HomeMy WebLinkAboutItem 5e Authorization to Advertise the Monitoring Well Drilling Project, Spec 2091506 Item 5e
Department: Utilities
Cost Center: 6003
For Agenda of: 5/6/2025
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Nick Teague, Water Resources Program Manager
SUBJECT: AUTHORIZATION TO ADVERTISE THE MONITORING WELL DRILLING
PROJECT, SPECIFICATION 2091506, AND AUTHORIZATION FOR
ADDITIONAL FUNDING FOR THE GROUNDWATER CONTAMINATION
CHARACTERIZATION PROJECT
RECOMMENDATION
1. Approve the project plans and special provisions for the Monitoring Well Drilling
Project, Specification Number 2091506; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the Construction Contract pursuant to Section
3.24.190 of the Municipal Code if the lowest responsive and responsible bid is within
the available budget for the Monitoring Well Drilling Project; and
4. Authorize the City Engineer to approve Contract Change Orders up to the available
project budget; and
5. Authorize the City Manager to approve contract amendments for the project, not to
exceed a cumulative total of $8,925,379; and
6. Find the Monitoring Well Drilling Project consistent with the previously adopted Initial
Study/Mitigated Negative Declaration and Mitigation, Monitoring, and Reporting
Program.
REPORT-IN-BRIEF
The Monitoring Well Drilling Project is part of the Implementation Phase of the
Groundwater Contamination Characterization Project, a larger project which in its entirety
aims to design, drill, and equip groundwater wells with treatment systems capable of
removing tetrachloroethylene (PCE) contamination, and to put the City’s available
groundwater to beneficial use as a drinking water source while removing PCE
contamination from local groundwater supplies. Monitoring wells are used to monitor
groundwater depth and groundwater quality to demonstrate the effectiveness of the larger
project’s goal to remove PCE from the groundwater basin and to ensure that groundwater
pumping does not negatively impact stream flows or result in land subsidence. Monitoring
well drilling is the second of three phases of the implementation stage of this project and
is critical to demonstrating the effectiveness of the entire project. In addition to the request
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for actions related to monitoring well drilling, staff is requesting Council’s authorization for
contract amendments for the project, as described in the fiscal analysis.
POLICY CONTEXT
The Monitoring Well Drilling Project is consistent with the City’s adopted General Plan
Water and Wastewater Element (WWE) Goals A 2.1 and A 3.1 as providing an additional
reliable water supply source that helps to ensure a long-term, reliable water supply and
expands the City’s water resources to meet both current resiliency strategies and future
water demand associated with development envisioned by the General Plan. Specifically,
Policy A 3.2.3 states that “the City will continue to use groundwater t o enhance the
resiliency of the City’s water supply portfolio”.
DISCUSSION
Background
Use of available groundwater resources would improve resiliency in the City’s water
supply portfolio. Based on estimates published in the San Luis Obispo Valley Basin
Groundwater Sustainability Plan, the City anticipates about 700 acre-feet of groundwater
is available for use each year. 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 resiliency goals. Local groundwater quality sampling has
documented areas of the San Luis Obispo Valley Groundwater Basin underlying the City
that 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 before
the City can 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 facility owned
by the City of San Luis Obispo.
In July 2020, the City received a $1,996,575 grant through Round 1 (Planning Phase) of
the State of California Proposition 1 Groundwater Grant Program to study PCE
contamination 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 will serve, as a source of drinking water. A detailed understanding of the extent
of PCE contamination and remediation options were necessary steps in fully utilizing the
City’s ground water supplies. The total Planning Phase cost including the City’s local
match was over $2 million. The Planning Phase of the Groundwater Contamination
Characterization 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 State Water
Resources Control Board (SWRCB) for reimbursement, was completed April 12, 2023.
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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 of the Groundwater Contamination Characterization Project.
The grant application for the Implementation Phase was submitted July 2022, and the
refined estimated budget was $6,607,850 (Attachment A). 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 (Attachment B). The award of the grant
from the SWRCB required a local match of $730,085.
On August 30, 2023, the City received a memo from the SWRCB that informed the City
that SWRCB waived the match requirement for the City’s Implementation Phase
($730,085; Attachment C). The grant agreement was signed and executed on February
14, 2024, funding the full project budget amount of $6,607,850 with grant funding.
On December 18, 2024, the City requested additional grant funding through the
Proposition 1 Groundwater Grant Program to cover increased costs for tasks primarily
related to design, engineering, and construction of the new extraction wells and
groundwater treatment facility. In February 2025, the SWRCB notified the City that they
were awarding an additional $1,174,950 in grant funding to the Implementation Phase of
the Groundwater Contamination Characterization Project . The grant agreement
(Attachment D) was signed and executed on February 14, 2025, providing a total of
$7,782,800 in grant funding.
Recommended Action
Staff are currently requesting approval of the project plans and special provisions
(Attachment E), and the authorizations and approvals needed , to commence the
Monitoring Well Drilling Project. The Monitoring Well Drilling Project includes the drilling
and construction of between 8 and 9 new monitoring wells within the identified PCE plume
(Figure 1). These wells will be used to monitor groundwater quality to determine the
effectiveness of groundwater pumping on the removal of PCE from the groundwater
basin. They will also be used to monitor groundwater levels so that groundwater
production can be optimized while remaining compliant with the San Luis Obispo Valley
Groundwater Sustainability Plan (GSP). As previously mentioned, the Monitoring Well
Drilling Project is part of the Implementation Phase of the Groundwater Contamination
Characterization Project, which also includes two additional Project components: a
Groundwater Well Drilling Project, and a Well Equipping Project. Completion of the
projects comprising the Implementation Phase is expected in Spring 2026, at which time
the City will begin using groundwater as an additional source of supply.
