, publish,
and use all such work, or any part thereof, in any manner and for any purposes
whatsoever and to authorize others to do so. If any such work is copyrightable, the
Recipient may copyright the same, except that, as to any work which is copyrighted by
the Recipient, the State reserves a royalty-free, nonexclusive, and irrevocable license to
reproduce, publish, and use such work, or any part thereof, and to authorize others to
do so, and to receive electronic copies from the Recipient upon request. The Recipient
may disclose, disseminate and use in whole or in part, any final form data and
information received, collected, and developed under this Agreement, subject to
appropriate acknowledgement of credit to the State Water Board for financial support.
The Recipient shall not utilize the materials for any profit-making venture or sell or grant
rights to a third party who intends to do so.
40. STATE WATER BOARD ACTION; COSTS AND ATTORNEY FEES. In the event of
litigation between the parties hereto arising from this Agreement, it is agreed that each
party shall bear its own costs and attorney fees.
41. STATUS QUO. If any action to enforce any right or exercise any remedy shall be
brought and either discontinued or determined adversely to the State Water Board, then
the State Water Board shall be restored to its former position, rights, and remedies as if
no such action had been brought.
42. TERMINATION, IMMEDIATE REPAYMENT, AND INTEREST: This Agreement may be
terminated by written notice at any time, at the option of the State Water Board, if:
a. the Recipient has received funds as a result of a material misrepresentation in
the funding application or other submitted document; or
b. upon violation by the Recipient of any material provision of this Agreement after
such violation has been called to the attention of the Recipient and after failure of
the Recipient to bring itself into compliance with the provisions of this Agreement
within a reasonable time as established by the State Water Board.
In the event of such termination, the Recipient agrees, upon demand, to immediately
repay to the State Water Board an amount equal to the amount of Project Funds
disbursed to the Recipient prior to such termination. In the event of termination, interest
shall accrue on all amounts due at the highest legal rate of interest from the date that
notice of termination is mailed to the Recipient to the date of full repayment by the
Recipient.
43. TIMING. Time is of the essence. The Recipient must expeditiously proceed with and
complete the Project. Failure to proceed according to the timelines set forth in this
Agreement may require the Recipient to repay to the State Water Board all disbursed
Project Funds.
City of San Luis Obispo
Agreement No.: D2312550
Page 33 of 46
Exhibit C
44. TRAVEL AND PER DIEM. No work or travel outside the State of California is permitted
under this Agreement unless the Division provides prior written authorization. No work
or travel outside the United States of America is authorized. Failure to comply with this
restriction may constitute an Event of Default and result in termination of this
Agreement. Any reimbursement for necessary travel and per diem shall be set
pursuant to and at rates not to exceed those set by the California Department of Human
Resources at http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx. as
of the date costs are incurred by the Recipient.
45. UNDISBURSED FUNDS. The Recipient is not entitled to interest earned on
undisbursed funds.
46. UNENFORCEABLE PROVISION; SEVERABILITY. In the event that any provision of
this Agreement is unenforceable or held to be unenforceable, then the parties agree
that all other provisions of this Agreement have force and effect and shall not be
affected thereby.
47. UNION ACTIVITIES: The Recipient hereby acknowledges the applicability of
Government Code sections 16645 through 16649 to this Agreement. The Recipient
certifies that none of the Project Funds will be used to assist, promote, or deter union
organizing. If the Recipient incurs costs or makes expenditures to assist, promote, or
deter union organizing, the Recipient will maintain records sufficient to show that no
reimbursement from Project Funds has been sought for these costs and the Recipient
shall provide those records to the Attorney General upon request.
48. VENUE. Any action arising out of this Agreement shall be filed and maintained in the
Superior Court in and for the County of Sacramento, California.
49. WAIVER AND RIGHTS OF THE STATE WATER BOARD. Any waiver of rights by the
State Water Board with respect to a default or other matter arising under this Agreement
at any time shall not be considered a waiver of rights with respect to any other default or
matter.
