HomeMy WebLinkAboutContracts & Agreements_180a-2007_CCv0001.pdf Proposition 50 Public Agency Grant
Funding Agreement No. 50086B02
RECEIVED
JUN 0 6 2008
STATE OF CALIFORNIA SAFE DRINKING
WATER OFFICE
THE RESOURCES AGENCY
DEPARTMENT OF WATER RESOURCES
FUNDING AGREEMENT
BETWEEN
THE STATE OF CALIFORNIA
DEPARTMENT OF WATER
AND
CITY OF REDLANDS
PROJECT NUMBER P50-3610037-056
FOR A GRANT UNDER CHAPTER 6b OF THE WATER SECURITY, CLEAN DRINKING
WATER, COASTAL AND BEACH PROTECTION ACT OF 2002
Funding Agreement No. 50086B02
TABLE OF CONTENTS
Section Page
1 . Purpose of Funding .. 1
2. Incorporation of Other Documents 2
3. Project Cost 2
4. Grant Amount 2
5. Supplier's Cost and Matching Funds .. 2
6. Competitive Bidding 3
7. Requirements for Disbursement 3
8. Special Terms and Conditions 3
9. Project Officials and Notices 3
10. Enforcement 5
11. Miscellaneous Provisions 5
EXHIBIT A
STANDARD CONDITIONS
Article Page
A- 1. Definitions .... 7
A- 2. Term of Agreement 7
A- 3. Basic Conditions Precedent 7
A- 4. Compliance with Laws, Regulations, and Permit Requirements 8
A- 5. Project Changes 8
Funding Agreement No. 50086B02
TABLE OF CONTENTS (continued)
Article Page
A- 6. Disbursements by State 8
(a) Claims 8
(b) Disbursement 9
(c) Rejection of Claims 9
(d) Correction of Claims 9
(e) Adjustments to Claims 9
(f) Final Claim and Disbursement 9
(g) Force Account 10
A- 7. Withholding of Grant Disbursements by State and Cancellation
of Agreement 10
(a) Conditions for Withholding 10
(b) Withholding Entire Grant Amount 10
(c) Withholding Balance of Grant Amount 11
A- 8. Timing of Project 11
A- 9. Supplier's Contracts 11
A-10. Audit and Inspection of Books and Records 11
A-11. Remittance of Funds By Supplier 12
A-12. Accounting and Deposit of Grant Disbursements 12
(a) Separate Accounting of Grant Disbursements 12
(b) Disposition of Funds Disbursed 12
(c) Interim and Final Audits 12
A-13. Inspections of Project by State 13
A-14. Prohibition Against Disposal of Project Without State Permission 13
A-15. Nondiscrimination Clause 13
A-16. Workers' Compensation Clause 14
A-17. Successors and Assigns 14
A-18. State to be Held Harmless............... ....... ...................... ........ ...... 14
A-19. Remedies Not Exclusive......................................... . ..... 1 5
Funding Agreement No. 50066B02
TABLE OF CONTENTS (continued)
Article Page
A-20. Amendments 15
A-21. Waiver of Rights .. 15
A-22. Dispute Clause 15
A-23. Performance and Assurances 15
A-24. Default Provisions 15
A-25. Child Support Compliance Act 16
A-26. Drug-Free Workplace Certification 17
A-27. Conflict of Interest--Current and Former State Employees 17
(a) Current State Officers and Employees 17
(b) Former State Officers and Employees 18
A-28. Additional Insured 19
A-29. Prohibited Use of State Funds for Software 19
A-30 Labor Compliance ...... 19
EXHIBIT B
SPECIAL TERMS AND CONDITIONS
Article Page
B- 1. 20
EXHIBIT C
STATEMENT OF WORK
Article Page
C- 1. Project Goals and Objectives 22
C- 2. Project Description 22
C- 3. Tasks............... .......................................................................................... 23
C- 4. Potential Benefits....................................................................................................... 24
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Funding Agreement No. 50086B02
C- 5. Deliverables 25
Al I ACHMENTS
1. Budget and Expenditure Summary (Article A-3(c))
2. Claim form (Article A-6(a))
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Funding Agreement No. 50086B02
STATE OF CALIFORNIA
THE RESOURCES AGENCY
DEPARTMENT OF WATER RESOURCES
FUNDING AGREEMENT
BETWEEN
STATE OF CALIFORNIA
DEPARTMENT OF WATER RESOURCES
AND
CITY OF REDLANDS
PROJECT NUMBER P50-3610037-056
UNDER CHAPTER 6b OF THE WATER SECURITY, CLEAN DRINKING WATER,
COASTAL AND BEACH PROTECTION ACT OF 2002
THIS AGREEMENT, is entered into between the State of California
Department of Water Resources herein referred to as "State", and City Of Redlands, a
public agency, in the County of San Bernardino State of California, duly organized,
existing, and acting pursuant to the laws thereof, herein referred to as "Supplier", which
parties do hereby agree as follows:
SECTION 1. PURPOSE OF FUNDING
This Agreement provides funding in the form of a grant made by State to the
Supplier under the provisions of the Water Security, Clean Drinking Water, Coastal and
Beach Protection Act of 2002, Division 26.5 of the Water Code, commencing with
Section 79500, (herein referred to as the "Act") The purpose of the grant is to assist in
financing the cost of activities (the "Project") pursuant to Section 79545(b) and/or
79545(c) of the Water Code. Grant funds may be used only for such Eligible Project
Costs as are approved by the State California Department of Public Health.