Staff are requesting City Council authorization for the City Manager to approve contract
amendments for the project, not to exceed a cumulative total of $8,925,379. Previous
Council authorization on March 6, 2025, capped contract amendments for the project at
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Item 5e
$7,750,429 ($6,607,850 of grant funding, $1,142,579 City funding). The increase in grant
funding approved in February 2025, increased the total available funding for the project
to $8,925,379 ($7,782,800 grant funding, $1,142,579 City funding). This authorization will
allow staff to utilize the entire available funding amount.
Figure 1. Map of proposed monitoring well locations for the Monitoring Well Drilling
Project, Groundwater Contamination Characterization Project Implementation Phase
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Previous Council or Advisory Body Action
The City Council authorized staff to prepare and submit a grant application for the
Groundwater Contamination Characterization Project (Round 1 – Planning Phase) on
February 5, 2019.
On December 7, 2021, the City Council approved and authorized specifications for the
Planning Phase of the Groundwater Contamination Characterization Project and award
of the construction contract; staff preparation and submittal of the grant application for the
Implementation Phase (Round 3) of the Project; funding for application preparation and
a local match of a maximum of 10 percent of the total project cost ; 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.”
On May 16, 2023, the City Council approved and authorized the use of up to $1,142,579
of City funding for the local match requirement (that was required at that time, but later
waived), and any potential increases in costs related to CEQA compliance, construction,
and materials costs and associated inflation; execution of required grant, consultant, and
construction-related agreements; and change orders and contract agreements for the
project, not to exceed a cumulative total of $7,020,344 (including $5,877,765 of grant
funding).
On March 4, 2025, the City Council approved the project plans and special provisions for
the Groundwater Well Drilling Project; adopted a resolution recommending adoption of
the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for
the Groundwater Contamination Characterization Project; and authorized the City
Manager to approve contract amendments for the project, not to exceed a cumulative
total of $7,750,429.
Public Engagement
A public forum was held on December 10, 2024, at the Public Library meeting room. At
the public forum, staff from the City, and its consultant, presented on this project, and
additional forthcoming projects that will collectively result in new infrastructure, which will
provide clean groundwater for use as a new water source for the City. As a result of the
public forum, the Groundwater Contamination Characterization Project was highlighted in
an article by the San Luis Obispo Tribune.
CONCURRENCE
The Utilities Department Deputy Director of Engineering concurs with the proposed scope
and approach of the project.
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ENVIRONMENTAL REVIEW
On March 4, 2025, City Council adopted a Resolution to adopt the Mitigated Negative
Declaration and Mitigation Monitoring and Reporting Program (MMRP) for the
Groundwater Contamination Characterization Project. This Initial Study/Mitigated
Negative Declaration (IS/MND) was prepared for the “whole of th e action” of the
Groundwater Contamination Characterization Project, which includes the Monitoring Well
Drilling Project described in this agenda report and attached proposed bid package in
addition to all other project implementation actions, including but not limited to
construction and operation of groundwater wells, well treatment systems, and associated
utility infrastructure. The environmental review process complied with all requirements of
the California Environmental Quality Act statute and guidelines, including but not limited
to Native American tribal consultation, noticing requirements, public circulation of the
document, availability of the environmental document at the City Utilities Department
office and the City website, and filing of the Notice of Determination.
The IS/MND identifies potentially significant impacts to the following envir onmental
resources: aesthetics, biological resources, cultural resources, geology and soils, noise,
and tribal cultural resources. Mitigation measures were adopted that would reduce all
identified impacts to less-than-significant. The Monitoring Well Drilling Project was
evaluated in the adopted IS/MND and is subject to the mitigation measures included in
the adopted MMRP. Therefore, staff recommends that the City Council find the Project
consistent with the adopted IS/MND and MMRP, and no further environme ntal analysis
of project impacts is required.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:
Funding previously approved by Council for this project includes $6,607,850 that has
been provided through the State Water Resources Control Board (SWRCB) Proposition
1 Round 3 funds; and $1,142,579 from the City’s Water Fund. The recent $1,174,950
increase in grant funding will increase the available funding to $8,925,379 ($7,782,800
grant funding, $1,142,579 City funding).
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Table 1. Previously allocated funds and current funding request by funding source.
SWRCB Prop 1
Round 3 Grant
Funding
Water Fund (601)
Unreserved Working Capital
Previously Authorized
Funds
$6,607,850 $1,142,579*
Additional Grant Funding $1,174,950
Total Funding By Source $7,782,800 $1,142,579
New Total Project Cost $8,925,379
*Amount equal to the initial local match requirement. This funding was added to the total grant
funds following the waiver of the local match.
Table 2. Engineer’s Estimate for Monitoring Well Drill Project.
Monitoring Well Drilling Project, Specification (2091506)
Construction Base Bid Estimate $480,000
Additive Alternate Estimate $35,000
Contingencies $129,000
Material Testing $67,000
Permitting and Monitoring $26,000
Printing and Advertisement $1,000
Total Cost of Project $738,000
Total Available Funding $7,782,800
Expenditures to date $2,012,897
Additional Funding $1,142,579
Remaining Balance $6,912,482
ALTERNATIVES
1. Defer the approval to advertise the project. City Council could choose to defer the
authorization to advertise this project to a later date. The project is necessary to satisfy
the requirements of the Prop. 1 Groundwater Cleanup grant. Deferring this project to
a later date my impact the City’s ability to meet project deadlines, which would result
in non-compliance and potential recoupment of grant funding.