50. WATER CONSERVATION AND EFFICIENCY PROGRAMS: The Recipient
acknowledges that it has appropriate water conservation and efficiency programs in
place, and that this provision constitutes a condition of this Agreement. A web link with
examples of water conservation and efficiency programs is available at:
http://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/conservatio
n.shtml.
51. WATER DIVERSION AND USE: To the extent applicable, the Recipient has complied
with, and shall continue to comply with, the requirements of Water Code, division 2, part
5.1, section 5100 et seq. for filing statements of water diversion and use.
52. WITHHOLDING OF DISBURSEMENTS AND REIMBURSEMENTS. Notwithstanding
any other provision of this Agreement, the State Water Board may withhold all or any
portion of the Project Funds upon the occurrence of any of the following events:
City of San Luis Obispo
Agreement No.: D2312550
Page 34 of 46
Exhibit C
a) Failure of the Recipient to maintain reasonable progress on the Project as
determined by the Division;
b) Commencement of litigation or a judicial or administrative proceeding related to the
Project, or Recipient that the State Water Board determines may impair the timely
satisfaction of Recipient’s obligations under this Agreement;
c) Any investigation by State, local, or federal investigators or auditors, or a grand jury,
relating to the Recipient’s financial management, accounting procedures, or internal
fiscal controls;
d) A material adverse change in the condition of the Recipient, or the Project, that the
Division reasonably determines would materially impair the Recipient’s ability to
satisfy its obligations under this Agreement, or any other event that the Division
reasonably determines would materially impair the Recipient’s ability to satisfy its
obligations under this Agreement;
e) The Recipient’s material violation of, or threat to materially violate, any provision of
this Agreement;
f) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds
by the Recipient or its employees, or by its contractors or agents directly or indirectly
regarding the Project;
g) An event requiring notice under this Agreement; or
h) An Event of Default or an event that the Division determines may become an Event
of Default.
City of San Luis Obispo
Agreement No.: D2312550
Page 35 of 46
Exhibit D
EXHIBIT D – SPECIAL CONDITIONS
D.1 DEFINITIONS.
Each capitalized term used in this Agreement has the following meaning:
• "Authorized Representative" means the duly appointed representative of the
Recipient as set forth in the certified original of the Recipient’s authorizing
resolution that designates the Authorized Representative by title.
• "Completion of Construction" means the date that the work of building and erection
of the Project is substantially complete.
• “District Office” means District Office of the Division of Drinking Water of the
State Water Board.
• “Division of Drinking Water” means the Division of Drinking Water of the State
Water Board.
• “Eligible Work Start Date” means the date set forth on the Cover Page of this
Agreement, establishing the date on or after which any costs may be incurred
and eligible for reimbursement hereunder.
• “Event of Default” means, in addition to the meanings set forth in Exhibit C, the
occurrence of any of the following events:
f) A material adverse change in the condition of the Recipient, which the
Division reasonably determines would materially impair the Recipient’s
ability to satisfy its obligations under this Agreement.
g) Failure to operate the Project, unless the Division has given its approval
for such non-operation;
• “Guidelines” means the State Water Board’s “Proposition 1 Groundwater Grant
Program Guidelines” in effect as of the execution date of this Agreement.
• “Indirect Costs” means those costs that are incurred for a common or joint
purpose benefiting more than one cost objective and are not readily assignable
to the Project (i.e., costs that are not directly related to the Project). Examples of
Indirect Costs include, but are not limited to: central service costs; general
administration of the Recipient; non-project-specific accounting and personnel
services performed within the Recipient organization; depreciation or use
allowances on buildings and equipment; the costs of operating and maintaining
non-project-specific facilities; tuition and conference fees; generic overhead or
markup; and taxes.