Funding Agreement No. 50086B02
Supplier is solely responsible for the completion of the Investigation; and for all
persons or entities engaged in such work, including but not limited to subcontractors,
suppliers, and providers of services. Review or approval of plans, specifications, bid
documents or other documents by the State is solely for the purpose of proper
administration of the grant funds by the State and shall not be deemed to relieve or
restrict the Supplier's responsibility.
Supplier is solely responsible for the completion of the Project; and for all
persons or entities engaged in such work, including but not limited to subcontractors,
suppliers, and providers of services. Review or approval of plans, specifications, bid
documents or other documents by the State is solely for the purpose of proper
administration of the grant funds by the State and shall not be deemed to relieve or
restrict the Supplier's responsibility.
SECTION 2. INCORPORATION OF OTHER DOCUMENTS
This Agreement incorporates by this reference Exhibit A, "Standard Conditions";
Exhibit B, "Special Terms and Conditions"; Exhibit C, "Statement of Work"; Supplier's
"California Department of Public Health Proposition 50 Program Application for
Funding"; project plans and specifications as submitted to and approved by State; and
any attachments to said documents.
Supplier accepts and agrees to comply with all terms, provisions, conditions, and
commitments of this Agreement, including all incorporated documents and exhibits
thereto, and to fulfill all assurances, declarations, representations, and statements
made by Supplier in its application, documents, amendments, and communications filed
in support of its request for funding, including but not limited to any and all plans and
specifications submitted to and approved by State.
SECTION 3. PROJECT COST
Supplier represents that the total cost of the Project is estimated to be
$2,372,551 of which State agrees that $2,372,551 is the total Eligible Project Costs.
SECTION 4. GRANT AMOUNT
Subject to the availability of funds and in accordance with the terms of this
Agreement, State will provide grant funding to Supplier in an amount not to exceed
1,172,551, herein referred to as "Grant Amount".
SECTION 5. SUPPLIER'S COST AND MATCHING FUNDS
Supplier agrees to fund any project costs which are in excess of the Grant
Amount set forth in Section 4 of this Agreement. Matching funds are incurred Eligible
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Funding Agreement No. 50086B02
Project Costs paid, or to be paid, with non-State funds, herein referred to as "Matching
Funds". Unless otherwise noted in Exhibit B, Matching Funds are required. Supplier
must provide Matching Funds in an amount not less than the Grant Amount. Supplier's
Cost for this Project, including Matching Funds, is estimated to be $1,200,000, herein
referred to as "Supplier's Cost". Each disbursement of grant funds is expressly
conditioned upon Supplier's demonstration that it has incurred an equal amount of
costs approved by State as Matching Funds.
SECTION 6. COMPETITIVE BIDDING
All construction contracts related in any way to the Project shall be let by
competitive bid procedures which assure award of such contracts to the lowest
responsible bidders. Supplier shall comply with all applicable state, or local ordinances
for competitive bidding and all applicable labor laws.
Supplier shall not award a contract until a summary of bids and identification of
the lowest responsible bidder are submitted to State. A full explanation must be
provided if Supplier is proposing to award a contract to anyone other than the lowest
responsible bidder.