2. Deny the approval to advertise the project. City Council could choose to deny the
authorization to advertise this project. The project is necessary to satisfy the
requirements of the Prop. 1 Groundwater Cleanup grant and failure to advertise this
project would result in non-compliance and potential recoupment of grant funding.
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Item 5e
ATTACHMENTS
A - Estimated Budget Submitted with Round 3 Groundwater Contamination
Characterization Project Grant Application
B - Proposition 1 Round 3 Preliminary Award Letter
C - Revised Memo for Match Waiver and Funding
D - Proposition 1 Groundwater Grant Program grant agreement signed and executed on
February 14, 2025
E - Project plans and special provisions for the Monitoring Well Drilling Project,
Specification Number 2091506
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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
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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
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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
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State Water Resources Control Board
March 6, 2023
Mr. Aaron Floyd
City of San Luis Obispo
Utilities Department
879 Morro Street
San Luis Obispo, CA 93401
afloyd@slocity.org
PROPOSITION 1 GROUNDWATER GRANT PROGRAM (GWGP) ROUND 3
IMPLEMENTATION GRANT SOLICITATION, NOTIFICATION OF AWARD
Dear Mr. Floyd:
Congratulations! The Tetrachloroethylene (PCE) Plume Characterization
Implementation Project (Project) has been approved for funding with a grant award of
$5,877,765.
The Project consists of preparing a fate and transport groundwater model of the PCE
plume, siting and construction of 2 extraction and treatment wells, and installation of a
minimum of 8 monitoring wells to monitor the long-term progress of treatment within the
City of San Luis Obispo (City).
The Project has been reviewed by technical experts from the State Water Resources
Control Board’s (State Water Board) Division of Financial Assistance (Division), the
Central Coast Regional Water Quality Control Board, and the State Water Board’s
Division of Drinking Water. The technical experts concur that the Project, as proposed,
should achieve the stated objectives and is eligible for funding per the GWGP
Guidelines, as amended on February 2, 2021.
Based on staff’s review of the City’s request for a reduced match, supporting information
provided in the Full Proposal, and the GWGP Guidelines, Table 2, the City qualifies for a
reduced match of eleven percent (11%) because one hundred percent (100%) of the
Project benefits a Disadvantaged Community or Economically Distressed Area.
Robin Guillot has been assigned as the Project Manager for this Project. You will
receive an introductory email from an assigned Program Analyst with further information
about roles and responsibilities, grant agreement development, invoicing, deliverables,
performance measures, and reporting requirements. You will also be contacted by your
assigned Project Manager to ensure that all conditions and comments are addressed
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Mr. Floyd - 2 -
prior to execution of the final grant agreement. We encourage your prompt response to
any requests from our staff because unreasonable delays or failure to respond could
result in withdrawal of this grant award.
Your grant award is conditioned on the successful negotiation of a grant agreement .
The agreement process will begin with the finalization of a scope of work and budget
that is acceptable to the Division. The scope of work will be based on the Full Proposal;
however, the Division may require changes to the scope of work and budget as part of
the grant agreement negotiation process. Based on the technical review of the Full
Proposal, staff have initially identified the following item(s) that will need to be
addressed.
Key information to be provided prior to execution of the grant agreement:
1. Additional documentation regarding monitoring requirements and a detailed
description of the remediation technology intended to be used for the Project.
2. Documents omitted from the Full Proposal including an up-to-date Project
Director Certification form signed by the City’s Authorized Representative.
Thank you for your consideration in addressing these items with Division staff. We look
forward to working with you on this Project. Please contact the assigned Project
Manager, Robin Guillot, with any questions at (916) 319-8259, or
Robin.Guillot@waterboards.ca.gov.
Sincerely,
Joe Karkoski, Deputy Director
Division of Financial Assistance
cc: see next page
Joe Karkoski Digitally signed by Joe Karkoski
Date: 2023.03.06 10:48:31
-08'00'
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Mr. Floyd - 3 -
cc: Christopher Stevens
Division of Financial Assistance
Kim Dinh
Division of Financial Assistance
Alex Huang
Division of Financial Assistance
Robin Guillot
Division of Financial Assistance
Debbie Cheung
Division of Financial Assistance
Andrew Nevis
Office of Legislative Affairs
Jeff Densmore
Division of Drinking Water
Katie McNeill
Regional Water Quality Control Board
Dean Thomas
Regional Water Quality Control Board
Daniel Ellis
Regional Water Quality Control Board
Miguel Barcenas
City of San Luis Obispo
mbarcena@slocity.org
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State Water Resources Control Board
TO:
FROM:
DATE:
Joe Karkoski
Deputy Director
DIVISION OF FINANCIAL ASSISTANCE
Alex Huang
Senior Engineering Geologist
DIVISION OF FINANCIAL ASSISTANCE
August 29, 2023
SUBJECT: REVISED - PROPOSITION 1 GROUNDWATER GRANT PROGRAM
(GWGP) ROUND 3 FUNDING RECOMMENDATIONS
BACKGROUND
The GWGP Round 3 full proposal solicitation window opened on April 14, 2022 , and
closed on July 15, 2022. Technical reviewers from several state agencies scored each
proposal according to the rubric in Appendix F of the GWGP guidelines. On
February 9, 2023, the Deputy Director of the Division of Financial Assistance (DFA)
approved staff’s recommendation to award funding for eight projects and to not award
funding for the Central Coast Blue project (Attachment A). DFA issued funding award
letters for the eight Round 3 projects approved for funding. On March 17, 2023, DFA
issued a funding denial letter for the Central Coast Blue project (Attachment B).