City of San Luis Obispo
Agreement No.: D2312550
Page 36 of 46
Exhibit D
• "Initiation of Construction" means the date that notice to proceed with work is
issued for the Project, or, if notice to proceed is not required, the date of
commencement of building and erection of the Project.
• “Recipient” means City of San Luis Obispo.
• “Useful Life” means the economically useful life of the Project beginning at
Completion of Construction and is set forth in Exhibit A.
D.2 ADDITIONAL REPRESENTATIONS AND WARRANTIES.
(a) The Recipient has not made any untrue statement of a material fact in its
application for this financial assistance or omitted to state in its application
a material fact that makes the statements in its application not misleading.
(b) The Recipient agrees to fulfill all assurances, declarations,
representations, and commitments in its application, accompanying
documents, and communications filed in support of its request for funding
under this Agreement.
(c) The execution, delivery, and performance by the Recipient of this
Agreement, including all incorporated documents, do not violate any
provision of any law or regulation in effect as of the date of execution of this
Agreement by the Recipient, or result in any breach or default under any
contract, obligation, indenture, or other instrument to which the Recipient is a
party or by which the Recipient is bound as of the date of execution of this
Agreement by the Recipient.
(d) Except as set forth in this paragraph, there are, as of the date of execution
of this Agreement by the Recipient, no pending or, to the Recipient’s
knowledge, threatened actions, claims, investigations, suits, or
proceedings before any governmental authority, court, or administrative
agency which may materially affect the financial condition or operations of
the Recipient and/or the Project.
(e) There are no proceedings, actions, or offers by a public entity to acquire
by purchase or the power of eminent domain any of the real or personal
property related to or necessary for the Project.
(f) The Recipient is duly organized and existing and in good standing under
the laws of the State of California. The Recipient must at all times
maintain its current legal existence and preserve and keep in full force and
effect its legal rights and authority. Within the preceding ten (10) years,
the Recipient has not failed to demonstrate compliance with state or
federal audit disallowances.
City of San Luis Obispo
Agreement No.: D2312550
Page 37 of 46
Exhibit D
(g) Any financial statements or other financial documentation of Recipient
previously delivered to the State Water Board as of the date(s) set forth in
such financial statements or other financial documentation: (a) are
materially complete and correct; (b) present fairly the financial condition of
the Recipient; and (c) have been prepared in accordance with GAAP.
Since the date(s) of such financial statements or other financial
documentation, there has been no material adverse change in the
financial condition of the Recipient, nor have any assets or properties
reflected on such financial statements or other financial documentation
been sold, transferred, assigned, mortgaged, pledged or encumbered,
except as previously disclosed in writing by the Recipient and approved in
writing by the State Water Board.
(h) The Recipient is current in its continuing disclosure obligations associated
with its material debt, if any.
(i) The Recipient has no conflicting or material obligations, except as set forth
in this paragraph.
(j) The Recipient has sufficient real or personal property rights necessary for
the purposes of this Agreement, not subject to third party revocation,
which rights extend at least to the Records Retention End Date of this
Agreement, except as disclosed to the State Water Board. The Recipient
has disclosed to the State Water Board all proceedings, actions, or offers
of which the Recipient has knowledge or belief that may in any way affect
the Recipient’s ability to access or legally possess all of the property
necessary for the purpose of this Agreement, including any proceedings,
actions, or offers to lease, purchase, or acquire by eminent domain any of
the real or personal property related to or necessary for the Project.
(k) The Recipient legally possesses property access rights to any real or
personal property necessary for the purposes of this Agreement for which
the Recipient does not legally possess all real or personal property rights.
(l) The Recipient and its principals, contractors, and subcontractors, to the
best of the Recipient’s knowledge and belief, are not presently debarred,
suspended, proposed for debarment, declared ineligible, or otherwise
excluded from participation in any work overseen, directed, funded, or
administered by the State Water Board program for which this funding is
authorized; nor have they engaged or permitted the performance of
services covered by this Agreement from parties that are debarred or
suspended or otherwise excluded from or ineligible for participation in any
work overseen, directed, funded, or administered by the State Water
Board program for which this funding is authorized.