SECTION 7. REQUIREMENTS FOR DISBURSEMENT
By October 30, 2008, Supplier shall satisfy all conditions precedent to the
disbursement of funds under this Agreement, including Basic Conditions Precedent as
set forth in Article A-3 of the Standard Conditions. Failure by Supplier to satisfy said
conditions and requirements by this date may, at the option of State, result in
cancellation of this Agreement under Article A-7 of the Standard Conditions and/or
declaration that Supplier is in default pursuant to Article A-24 of the Standard
Conditions.
SECTION 8. SPECIAL TERMS AND CONDITIONS
Supplier shall satisfy the special terms and conditions set forth in Exhibit B.
Failure by Supplier to timely satisfy the special terms and conditions may, at the option
of State, result in cancellation of this Agreement under Article A-7 of the Standard
Conditions, and/or declaration that Supplier is in default pursuant to Article A-24 of the
Standard Conditions.
SECTION 9. PROJECT OFFICIALS AND NOTICES
State's Contract Manager shall be the Chief, Division of Fiscal Services of the
Department of Water Resources,
State's Contract Manager shall be State's representative for administration of
this Agreement, and shall have authority to make determinations and findings with
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Funding Agreement No. 50086B02
respect to each controversy arising under or in connection with this Agreement,
including but not limited to, interpretation, performance, or payment. Disputes shall be
resolved in accordance with Article A-22.
Supplier's Contract Manager shall be its Capital Projects Manager. Supplier's
Contract Manager shall be Supplier's representative for administration of this
Agreement. All communications given to Supplier's Contract Manager shall be deemed
given to Supplier and shall be binding on Supplier.
Either party may change its Contract Manager upon written notice to the other
party.
Either party's Contract Manager may provide to the other written delegation of
authority, for employees, agents, or representatives to act on that party's behalf, within
the scope of such delegation.
Notices required to be given in writing by Supplier under this Agreement shall be
sent to:
State of California
Department of Water Resources
Safe Drinking Water Office, Room 816
Attention: Program Manager
Post Office Box 942836
Sacramento, California 94236-0001
Notices required to be given in writing by State under this Agreement shall be
sent to:
Capital Projects Manager
City of Redlands
Post Office Box 3005
Redlands, California 92373
A change of address for delivery of notice may be made by either party by
written notice to the other party.
All written notices that are required either expressly or by implication to be given
by one party to the other under this Agreement shall be signed for State by its Contract
Manager and for Supplier by its Contract Manager. Except as otherwise expressly
required by this Agreement, all such notices shall be deemed to have been given if
delivered personally or if enclosed in a properly addressed postage prepaid envelope
and deposited in a United States Post Office facility for delivery by registered or certified
mail and deemed received five days after the date of mailing.
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Funding Agreement No. 50086B02
SECTION 10. ENFORCEMENT
Any enforcement action, arising out of or relating to this Agreement, may be
brought by State or any agent thereof.
SECTION 11. MISCELLANEOUS PROVISIONS
ATTORNEY FEES
In the event either party commences an action or proceeding concerning the
subject matter of this Agreement, the prevailing party in such action or proceeding shall
be entitled to recover reasonable attorney fees incurred therein.
SEVERABILITY
If any provision of this Agreement is held invalid or unenforceable by any court of
final jurisdiction, it is the intent of the parties that all other provisions of this Agreement
be construed to remain fully valid, enforceable, and binding on the parties.
GOVERNING LAW
This Agreement is governed by and shall be interpreted in accordance with the
laws of the State of California.
LEGAL CAPACITY
Supplier hereby warrants and represents that it is a legal entity in good standing,
and that it has the authority to enter into this Agreement.
Supplier shall notify State as promptly as feasible of any proposed change in
Supplier's ownership, organization, legal form or service area.
VENUE
The parties agree that venue of any action between the parties arising out of this
Agreement, including disputes that may arise following termination of the Agreement,
shall be County of Sacramento, State of California.