The following new developments occurred after the Deputy Director of DFA approved
staff’s recommendation:
1.DFA received an urgent appeal letter from the City of Pismo Beach (City)
regarding the funding determination for the Central Coast Blue project on
March 23, 2023 (Attachment C). Staff met with the City in person on
April 5, 2023, and again via Teams on April 25, 2023, to discuss the project and
its nexus to the cleanup or prevention of groundwater contamination. The City
initially asked for $35.7 million in its proposal, then reduced the request to
$18.5 million in its appeal letter. Most recently, in an email dated May 24, 2023,
the City asked DFA to reconsider an approval of $8 million in GWGP funding
(Attachment D).
2.The GWGP Guidelines were amended on May 2, 2023, to allow the Deputy
Director of DFA discretion to completely waive the match requirements for Round
3 projects that benefit disadvantaged communities (DACs) and severely
disadvantaged communities (SDACs), to the extent authorized by statute.
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Joe Karkoski - 2 -
ANALYSIS: REVISED FUNDING RECOMMENDATION FOR CITY OF PISMO
BEACH’S CENTRAL COAST BLUE PROJECT
DFA staff have re-evaluated the City’s proposed Central Coast Blue project (Project)
and concluded that the Project is eligible for GWGP funding, and recommend providing
$8 million in Prop 1 GWGP funding.
By statute, projects that prevent contamination of groundwater that has served, or
serves, as a source of drinking water are eligible. (Wat. Code, § 79771.) This project
would prevent groundwater contamination that has served, and serves, as a source of
drinking water by providing groundwater recharge to protect against contamination.
Under the GWGP Guidelines, projects that provide groundwater recharge to prevent or
reduce contamination of municipal or domestic wells, or that consist of groundwater
injection to prevent seawater intrusion, are specifically listed as eligible project types.
(GWGP Guidelines, § 4.4, subds. d and e.) Although the available information indicates
that the communities’ voluntarily reduced pumping has reduced the likelihood of
seawater intrusion, seawater intrusion would cause substantial adverse impacts to this
water supply. Based on the eligibility criteria in the statute and GWGP Guidelines, the
Project is eligible.
Staff have determined that $8 million in funding is appropriate, but not the full requested
amount of $35.7 million, based on the following considerations . The City and other local
governments have successfully forestalled the immediate threat of groundwater
degradation because the City and its partner agencies have diligently conserved water
and reduced their groundwater pumping rates. As a result, the Project scored lower
than the other proposals evaluated for Prop 1 GWGP funding. As discussed in the next
section, there are insufficient remaining Prop 1 GWGP funds to cover the entire
$35.7 million request.
However, DFA staff have determined that the benefits of the project are significant
enough to justify a GWGP grant. Future precipitation is unpredictable. During critically
dry years, dwindling surface water supplies may force the City and other local
governments to increase pumping rates, resulting in overdraft of the groundwater basin.
The Project aims to prevent situations like this from happening. Additionally, the
potential for the Project to enhance local water supply reliability and address the urgent
need for an alternative water supply cannot be overlooked. The Project supports the
priorities of Proposition 1 by enhancing water supply reliability (Wat. Code, §
79771(b)(3)), promoting groundwater recharge (Wat. Code, § 79771(b)(4)), and by
allowing California to adapt to changing hydrologic conditions brought on by climate
change (Wat. Code, § 79770). The project also aligns with California’s Water Supply
Strategy and conforms with Executive Order N-3-23.
Therefore, staff recommend providing $8 million in Prop 1 GWGP funding for the
Central Coast Blue Project.
Page 46 of 994
Joe Karkoski - 3 -
ANALYSIS: MATCH WAIVERS
The Prop 1 GWGP Guidelines set aside funds for projects benefiting DACs and SDACs
as required by statute. The rest of the funds may be used for any projects eligible for
Prop 1 GWGP, regardless of disadvantaged status (generic funds). The set-aside funds
for projects benefitting DACs were exhausted after the initial award of Round 3 projects,
and only one Round 3 project benefits an SDAC. Waiving the match requirement for
eligible Round 3 projects would enable the GWGP to commit an additional $6.2 million
from the generic funds and $1 million from the SDAC set-aside funds.
CONCLUSIONS
If the Deputy Director of DFA approves the $8 million request from the City and waives
the match requirement for all eligible Round 3 DAC and SDAC projects, there would be
$13.3 million remaining in generic funds, and $20.8 million left in the SDAC set-aside.
These funds may be used to fund additional cost increases for existing projects, or to
fund new drinking water treatment or wastewater projects that serve SDACs.
STAFF RECOMMENDATIONS
Staff recommends the following:
1. Award GWGP funds for the Central Coast Blue Project and waive match for all
Round 3 projects that serve DACs and an SDAC that are eligible for the match
waiver (a total of five projects) as shown in Table 1. One DAC project would not
qualify for match waiver, as explained in the footnote. The non-DAC projects do not
qualify for a match waiver under the amended Guidelines .