(m) [RESERVED].
City of San Luis Obispo
Agreement No.: D2312550
Page 38 of 46
Exhibit D
D.3 ACKNOWLEDGEMENTS.
The Recipient must include the following acknowledgement in any document, written
report, or brochure to be shared with the general public prepared in whole or in part
pursuant to this Agreement:
“Funding for this project has been provided in full or in part under
Proposition 1 – the Water Quality, Supply, and Infrastructure Improvement
Act of 2014 through an agreement with the State Water Resources
Control Board. The contents of this document do not necessarily reflect
the views and policies of the foregoing, nor does mention of trade names
or commercial products constitute endorsement or recommendation for
use.”
D.4 [RESERVED].
D.5 [RESERVED].
D.6 PROPERTY RIGHTS OPINION.
Prior to any request for reimbursement for construction costs related to the production
wells and associated well-head treatment under this Agreement, the Recipient must
deliver an opinion of counsel satisfactory to the Division’s counsel that the Recipient has
sufficient property rights in the Project property for the purposes contemplated in the
Agreement with respect to any property acquired for the purposes of the Project. No
construction funds related to the production wells and associated well-head treatment
will be disbursed under this Agreement until the Recipient satisfies this condition.
D.7 RETURN OF FUNDS.
Notwithstanding any other provision of this Agreement, if the Division determines that
an Event of Default has occurred, the Recipient may be required, upon demand, to
immediately return to the State Water Board any grant amounts received pursuant to
this Agreement and pay interest at the highest legal rate on all of the foregoing.
D.8 DAMAGES FOR BREACH OF TAX-EXEMPT STATUS.
In the event that any breach of any of the provisions of this Agreement by the Recipient
results in the loss of tax-exempt status for any bonds of the State or any subdivision or
agency thereof, or if such breach results in an obligation on the part of the State or any
subdivision or agency thereof to reimburse the federal government by reason of any
arbitrage profits, the Recipient must immediately reimburse the State or any subdivision
or agency thereof in an amount equal to any damages paid by or loss incurred by the
State or any subdivision or agency thereof due to such breach.
City of San Luis Obispo
Agreement No.: D2312550
Page 39 of 46
Exhibit D
D.9 OPERATION AND MAINTENANCE.
The Recipient shall sufficiently and properly staff, operate, and maintain the facility and
structures constructed or improved as part of the Project throughout the term of this
Agreement, consistent with the purposes of this Agreement. The Recipient assumes all
operations and maintenance costs of the facilities and structures; the State Water Board
shall not be liable for any cost of such maintenance, management or operation.
D.10 INSURANCE.
The Recipient will procure and maintain or cause to be maintained insurance on the
Project with responsible insurers, or as part of a reasonable system of self-insurance, in
such amounts and against such risks (including damage to or destruction of the Project)
as are usually covered in connection with systems similar to the Project. Such
insurance may be maintained by a self-insurance plan so long as such plan provides for
(i) the establishment by the Recipient of a separate segregated self-insurance fund in
an amount determined (initially and on at least an annual basis) by an independent
insurance consultant experienced in the field of risk management employing accepted
actuarial techniques and (ii) the establishment and maintenance of a claims processing
and risk management program.
In the event of any damage to or destruction of the Project caused by the perils covered
by such insurance, the net proceeds thereof shall be applied to the reconstruction,
repair or replacement of the damaged or destroyed portion of the Project. The
Recipient must begin such reconstruction, repair or replacement as expeditiously as
possible, and must pay out of such net proceeds all costs and expenses in connection
with such reconstruction, repair or replacement so that the same must be completed
and the Project must be free and clear of all claims and liens.