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Funding Agreement No, 50086802
DATE OF EXECUTION
Date of Execution of this Agreement is the date of the latest in time execution by
a party hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement:
I yi)
(tit
Approved as to Legal Form STATE OF CALIFORNIA
and Sufficiency: CALIFORNIA DEPARTMENT OF PUBLIC
HEALTH
B y litt9 40/
By zAJZ
Chief Counsel Perla Netto Brown, Chie
Department of Water Resources Division of Fiscal Services
Sacramento, California
Date 30 /). Date ‘0 3011.CO '
City of Redlands
Supplier ATTEST TO CITY OF REDLANDS MAYOR
By
Signature Lorrie 'Poyter City Clerk
Jin Harrison 'J
Print Name
Mayor
Title
Post Office Box 3005
Address
Redlands, California 92373
Date June 3, 2008
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Funding Agreement No. 50086B02
EXHIBIT A
STANDARD CONDITIONS
ARTICLE A-1. DEFINITIONS
Whenever in this Agreement the following terms are used, their meaning shall be
as follows unless the context clearly requires otherwise:
Agreement --The Funding Agreement to which this Exhibit A "Standard
Conditions" is appended.
Days--Calendar days unless otherwise expressly indicated.
Month--Calendar month unless otherwise expressly indicated.
Year--Calendar year unless otherwise expressly indicated.
Eligible Project Costs--Those project costs which are eligible for funding under
the Act and applicable State law and implementing criteria.
Force Account--The use of Supplier's own employees or equipment on the
Project.
Grant Amount--The total amount disbursed to Supplier under this Agreement.
Public Water System or Public Water Supply System--A system for the provision
to the public of water for human consumption, as defined in Part 12, Chapter 4
(commencing with Section 116270), of Division 104 of the Health and Safety Code, as it
may be amended.
ARTICLE A-2. TERM OF AGREEMENT
Subject to the provisions of Article A-7, this Agreement shall become effective on
the date of its execution and shall remain in effect until the expiration of the period of
time required for operation and maintenance of the Project, as set forth in Section 9 of
this Agreement.
ARTICLE A-3. BASIC CONDITIONS PRECEDENT
State shall have no obligation to disburse funds under this Agreement unless
and until:
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Funding Agreement No. 50086B02
(a) Supplier has provided satisfactory documentation of the action taken by its
governing body authorizing it to enter into this Agreement, and designating a
representative to execute this Agreement and to sign a claim for disbursement of
funds.
(b) Supplier has provided detailed information concerning the account
established for deposit of funds received from State.
(c) Supplier has submitted an initial budget approved by State in the form of
Attachment 1 to this Agreement.
ARTICLE A-4. COMPLIANCE WITH LAWS, REGULATIONS, AND PERMIT
REQUIREMENTS
Supplier shall at all times comply with, and require its contractors and
subcontractors to comply with, all applicable federal and state laws, rules and
regulations, permits, and all applicable local ordinances, including, but not limited to,
environmental, labor, procurement and safety laws, rules, regulations, permits, and
ordinances.
ARTICLE A-5. PROJECT CHANGES
A substantial change in the scope of the Project shall not be permitted without
prior written approval of the State.
ARTICLE A-6. DISBURSEMENTS BY STATE
(a) Claims
Supplier shall request disbursement by submitting to State a claim(s) for incurred
Eligible Project Costs. A claim for disbursement of funds shall be provided in the form
of Attachment 2 to this Agreement and shall not be submitted more than once a month
and shall include:
(1) a statement with supporting documentation of Eligible Project Costs that
have been incurred during the period identified in the particular claim, including,
but not limited to construction, legal, engineering, and administrative fees
associated with the Project;
(2) a statement, with supporting documentation, demonstrating that Matching
Funds equal to the amount of the claim have been incurred.
(b) Disbursements
Following the review and approval of a claim by State, it will disburse to Supplier
an approved amount, subject to any retention requirements specified in Exhibit B,
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Funding Agreement No. 50086B02
Special Terms and Conditions, and subject to the availability of funds. Any and all
funds disbursed to Supplier under this Agreement, and any and all interest earned by
Supplier on such funds, shall be used solely to pay Eligible Project Costs.
(c) Rejection of Claims
A claim may be rejected by State if:
(1) it is submitted without signature;
(2) it is submitted under signature of a person other than Supplier's duly
authorized representative;
(3) Supplier fails to timely submit a final claim within the time period specified
in Article A-6(f);
(4) Supplier fails to adequately demonstrate required Matching Funds.
State will notify Supplier of any claim so rejected, and the reasons therefore.
(d) Correction of Claims
A claim containing a mathematical error will be corrected by State, after
telephone notification to Supplier, and will thereafter be treated as if submitted in the
corrected amount. State will confirm correction of the error, to Supplier, in writing.