$635,900,000
$20,800,000 $13,300,000
Prop 1 GWGP Funds Remaining After
Waiving Match and Funding Central
Coast Blue
Committed SDAC Set-Aside Remaining Generic Funds Remaining
Page 47 of 994
Joe Karkoski - 4 -
TABLE 1 – GWGP Round 3 Revised Funding Recommendations
Applicant Proposal Title DAC
Status
Funding
approved
2/9/23
Match
waiver
Revised
funding
amount
City of Dinuba Wellfield Groundwater
Quality Improvement and
Sustainability Project
SDAC $9,541,601 Waive $10,611,819
City of Turlock Downtown Turlock PCE
Project
DAC $14,640,045 Waive $17,269,997
City of El Monte* Former Crown City Plating
Site
DAC $1,901,250 Do not
waive
$1,901,250
(No change)
San Gabriel
Basin Water
Quality Authority
Whitmore Street
Groundwater Remediation
Facility Expansion
Implementation
DAC $1,850,735 Waive $3,701,470
City of Modesto Municipal Groundwater
Supply Contamination
Prevention and Cleanup
DAC $8,445,035 Waive $9,434,145
City of San Luis
Obispo
PCE Plume
Characterization
DAC $5,877,765 Waive $6,607,850
Alameda County
Water District
Brackish Groundwater
Reclamation Project
Non-
DAC
$2,205,094 Do not
waive
$2,205,094
(No change)
United Water
Conservation
District
Phase 1 Pumping of
Coastal Brackish
Groundwater Wells to
Control Seawater
Intrusion, Oxnard Basin
Non-
DAC
$8,449,062 Do not
waive
$8,449,062
(No change)
City of Pismo
Beach
Central Coast Blue Non-
DAC
$0 Do not
waive
$8,000,000
Totals: $52,910,587 $68,180,687
*The City of El Monte’s project, while serving a DAC, would not be eligible for a match waiver under
present circumstances. Water Code, section 79771(c), prohibits funding to be used to pay any share of
the costs of remediation recovered or recoverable from responsible parties . Under current circumstances,
54% of the project funds appear to be recoverable from a viable potentially responsible party, the property
owner.
2. GWGP staff should notify Round 3 applicants that will be affected by the approval of
a complete waiver of match requirements.
3. GWGP staff should notify the City of Pismo Beach about DFA’s funding decision,
superseding the funding determination letter dated March 17, 2023.
Page 48 of 994
Joe Karkoski -5 -
APPROVAL
I, Joe Karkoski, Deputy Director of the State Water Board’s Division of Financial
Assistance, approve staff’s recommendations described above.
Approved: _________________________
Joe Karkoski, Deputy Director
Division of Financial Assistance
Attachments (4)
1.Attachment A - Round 3 Funding Recommendation Narrative
2.Attachment B - Pismo Beach - Funding Determination Letter
3.Attachment C - Pismo Beach Central Coast Blue Funding Determination
4.Attachment D - Support for Central Coast Blue and Funding Determination
cc: Christopher Stevens
Division of Financial Assistance
Kim Dinh
Division of Financial Assistance
Debbie Cheung
Division of Financial Assistance
Kari Holzgang
Division of Financial Assistance
Anabel Ruiz
Division of Financial Assistance
Joseph Escobar
Division of Financial Assistance
David Maurer
Division of Financial Assistance
Catarina Hinojos
Division of Financial Assistance
Joe Karkoski Digitally signed by Joe Karkoski
Date: 2023.08.29 15:29:00
-07'00'
Page 49 of 994
Page 50 of 994
roTJcalrtoattA
-
Water Boards \ /
_,. :.i=_; +;;-.i;i; ifffi i.B.;x:iii6i;
GROUNDWATER IMPLEMENTATION GRANT
AMENDM ENT NO. 1
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 79771of the Water Code, and Resolution Nos. 2017-0075,2021-0003, and
2023-0013.
PROJECT FUNDING AMOUNT: $6€o7#5o $7.782.800
ESTIMATED REASONABLE PROJECT COST: $ffi $7.782.800
ELIGIBLE WORK START DATE: MARCH 6,2023
WORKCOMPLETIONDATE: W DECEMBER 31 ,2026
FINAL REIMBURSEMENT REQUEST DATE: MARCH_reS FEBRUARY 1.2027
RECORDS RETENTION END DATE: W DECEMBER 31 ,2062
This Aqreement executed bv the State Water Board on Februarv 14. 2024. is
herebv amended and restated. to revi se the cover Daqe. the Aoreement and
Exhibits A and B (deletions shown as stricken and revisions bold and
underlined). Exceot as noted herein all other terms and conditions shall remain
the same. Please note. paqe numbers mav have chanqed.
Adobe Acrobat Sign Transaction Number CBJCHBCAABAAnvpolJpx4DzkimlaflKPegEmalTGtUH2
Page 51 of 994
1
City of San Luis Obispo
Agreement No.. D231 2550ffi
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 SCHEDULEo EXHIBIT B - FUNDING TERMSo EXHIBIT C - GENERAL TERMS AND CONDITIONS 2019-NOV
o EXHIBIT D - SPECIAL CONDITIONS
2. Party Contacts during the term of this Agreement are
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.
State Water Board City of San Luis Obispo
Section Division of Financial Assistance
Name:Robin Guillot, Project Manager Name Nick Teague, Water
Resources Program
Manaqer
Address 1001 I Street, 17th Floor Address 879 Morro Street
City,
State
zip.
Sacramento, CA 958'14 City,
State,
zip:
San Luis Obispo, CA 93401
Phone (916) 319-8259 Phone (805) 781-7217
Email Robi n. G u i I lot@waterboard s. ca. q ov Email nteaque@slocitv.orq
Page 52 of 994
5
City of San Luis Obispo
Agreement No.: D2312550ffi
(b) The execution and delivery of this Agreement, including all incorporated
documents, has been duly authorizedby 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.
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.
Page 53 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 4 of 47
lN WITNESS WHEREOF, this Ag+eem€n+ Amendment has been executed by the
parties hereto.