Recipient agrees that for any policy of insurance concerning or covering the
construction of the Project, it will cause, and will require its contractors and
subcontractors to cause, a certificate of insurance to be issued showing the State Water
Board, its officers, agents, employees, and servants as additional insured; and must
provide the Division with a copy of all such certificates prior to the commencement of
construction of the Project.
D.11 CONTINUOUS USE OF PROJECT; NO LEASE, SALE, TRANSFER OF
OWNERSHIP, OR DISPOSAL OF PROJECT.
The Recipient agrees that, except as provided in this Agreement, it will not abandon,
substantially discontinue use of, lease, sell, transfer ownership of, or dispose of all or a
significant part or portion of the Project during the Useful Life of the Project without prior
written approval of the Division. Such approval may be conditioned as determined to be
appropriate by the Division, including a condition requiring repayment of all disbursed
Project Funds or all or any portion of all remaining funds covered by this Agreement
together with accrued interest and any penalty assessments that may be due.
City of San Luis Obispo
Agreement No.: D2312550
Page 40 of 46
Exhibit D
D.12 NOTICE.
Upon the occurrence of any of the following events, the Recipient must notify the
Division’s Deputy Director and Project Manager by phone and email within the time
specified below:
(a) Within 24 hours, the Recipient must notify the Project Manager by phone
and by email and the Division by phone at (916) 327-9978 and by email,
CleanWaterSRF@waterboards.ca.gov, of any discovery of any potential
tribal cultural resource, archaeological or historical resource, or human
remains in the Project area. If there are any applicable provisions of a
mitigation, monitoring and reporting program adopted for the project, the
Recipient shall comply with such provisions. The Recipient must
coordinate with the Division to determine the appropriate course of action
necessary to mitigate potential impacts. In the event of the discovery of
human remains during construction of the Project, the Recipient shall
cease construction and take other action required by any applicable laws,
which may include but are not limited to Health and Safety Code, section
7050.5 and Public Resources Code, section 5097.98.
(b) [RESERVED].
(c) The Recipient must notify the Division and Party Contacts promptly of the
occurrence of any of the following events:
(1) Bankruptcy, insolvency, receivership or similar event of the
Recipient, or actions taken in anticipation of any of the foregoing;
(2) Change of ownership of the Project (no change of ownership may
occur without written consent of the Division);
(3) Loss, theft, damage, or impairment to Project;
(4) Events of Default, except as otherwise set forth in this section;
(5) A proceeding or action by a public entity to acquire the Project by
power of eminent domain.
(6) Any litigation pending or threatened with respect to the Project or
the Recipient’s technical, managerial or financial capacity or the
Recipient’s continued existence, or any judgment or court order
relating to such litigation that has a significant effect on the Project
or the Recipient;
(7) Consideration of dissolution, or disincorporation;
(8) Enforcement actions by or brought on behalf of the State Water
Board or Regional Water Board.
City of San Luis Obispo
Agreement No.: D2312550
Page 41 of 46
Exhibit D
(9) The discovery of a false statement of fact or representation made in
this Agreement or in the application to the Division for this financial
assistance, or in any certification, report, or request for
reimbursement made pursuant to this Agreement, by the Recipient,
its employees, agents, or contractors.
(10) Any substantial change in scope of the Project. The Recipient must
undertake no substantial change in the scope of the Project until
prompt written notice of the proposed change has been provided to
the Division and the Division has given written approval for the
change;
(11) Any circumstance, combination of circumstances, or condition,
which is expected to or does delay Work Completion for a period of
ninety (90) days or more;
(12) Cessation of all major construction work on the Project where such
cessation of work is expected to or does extend for a period of thirty
(30) days or more;
(13) Any Project monitoring, demonstration, or other implementation
activities required in this Agreement;
(14) Any public or media event publicizing the accomplishments and/or
results of this Agreement and provide the opportunity for
attendance and participation by state representatives with at least
ten (10) working days’ notice to the Division;
(15) Any event requiring notice to the Division pursuant to any other
provision of this Agreement;
(16) Failure to observe or perform any covenant or comply with any
condition in this Agreement;
(17) The award of the prime construction contract for the Project; and
the Initiation of Construction of the Project;
(18) An offer from a public entity to purchase the Project or any portion
thereof, or any of the real or personal property related to or
necessary for the Project; or
(19) Adverse tax opinions, the issuance by the Internal Revenue Service
or proposed or final determinations of taxability, Notices of
Proposed Issue (IRS Form 5701-TEB) or other material notices of
determinations with respect to the tax status of any tax-exempt
bonds;
(20) Work Completion and Project Completion.