(e) Adiustments to Claims
If upon review of a claim State determines that any portion or portions of the
costs claimed are ineligible to be funded under the Act, State law, implementing criteria,
or the terms of this Agreement, State will notify Supplier, by certified or registered mail,
of its determination concerning Supplier's failure to adequately document costs as
Eligible Project Costs. Supplier may, within thirty (30) days of the date of receipt of
such notice, submit additional documentation or evidence to cure such deficiency(ies).
If Supplier does not submit additional information, or if State determines such additional
information to be inadequate, State will adjust the pending claim by the amount of the
ineligible cost(s).
Supplier may submit additional documentation or evidence, and resubmit any such
rejected costs on a subsequent claim.
(f) Final Claim and Disbursement
Not later than six (6) months from the Project Completion Date, as set forth in
Article A-8, Supplier shall submit a final claim. With the final claim, Supplier shall
provide:
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Funding Agreement No. 50086B02
(1) A statement of full written disclosure of all sources and amounts of funds
contributed to the Project;
(2)A certification by Supplier's Contract Manager that the data disclosed is
true and correct;
(3) Proof of a Recorded Notice of Completion;
Should Supplier fail to make the full disclosure and certification required by parts
1 and 2 of this paragraph (f), or should State become aware through any means that
Supplier did not disclose all funding sources for the project, the project may be referred
to the California Department of Finance for a full project audit.
(g) Force Account
Costs of construction or construction related activities performed by Force
Account, if determined by State, in its sole discretion, to be Eligible Project Costs, may
be used as Matching Funds, but are not eligible for grant funding under the terms of this
Agreement.
Costs of engineering, legal, and administrative activities performed by Force
Account, if determined by State, in its sole discretion, to be Eligible Project Costs, may
be used as Matching Funds or may be eligible for grant funding pursuant to the terms of
this Agreement.
When Supplier uses the services of its own employees, Supplier shall establish
accounts and maintain records which reasonably document all employee hours and
costs charged to the Project and the associated tasks performed by each employee.
ARTICLE A-7. WITHHOLDING OF GRANT DISBURSEMENTS BY STATE AND
CANCELLATION OF AGREEMENT
(a) Conditions for Withholding
If State determines that the Project is not being carried out substantially in
accordance with the provisions of this Agreement or that Supplier has failed in any
other respect to comply with the terms and conditions of this Agreement, State may
give written notice of such failure to comply. If Supplier does not cure any such failure
to State's satisfaction within ten (10) calendar days of receipt of such notice, State may
withhold from the Supplier all or any portion of the grant funding and take any other
action that it deems necessary to protect its interests, including but not limited to
declaring Supplier in default as set forth in Article A-24, or canceling this Agreement
pursuant to Subpart (b) of this Article A-7.
(b) Withholding Entire Grant Amount
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Funding Agreement No. 50086B02
If State determines to withhold the entire Grant Amount from Supplier pursuant
to Subpart (a) of this Article A-7, notice of such a determination shall constitute a notice
of cancellation of this Agreement, and this Agreement shall no longer be binding on any
party hereto. Said Notice of Cancellation shall be sent to Supplier by certified or
registered mail, and shall be effective upon receipt.
(c) Withholding Balance of Grant Amount
When a portion of the grant amount has been disbursed to Supplier and State
determines to withhold funding, State will notify Supplier in writing, via certified or
registered mail, that State is withholding the balance of the funding from Supplier,
pursuant to Subpart (a) of this Article A-7. In such event, Supplier will be deemed to be
in default and subject to the provisions of Article A-24.
ARTICLE A-8. TIMING OF PROJECT
Supplier shall submit a report to State no later than April 30, 2011. Said date
may be extended only by written amendment to this Agreement and only to the extent
provided by applicable law. Supplier's failure to meet this date may, at the option of the
State, be considered a material breach of agreement and maybe treated as a default
under Article A-24.
The Project will be deemed to be completed when State approves the report,
and the date of such approval is herein known as the Project Completion Date.
ARTICLE A-9. SUPPLIER'S CONTRACTS
Supplier shall be solely responsible for resolution of any and all disputes arising
out of or related to Supplier's construction and contracts for construction of the Project,
including but not limited to bid disputes and payment disputes with Supplier's
contractors and subcontractors and shall provide appropriate releases (as set forth in
California Civil Code Title 15) or other applicable law as may be requested by State.