CITY OF SAN LUIS OBISPO STATE WATER RESOURCES CONTROL
BOARD
%Aaron Flayd
By
Name
Title:
Aaron Floyd
Utilities Director
By
Name
Title:
DateDateMar 6,2025
Joe Karkoski
Deputy Director
Division of Financial Assistance
Ma r L4,2025
Adobe Acrobat Sign Transaction Number: CBJCHBCAABAAnvpolJpx4DzkimraflKPQgEmalTGtUH2
Page 54 of 994
City of San Luis Obispo
Agreement No.: D23'1 2550
Amendment 1
Page 5 of 47
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.
4.2 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.
Gene ral Com p I ia nce Req u i rements/P roject Effective ness a nd
Performance
(b)
Exhibit A Page 55 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 6 of 47
(1) Submit Global Positioning System (GPS) information and survey
data for project site(s) and monitoring location(s) for this Project to
the Project Manager. Submittal requirements for GPS data are
available at:
http : //www.waterboards. ca. q ov/water iss ues/proq rams/q rants loan
s/q rant_i nfo/d ocs/q ps. 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.
Exhibit A Page 56 of 994
(3)
(b) A PAEP which describes how the Project performance will
be assessed, evaluated, and reported. The PAEP must
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.
Monitor Project effectiveness in accordance with the approved
MRP.
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
PageT of 47
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.
(a)
(4) Prepare, maintain, and implement a Quality Assurance Project Plan
(OAPP) in accordance with the United States Environmental
Protection Agency's (USEPA) QAPP guidance documents (EPA
QA/G-S and EPA OA/R-S). 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 lD prior to collecting
samples.
a) Upload data that was utilized in item (bX2) 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 (GlS) data. Submit an
annotated list of reviewed data and reports to the Project
Manager.
Exhibit A Page 57 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amen 1
Page 8 of 47
(c) Environmental Compliance and Permitting
(1) Complete documentation required under the California
Environmental Quality Act (CEOA) 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. lf 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 ltem (dX2) 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
g rou ndwater contam i nation.
Exhibit A Page 58 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 9 of 47
(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) lnstall a minimum of eight (8) new groundwater monitoring
wells.
(b) lnstall 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)( ) and, after receiving all required approvals,
advertise the Project for bid. Submit the advertised bid documents
to the TAC and the Project Manager.
(f) Constructionandlmplementation
(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 ltem (eX4), after obtaining environmental
clearance in ltem (c)(1)(c) and the necessary approvals,
entitlements, and/or permits in ltem (cX2)
Exhibit A Page 59 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page '10 of 47
(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 ltem (eX3) 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.
Exhibit A Page 60 of 994
City of San Luis Obispo
Agreement No.. D2312550
Amendment 1
Page11ot47
4.4 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) lf 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.
Exhibit A Page 61 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 12 ol 47
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 To-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).
TR9:J p
Water Boards
-
*#
WAIIR BONO 2Ol/a
Exhibit A Page 62 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 13 of47
"Funding for this project has been provided in full or in part by Proposition 1 - the
Water Quality, Supply, and lnfrastructure lmprovement Act of 2014 through an
agreement with the State Water Resources Control Board."
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. lf 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 lnspection 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
(aX2)Notification of Upcoming Meetings,
Workshops, and Trainings
15 Days Prior
(a)(3)Detailed Project Schedule 30 Days After
Execution
(aX4)Periodic and Final Site Visits As Needed
Exhibit A Page 63 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 14 of 47
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
(aX5)Pre-, During, and Post-Construction
Photos
Ongoing
(b)Ge neral Com pl ian ce Req u i rements/P roject Effectiveness and Performance
(bx1)Global Positioning System (GPS)
lnformation
+anuary+gZ6
Februarv 2026
(bx2)Monitoring and Reporting Plan (MRP)Mareh 2024
March 2026
(bX2Xa)Monitoring Plan (MP)Mareh 2024
Complete
(bx2xb)Project Assessment and Evaluation
Plan (PAEP)
eegr+aqf+025
September 2025
(bx4)Quality Assurance Project Plan (QAPP)Mareh 2024
Complete
(bx5)GeoTracker Upload eegruaqf+O25
June 2026
(c)Environmental Compliance and Permitting
(cX1Xa)Draft CEQA Document Septemge+:gZ+
Gomplete
(c )(1 )(b )Final CEQA Document geeemgera*
M
Mav 2025
(cX2)List and Signed Copies of Approvals,
Entitlements or Permits
lansaqf+€25
Mav 2025
(d)Technical Advisory Committee (TAC)
(dx1)List of TAC Members and Their Roles
and Responsibilities
Complete
(dx2)Summary of the Kickoff Meeting lnnt tant t)At)A
vqr ruqr t LvL-
Complete
(dx3)Agendas, Meeting Notes, and Sign-ln
Sheets
Ongoing
(e)Planning, Design, and Engineering
(eX2)Groundwater Fate and Transport
Modeling Report
f*+wPyW.