City of San Luis Obispo
Agreement No.: D2312550
Page 42 of 46
Exhibit D
D.13 FRAUD, WASTE, AND ABUSE.
The Recipient shall prevent fraud, waste, and the abuse of Project Funds, and shall
cooperate in any investigation of such activities that are suspected in connection with
this Agreement. The Recipient understands that discovery of any evidence of
misrepresentation or fraud related to Reimbursement Requests, invoices, proof of
payment of invoices, or other supporting information including, but not limited to, double
or multiple billing for time, services, or any other eligible cost, may result in an
administrative action by the State Water Board and/or referral to the Attorney General’s
Office or the applicable District Attorney’s Office for appropriate action. The Recipient
further understands that any suspected occurrences of false claims, misrepresentation,
fraud, forgery, theft or any other misuse of Project Funds may result in withholding of
reimbursements and/or the termination of this Agreement requiring the immediate
repayment of all Project Funds disbursed hereunder. A person who knowingly makes
or causes to be made any false statement, material misrepresentation, or false
certification in any submittal may be subject to a civil penalty, criminal fine, or
imprisonment. (Wat. Code, § 13490 et seq.)
D.14 DISPUTES.
The Recipient must continue with the responsibilities under this Agreement during any
dispute. The Recipient may, in writing, appeal a staff decision within thirty (30) days to
the Deputy Director of the Division or designee, for a final Division decision. The
Recipient may appeal a final Division decision to the State Water Board within thirty (30)
days. The Office of the Chief Counsel of the State Water Board will prepare a summary
of the dispute and make recommendations relative to its final resolution, which will be
provided to the State Water Board’s Executive Director and each State Water Board
Member. Upon the motion of any State Water Board Member, the State Water Board
will review and resolve the dispute in the manner determined by the State Water Board.
Should the State Water Board determine not to review the final Division decision, this
decision will represent a final agency action on the dispute. This provision does not
preclude consideration of legal questions, provided that nothing herein shall be
construed to make final the decision of the State Water Board, or any official or
representative thereof, on any question of law. This section relating to disputes does
not establish an exclusive procedure for resolving claims within the meaning of
Government Code sections 930 and 930.4.
D.15 EXECUTIVE ORDER N-6-22 — RUSSIAN SANCTIONS.
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO)
regarding Economic Sanctions against Russia and Russian entities and individuals.
“Economic Sanctions” refers to sanctions imposed by the U.S. government in response
to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The
EO directs state agencies to terminate contracts with, and to refrain from entering any
new contracts with, individuals or entities that are determined to be a target of Economic
Sanctions. Accordingly, should the State Water Board determine Recipient is a target of
City of San Luis Obispo
Agreement No.: D2312550
Page 43 of 46
Exhibit D
Economic Sanctions or is conducting prohibited transactions with sanctioned individuals
or entities, that shall be grounds for termination of this Agreement. The State Water
Board shall provide Recipient advance written notice of such termination, allowing
Recipient at least 30 calendar days to provide a written response. Termination shall be
at the sole discretion of the State Water Board.