ARTICLE A-10. AUDIT AND INSPECTION OF BOOKS AND RECORDS
(a) Upon execution of this Agreement and until 3 years following final
disbursement under this Agreement, pursuant to Government Code Section 8546.7, the
parties shall be subject to the examination and audit by State or any agent thereof, and
the State Auditor, with respect to all matters connected with the performance of this
Agreement, including, but not limited to, the cost of administering this Agreement. If
any litigation, claim, negotiation, audit or other action is commenced before the
expiration of said three (3) year period, all records must be retained until such action is
resolved, or until the end of said three (3) year period whichever shall later occur. All
records of Supplier relating in any way to funding received pursuant to this Agreement
shall be preserved for this purpose.
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Funding Agreement No. 50086B02
(b) During regular office hours, each of the parties hereto and their duly
authorized representatives shall have the right to inspect and to make copies of any
books, records, or reports of either party pertaining to this agreement or matters related
hereto. Each of the parties hereto shall maintain and shall make available at all times
for such inspection accurate records of all its costs, disbursements, and receipts with
respect to its activities under this Agreement. Failure or refusal by Supplier to comply
with this provision shall be considered a substantial failure to comply with this
Agreement, State may declare Supplier in default as set forth in Article A-24, withhold
disbursements to Supplier, or take any other action it deems necessary to protect its
interests. The provisions of this Subpart (b) shall be effective until expiration of the time
period provided in Subpart (a) of this Article A-10.
ARTICLE A-11. REMITTANCE OF FUNDS BY SUPPLIER
Within thirty (30) days following the date of final disbursement of funds, Supplier
shall remit to State any funds that were disbursed under this Agreement and were not
utilized to pay Eligible Project Costs. Such funds will not be included in the Grant
Amount.
ARTICLE A-12. ACCOUNTING AND DEPOSIT OF GRANT DISBURSEMENTS
(a) Separate Accounting of Grant Disbursements
Supplier shall account for the funds disbursed pursuant to this Agreement
separately from all other Supplier's funds. Supplier shall maintain accounting
procedures that are in accordance with Generally Accepted Accounting Principles.
Supplier shall keep complete and accurate records of all receipts, disbursements, and
interest earned on such funds.
Supplier shall require its agents, contractors and subcontractors to maintain
books, records, and other documents pertinent to their work in accordance with
Generally Accepted Accounting Principles. Such records shall be subject to inspection
by State at any and all reasonable times.
(b) Disposition of Funds Disbursed
In addition to specific requirements set forth in this Agreement, all funds
disbursed pursuant to this Agreement shall be deposited, administered, and accounted
for pursuant to all provisions of law applicable to Supplier.
(c) Interim and Final Audits
In addition to the provisions of Article A-10, at any time following execution of this
Agreement and until completion of the Project, or final disbursement whichever shall
occur last, State reserves the right to conduct an audit of Supplier's disposition of all
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Funding Agreement No. 50086B02
funds disbursed under this Agreement. After completion of the Project, State may
require Supplier to conduct a final audit, at Supplier's expense, such audit to be
conducted by and a report prepared by an independent Certified Public Accountant.
Failure or refusal by Supplier to comply with these provisions shall be considered
a substantial breach of this Agreement.
ARTICLE A-13. INSPECTIONS OF PROJECT BY STATE
State shall have the right but not the duty to inspect the work being performed on
the Project at any and all reasonable times during the term of this Agreement. This
right shall extend to any subcontracts, and Supplier shall include provisions ensuring
such access in all its contracts or subcontracts related to the Project.
ARTICLE A-14. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT
STATE PERMISSION
During the term of this Agreement Supplier shall not sell, abandon, lease,
transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all
or any portion of any real or other property necessarily connected or used in
conjunction with the Project, without prior written consent of State.
ARTICLE A-15. NONDISCRIMINATION CLAUSE
During the performance of this Agreement, Supplier, its contractors and
subcontractors, shall not deny the Agreement's benefits to any person on the basis of
religion, color, ethnic group identification, sex, age, physical or mental disability, nor
shall they discriminate unlawfully against any employee or applicant for employment
because of race, religion, color, national origin, ancestry, physical handicap, mental
disability, medical condition, marital status, age, or sex. Supplier, its contractors and
subcontractors shall ensure that the evaluation and treatment of employees and
applicants for employment are free of such discrimination.