Complete
Exhibit A Page 64 of 994
City of San Luis Obispo
Agreement No.. D2312550
Amendment 1
Page 15 ol 47
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
(eX3)60% Design Plans and Specifications nugust4o2a
Complete
(eXa)100o/o Design Plans Nevember 2024
March 2025
(eX5)Advertised Bid Documents D€€emb€++€e.4
June 2025
(f)Construction and lmplementation
(fx1)Notice(s) to Proceed lanuary+geS
September 2025
(fx3)Proposed Changes As Needed
(0(4)As-Built Drawings eeg+ua+V+ge6
October 2026
(fX5Xa)Operations and Maintenance
Management Plan
Nevember 2025
Julv 2026
(fx5xb)Testing and Startup Plan Deeember 2025
Julv 2026
(g)Public Outreach
(gX1)Outreach Materials (such as flyers,
posters, brochures, and
advertisements)
lanuaqf:geS
March 2025
(gX2)Public Presentation Meeting Materials As Needed
REPORTS
A.3 Progress Reports Quarterly
4.4 As Needed Reports As Needed
A 5(a)(1)Draft Final Project Report Deeember+fM
September 2026
A.5(aX2)Final Project Report eeUruaqf+M
November 30,
2026
Exhibit A Page 65 of 994
ITEM DESCRIPTION OF SUBMITTAL CRITICAL DUE
DATE
ESTIMATED
DUE DATE
A.5(aX3)Final Project Summary Before Work
Completion
Date
A,8 Final Project lnspection and
Certification
Before Work
Completion
Date
EXHIBIT B _ FUNDING TERMS
8.7(e)Reimbu rsement Requests Quarterly
8.7(i)Final Reimbursement Request Ua+en-l#OZC
Februarv 1.
2027
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 16 of 47
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.
Exhibit A Page 66 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 17 ol 47
EXHIBIT B _ FUNDING TERMS
8.1 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.
8.2 RECIPIENTCONTRIBUTIONS.
The Recipient must pay any and all costs connected with the Project including, without
limitation, any and all Project Costs. lf 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.
8.3 DOUBLE PAYMENT PROHIBITION
lf 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.
8.4 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.
8.5 BUDGET COSTS
Budget costs are contained in the Project Cost table below:
LINE ITEM PROJECT
FUNDING
AMOUNT
TOTAL
PROJECT
COSTS
Direct Project Adm i n istration
Costs
$127 208
$107,650
#ru
$107,650
Plan ning/Desig n/Eng ineering/
Environmental
s?31;1oo
$883.900
$731r{€O
$883,900
Construction/l mplementation $ffi
$6.698.000
$ww
$6.698.000
Monitorinq/Performance $40,000 $40,000
Exhibit B
Page 67 of 994
City of San Luis Obispo
Agreement No.. D2312550
Amendment 1
Page 18 of 47
Education/Outreach $3W
$53.250
$33#50
$53.250
TOTAL $ffi
$7.782.800
$6]6€7€50
$7,782.800
lndirect 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.
8.6 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 ltem 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 (15o/o) 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
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.
8.7 REIMBURSEMENT PROCEDURE.
Except as may be othenrvise 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 B
Page 68 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 19 of47
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 req uirements, includ ing the state cross-cutting req u irements
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)
(4)
The total amount requested;
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, enforceabi I ity, 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
the one provided by the State Water Board will cause a Reimbursement
Request to be disputed. ln 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
Exhibit B
Page 69 of 994
(0
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 20 of 47
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
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.9., 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 Req uest.
(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. ln 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. lnterest shall accrue on
such Project Funds from the date of reimbursement through the date of
mailing of Project Funds to the State Water Board. lf 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. lf the Recipient
fails to do so, then the undisbursed balance of this Agreement may be
deobligated.
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.
0)
Exhibit B
Page 70 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page2l ol47
(t)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 (10Yo) 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.
8.8 REVERTING FUNDS AND DISENCUMBRANCE,
ln 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.
Exhibit B
Page 71 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 22 of 47
EXHIBIT C _ GENERAL TERMS AND CONDITIONS 201g-NOV
GENERAL TERMS AND CONDITIONS 2019-NOV is posted at
https://www.waterboards.ca.qov/water issues/proqrams/grants loans/qeneral 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) lnitiation 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.
a
a
a
a
a
Exhibit C
Page 72 of 994
a
City of San Luis Obispo
Agreement No.. D231 2550
Amendment 1
Page 23 of 47
"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.
o "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 lnstitute 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.
a
a
a
a
a
a
o
o
Exhibit C
Page 73 of 994
a
o
o
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 24 of 47
"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.
o "State" means State of California
o
a
"State Water Board" means the State Water Resources Control Board
"Work Completion" means the Recipient's submittal of allwork 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.
a
o "Year" means calendar year unless othenruise 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;
Exhibit C
Page 74 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 25 of 47
(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) lf 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. ASSIGNABILIry. 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. lf 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. lf 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.
Exhibit C
Page 75 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment I
Page 26 of 47
8. COMPLIANCE WITH APPLICABLE LAWS, RULES, AND REQUIREMENTS. ThC
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.
L 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 othenruise 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
htto ://www.waterboa rds. ca. qov/water is es/oroo ra ms/enforcement/firua/d bo. shtm I
'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. SS 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
Exhibit C
Page 76 of 994
City of San Luis Obispo
Agreement No.: D23'1 2550
Amendment 1
Page27 of47
drug counseling, rehabilitation and employee assistance programs, and penalties that
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. lf 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
lf 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, seryices, 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
Exhibit C
Page 77 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 28 of 47
Agreement requiring the immediate repayment of all funds disbursed
hereunder. Additionally, the Deputy Director of the Division may request an audit and
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. lf
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. lf 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. lf 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, "lndemnified Persons"),
against any loss or liability arising out of any claim or action brought against any
lndemnified 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
Exhibit C
Page 78 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 29 of 47
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
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 lndemnified Persons. The Recipient must also provide for the
defense and indemnification of the lndemnified 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 lndemnified 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 lndemnified
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.