The Recipient represents that the Recipient is not a target of economic sanctions
imposed in response to Russia’s actions in Ukraine imposed by the United States
government or the State of California. The Recipient is required to comply with the
economic sanctions imposed in response to Russia’s actions in Ukraine, including with
respect to, but not limited to, the federal executive orders identified in California
Executive Order N-6-22, located at https://www.gov.ca.gov/wp-
content/uploads/2022/03/3.4.22-Russia-Ukraine-Executive-Order.pdf and the sanctions
identified on the United States Department of the Treasury website
(https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-
country-information/ukraine-russia-related-sanctions). The Recipient is required to
comply with all applicable reporting requirements regarding compliance with the
economic sanctions, including, but not limited to, those reporting requirements set forth
in California Executive Order N-6-22 for all Recipients with one or more agreements
with the State of California with an aggregated value of Five Million Dollars ($5,000,000)
or more. Notwithstanding any other provision in this Agreement, failure to comply with
the economic sanctions and all applicable reporting requirements may result in
termination of this Agreement.
For Recipients with an aggregated agreement value of Five Million Dollars ($5,000,000)
or more with the State of California, reporting requirements include, but are not limited
to, information related to steps taken in response to Russia’s actions in Ukraine,
including but not limited to:
(a) Desisting from making any new investments or engaging in financial
transactions with Russian institutions or companies that are
headquartered or have their principal place of business in Russia;
(b) Not transferring technology to Russia or companies that are
headquartered or have their principal place of business in Russia; and
(c) Direct support to the government and people of Ukraine.
D.16 STATE PROGRAM REQUIREMENTS.
• Eminent Domain Prohibited. (Wat. Code, § 79711.) Where land acquisition is
otherwise authorized under this Agreement, Project Funds and Match
Contribution shall not be used to acquire land via eminent domain.
City of San Luis Obispo
Agreement No.: D2312550
Page 44 of 46
Exhibit D
• Governor’s Infrastructure Plan. (Gov. Code, § 13100.) The Recipient shall
ensure that the Project shall maintain consistency with section 13100 of the
Government Code (five-year infrastructure plan).
• Groundwater Monitoring. (Wat. Code, § 10920.) The Recipient shall comply with
Water Code section 10920 et seq., which requires groundwater monitoring and
reporting of groundwater elevations.
• Remediation Costs Limited. (Wat. Code, § 79771.) Project Funds shall not be
used to pay any share of the costs of remediation recovered from parties
responsible for the contamination of a groundwater storage aquifer, but may be
used to pay costs that cannot be recovered from responsible parties. Recipients
that have received Project Funds for remediating groundwater storage aquifers
shall exercise reasonable efforts to recover the costs of groundwater cleanup
from the parties responsible for the contamination. Funds recovered from
responsible parties may only be used to fund treatment and remediation
activities.
• Sustainable Groundwater Management Act (SGMA) Compliance. Wat. Code, §
10720-10737.8. To the extent required under SGMA, the Recipient shall comply
with the following:
o If, after July 1, 2017, the Project is or will be located in a non-adjudicated
high- or medium-priority California Statewide Groundwater Elevation
Monitoring (CASGEM) basin, the Recipient shall ensure that a
Groundwater Sustainability Agency (GSA) has formed or an alternative
has been submitted to DWR. (Wat. Code, § 10735.2 (a)(1).)
o If, after January 31, 2020, the Project is or will be located in a non-
adjudicated high- or medium-priority CASGEM basin that is subject to
critical conditions of overdraft, the Recipient shall ensure that the Project
is consistent with an adopted Groundwater Sustainability Plan (GSP).
o If, after January 31, 2022, the Project is or will be located in a non-
adjudicated high- or medium-priority CASGEM basin that is not subject to
critical conditions of overdraft, the Recipient shall ensure that the Project
is consistent with an adopted GSP.
• Water Quality Compliance. (Wat. Code, § 79707.) The Recipient shall ensure
that the Project shall maintain consistency with Division 7 of the Water Code
(commencing with section 13000) and Government Code section 13100.