Supplier, its contractors and subcontractors shall comply with the provisions of
the Fair Employment and Housing Act (Government Code, Section 12900 et seq.), the
regulations promulgated thereunder (California Code of Regulations, Title 2, Section
7285.0 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the
Government Code (Government Code, Sections 11135-11139.5) and the regulations or
standards adopted by the awarding State Agency to implement such article.
By signing this Agreement, Supplier assures State that it shall comply with the
requirements of the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101 et
seq.), which prohibits discrimination on the basis of disability, as well as all applicable
regulations and guidelines issued pursuant to the ADA; the Civil Rights Act of 1964, as
amended, 42 U.S.C. 2000d (1988) et seq.; Section 504 of the Rehabilitation Act of
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Funding Agreement No.50086B02
1973, as amended, 29 U.S.C. 794 (1989); Federal Water Pollution Control Act
Amendments of 1972, Pub.L. No. 92-500, 86 Stat 816; and the Age Discrimination Act
of 1975, as amended, 42 U.S.C. 6102 (1994); together with all applicable regulations
and guidelines adopted to implement same. Said group of laws and requirements are
collectively referred to in this Agreement as the "anti-discrimination laws".
Supplier agrees to collect and maintain information to show compliance with the
"anti-discrimination laws" including a list of discrimination complaints, reports of any
compliance reviews conducted by other agencies descriptions of any pending
discrimination-based lawsuits and data on the racial, ethnic, national origin, sex and
handicap characteristics of the population it serves.
Supplier, its contractors and subcontractors shall give written notice of their
obligations under this Article to labor organizations with which they have a collective
bargaining or other agreement.
Suppliers signature on this Agreement shall constitute a certification under
penalty of perjury under the laws of the State of California that Supplier has, unless
exempted, complied with the nondiscrimination program requirements of Government
Code, Section 12990, and Title 2, California Code of Regulations, Section 8103.
Supplier shall include the nondiscrimination and compliance provisions of this
Article A-15 in all contracts and subcontracts to perform work on the Project.
ARTICLE A-16. WORKERS' COMPENSATION CLAUSE
Supplier affirms that it is aware of the provisions of Section 3700 of the California
Labor Code, which requires every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of that
code, and Supplier affirms that it will comply with such provisions before commencing
performance of work under this Agreement and will make its contractors and
subcontractors aware of and comply with this provision.
ARTICLE A-17. SUCCESSORS AND ASSIGNS
This Agreement and all of its provisions shall inure to the benefit of, apply to, and
bind the heirs, successors and assigns of the parties hereto. No assignment or transfer
of this Agreement or any part hereof by Supplier shall be valid unless and until it is
approved by State and made subject to such reasonable terms and conditions as State
may impose.
ARTICLE A-18. STATE TO BE HELD HARMLESS
Supplier shall indemnify, hold harmless, protect and defend State and its
officers, employees, agents and representatives from any loss, suit, action or claim
brought for, or on account of any violation of law, ordinance, rule, or regulation, or any
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Funding Agreement No. 50086B02
injury, damage, or loss, including death, caused by acts or omissions of Supplier, its
employees, contractors, or agents; or in any way arising from, or related to the Project.
ARTICLE A-19. REMEDIES NOT EXCLUSIVE
The use by either party of any remedy specified herein for the enforcement of
this Agreement is not exclusive, and shall not deprive the party using such remedy of,
or limit the application of, any other remedy provided by law.
ARTICLE A-20. AMENDMENTS
This Agreement may be amended only by mutual written agreement signed by
the parties hereto. Requests by Supplier for amendments must be in writing stating the
amendment request and the reason for the request.
ARTICLE A-21. WAIVER OF RIGHTS
It is the intention of the parties hereto that from time to time either party may
waive any of its rights under this Agreement unless contrary to law. Any waiver by
either party hereto of rights arising in connection with this Agreement shall not be
deemed to be a waiver with respect to any other rights or matters.
ARTICLE A-22. DISPUTE CLAUSE
Any dispute that Supplier may have regarding the performance of this
Agreement shall be submitted to State's Contract Manager. State's Contract Manager
may meet with Supplier and attempt to negotiate a resolution of such dispute. Any
such resolution may be incorporated in an amendment to this Agreement.