2I.lNDEPENDENT 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.lNSPECT|ON. 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
1 1 135 and the implementing regulations (Cal. Code Regs, tit. 2, S 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,
Exhibit C
Page 79 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 30 of 47
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
Project. lf 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 federalAmerican with Disabilities Act of 1990 and implementing regulations as
required by Government Code section 1 1 135(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, S 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
Exhibit C
Page 80 of 994
City of San Luis Obispo
Agreement No.: D23'1 2550
Amendment 1
Page 31 of 47
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. lf funding for Project Costs
is made available to the Recipient from sources other than this Agreement, the
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. lf 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 lndustrial Relations (DlR) requirements may be found at:
htto://www.dir.ca.oov/lcp.asp. For more information, please refer to DIR's Public Works
Manual at:httn ://www.dir.ca.clov /d lse/PWMa n ua lCom bi ned. odf
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
Exhibit C
Page 81 of 994
City of San Luis Obispo
Agreement No.. D231 2550
Amendment 1
Page 32 of 47
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.
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,
Exhibit C
Page 82 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 33 of 47
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.
39. RIGHTS lN 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. lf 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. ln 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. lf 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.
ln 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. ln the event of termination, interest
Exhibit C
Page 83 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 34 ol 47
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.TlMlNG. 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.
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 httn:/www calhr onrr/em nlovees/Paoes/travel -reimburse mcnfq as,nv 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. ln 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 lf 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:
Exhibit C
Page 84 of 994
City of San Luis Obispo
Agreement No.. D2312550
Amendment 1
Page 35 of 47
htto ://www waterboa rds. ca. oov/waterrio ter issues/oroorams/d rouo hUconservatio
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. WITH HOLDI NG OF DISBU RSEMENTS AND REI MBU RSEM ENTS. Notwithstand ing
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:
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;
0 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.
Exhibit C
Page 85 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 36 of 47
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:
0 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.
"lndirect 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
lndirect 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.
o
a
o
o
a
a
a
a
Exhibit D
Page 86 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page37 of47
o
o
"lnitiation 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.
Exhibit D
Page 87 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 38 of 47
(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)
0)
(t)
(k)
The Recipient has no conflicting or material obligations, except as set forth
in this paragraph.
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.
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.
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 othenruise
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]
Exhibit D
Page 88 of 994
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 39 of 47
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 lnfrastructure lmprovement
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 [RESERVEDI
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.
ln 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.
Exhibit D
Page 89 of 994
City of San Luis Obispo
Agreement No.: D23'1 2550
Amendment 1
Page 40 of 47
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.1O 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.
ln 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
Exhibit D
Page 90 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 41 of 47
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.
Djz 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.oov, of any discovery of any potential
tribal cultural resource, archaeological or historical resource, or human
remains in the Project area. lf 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. ln 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);
Loss, theft, damage, or impairment to Project;
Events of Default, except as othenruise set forth in this section;
(6)
A proceeding or action by a public entity to acquire the Project by
power of eminent domain.
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;
Consideration of dissolution, or disincorporation;
(3)
(4)
(5)
(7)
Exhibit D
Page 91 of 994
(8)
(e)
(10)
(1 1)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(1e)
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 42 of 47
Enforcement actions by or brought on behalf of the State Water
Board or Regional Water Board.
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.
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;
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;
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;
Any Project monitoring, demonstration, or other implementation
activities required in this Agreement;
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;
Any event requiring notice to the Division pursuant to any other
provision of this Agreement;
Failure to observe or perform any covenant or comply with any
condition in this Agreement;
The award of the prime construction contract for the Project; and
the lnitiation of Construction of the Project;
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
Adverse tax opinions, the issuance by the lnternal Revenue Service
or proposed or final determinations of taxability, Notices of
Proposed lssue (lRS Form 5701-TEB) or other material notices of
determinations with respect to the tax status of any tax-exempt
bonds;
Exhibit D
Page 92 of 994
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 43 of 47
(20) Work Completion and Project Completion
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, S 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
Exhibit D
Page 93 of 994
City of San Luis Obispo
Agreement No.. D2312550
Amendment 1
Page 44 ol 47
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
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.qov.ca.qov/wp-
co nte nVu o loads I 2022 I 03 I 3.4 .22 ssia-U krai ne-Executive-Order. odf and the sanctions
identified on the United States Department of the Treasury website
(https://home.treasury.qov/policv-issues/financial-sanctions/sanctions-proorams-and-
countrv-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
Exhibit D
Page 94 of 994
a
City of San Luis Obispo
Agreement No.: D231 2550
Amendment 1
Page 45 of 47
Eminent Domain Prohibited. (Wat. Code, S 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.
Governor's Infrastructure Plan. (Gov. Code, S 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, S 10920.) The Recipient shall comply with
Water Code section 10920 et seq., which requires groundwater monitoring and
reporting of g roundwater elevations.
Remediation Costs Limited. (Wat. Code, 579771.) 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 lf, after July 1 ,2017, the Project is or will be located in a non-adjudicated
h ig h- or med i um-priority Cal iforn ia 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, S 10735.2 (a)(1))
o lf, 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 lf, 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, S 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.
a
a
a
a
Exhibit D
Page 95 of 994
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.
a
a
o
City of San Luis Obispo
Agreement No.: D2312550
Amendment 1
Page 46 of 47
Water Quality Monitoring. (Wat. Code, S 79704.) lf 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
consistent with surface water monitoring data systems or groundwater monitoring
data systems administered by the State Water Board.
Wild and Scenic Rivers. (Wat. Code, S 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.
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 lndustrial Relations
requirements, including requirements setforth 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, S 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.
a
a
o
o
o
o
a
Exhibit D
Page 96 of 994
o
a
a
a
City of San Luis Obispo
Agreement No.: D2312550
Amendment I
Page 47 of 47
Agricultural Water Management Plan Consistency requirements, including the
requirements of Water Code, section 10852.
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.
Exhibit D
Page 97 of 994
Page 98 of 994