• Water Quality Monitoring. (Wat. Code, § 79704.) If water quality monitoring is
required as part of the Project, the Recipient shall collect and report water quality
monitoring data to the State Water Board in a manner that is compatible and
City of San Luis Obispo
Agreement No.: D2312550
Page 45 of 46
Exhibit D
consistent with surface water monitoring data systems or groundwater monitoring
data systems administered by the State Water Board.
• Wild and Scenic Rivers. (Wat. Code, § 79711.) The Recipient shall ensure that
the Project will not have an adverse effect on the values upon which a wild and
scenic river or any other river is afforded protections pursuant to the California
Wild and Scenic Rivers Act or the federal Wild and Scenic Rivers Act.
D.17 STATE CROSS-CUTTERS.
The Recipient represents that, as applicable, it complies and covenants to maintain
compliance with the following with respect to all Project Costs for the term of the
Agreement:
• The California Environmental Quality Act (CEQA), as set forth in Public
Resources Code, section 21000 et seq. and in the CEQA Guidelines at Title 14,
Division 6, Chapter 3, section 15000 et seq.
• Water Conservation requirements, including regulations in Division 3 of Title 23
of the California Code of Regulations.
• Monthly Water Diversion Reporting requirements, including requirements set
forth in Water Code, section 5103.
• Public Works Contractor Registration with Department of Industrial Relations
requirements, including requirements set forth in sections 1725.5 and 1771.1 of
the Labor Code.
• Volumetric Pricing & Water Meters requirements, including the requirements of
Water Code, sections 526 and 527.
• Urban Water Management Plan requirements, including the Urban Water
Management Planning Act (Water Code, § 10610 et seq.).
• Urban Water Demand Management requirements, including the requirements of
Water Code, section 10608.56.
• Delta Plan Consistency Findings requirements, including the requirements of
Water Code, section 85225 and California Code of Regulations, title 23, section
5002.
• Agricultural Water Management Plan Consistency requirements, including the
requirements of Water Code, section 10852.
City of San Luis Obispo
Agreement No.: D2312550
Page 46 of 46
Exhibit D
• Charter City Project Labor Requirements, including the requirements of Labor
Code, section 1782 and Public Contract Code, section 2503.
• The Recipient agrees that it will, at all times, comply with and require its
contractors and subcontractors to comply with directives or orders issued
pursuant to Division 7 of the Water Code.
• Regulations in Division 4 of Title 22 of the California Code of Regulations,
including but not limited to California Waterworks Standards in Chapter 16, and
Lead and Copper regulations in Chapter 17.5.
State Water Resources Control Board (State Water Board)
California Environmental Quality Act (CEQA) Findings
Project Title: Agreement #:
Grantee: County:
Lead Agency:
Project Location (attach map, if applicable):
Project Description:
The grant agreement includes planning/design tasks and implementation/construction tasks.
I certify to the best of my knowledge that the planning and design portion of the project is exempt from
CEQA, since it consists of planning and feasibility studies (CEQA Guidelines, Section 15262), and/or basic data collection
and research with no disturbance to an environmental resource (CEQA Guidelines, Section 15306), which will not result in
any significant adverse water quality impacts.
The State Water Board will not disburse funds for implementation/construction until the lead agency has:
•Completed all documentation required under CEQA for the proposed implementation/construction project;
•Taken all required steps to prepare, circulate, and certify the required CEQA documents; and
•Obtained written environmental clearance from the State Water Board confirming that the State Water Board has
made its own environmental findings and concurred that implementation/construction activities may proceed.
Project Manager Concurrence:
X
State Water Board Concurrence:
X
Print: Print:
Date: Date:
Digitally signed by
Robin Guillot
Date: 2023.11.28
16:45:27 -08'00'
Joe
Karkoski
Digitally signed by Joe
Karkoski
Date: 2024.01.18
14:37:46 -08'00'
Tetrachloroethylene Plume Characterization Implementation Project D2312550
City of San Luis Obispo San Luis Obispo
City of San Luis Obispo
Robin Guillot
November 28, 2023 January 18, 2024