ARTICLE A-23. PERFORMANCE AND ASSURANCES
Supplier agrees to faithfully and expeditiously perform or cause to be performed
all Project work as described in the final plans and specifications as submitted to and
approved by State, and to apply funds received only to Eligible Project Costs and to
operate and maintain the Project in accordance with applicable provisions of the law.
ARTICLE A-24. DEFAULT PROVISIONS
(a) Supplier will be in default under this Agreement if any of the following occur:
(1) Supplier's failure to make any remittances required by this Agreement;
(2) Supplier's substantial breach of this Agreement, or any supplement or
amendment to it;
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Funding Agreement No. 50086B02
(3) Supplier's making of any false warranty, representation, or statement with
respect to this Agreement or the Project;
(4) Dissolution or cessation of operations by Supplier, termination of
Suppliers existence, insolvency of Supplier, or filing of a voluntary or involuntary
bankruptcy petition by or on behalf of Supplier; and/or
(5) Suppliers failure to provide required Matching Funds.
(b) When an event of default occurs, State may give Supplier notice of default.
Supplier shall have ten (10) calendar days from the date of such notice to cure the
default. If Supplier fails to timely cure the default to the satisfaction of State, then State
may do any or all of the following:
(1) Declare that any and all amounts disbursed to Supplier under the terms of
this Agreement shall be deemed an obligation of Supplier and due and payable
to State;
(2) Declare Suppliers obligations immediately due and payable, with or
without demand or notice to Supplier, which Supplier expressly waives;
(3) Terminate any obligation of State to make further disbursements to
Supplier under this Agreement;
(4) Perform any of Supplier's obligations under this Agreement for Suppliers
account; and/or
(5) Take any other action it deems necessary to protect its interests.
(c) Supplier agrees that any remedy provided in this Agreement is in addition to
and not in derogation of any other legal or equitable remedy available to State as a
result of a breach of agreement by Supplier, whether such breach occurs before or after
completion of the Project.
(d) No waiver by State of any breach or default will be a waiver of any other
breach or default.
ARTICLE A-25. CHILD SUPPORT COMPLIANCE ACT
Supplier acknowledges that it is the policy of this state that anyone who enters
into a contract with a state agency shall recognize the importance of child and family
support obligations and shall fully comply with alt applicable state and federal laws
relating to child and family support enforcement, including, but not limited to, disclosure
of information and compliance with earnings assignment orders, as provided in Chapter
8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code. Supplier
further acknowledges that to the best of its knowledge it is fully complying with the
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earnings assignment orders of all employees and is providing the names of all new
employees to the New Hire Registry maintained by the Employment Development
Department.
ARTICLE A-26. DRUG-FREE WORKPLACE CERTIFICATION
By signing this Agreement, Supplier hereby certifies under penalty of perjury
under the laws of the State of California that Supplier will comply with the requirements
of the Drug-Free Workplace Act of 1990 (Government Code Section 8350 et seq.)and
will provide a drug-free workplace by taking the following actions:
(a) Publish a statement notifying employees that unlawful manufacture,
distribution, dispensation, possession, or use of a controlled substance is prohibited
and specifying actions to be taken against employees for violations.
(b) Establish a Drug-Free Awareness program to inform employees about all of
the following:
(1) The dangers of drug abuse in the workplace;
(2) The person's or organization's policy of maintaining a drug-free
workplace;
(3) Any available counseling, rehabilitation and employee assistance
programs;
(4) Penalties that may be imposed upon employees for drug abuse violations.
(c) Every employee who works on the Project:
(1) Shall be issued a copy of Supplier's drug-free policy statement;
(2) Shall agree to abide by terms of Supplier's statement as a condition of
employment on the Project.
This Agreement may be subject to suspension of payments or termination, or
both, and Supplier may be subject to debarment if State determines that: (1) Supplier
has made a false certification, or (2) Supplier has violated the certification by failing to
carry out the requirements of this Article A-25.
ARTICLE A-27. CONFLICT OF INTEREST--CURRENT AND FORMER STATE
EMPLOYEES
(a) Current State Officers and Employees:
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Funding Agreement No. 50086B02
(1) Supplier shall not utilize in the performance of this Agreement any state
officer or employee in the state civil service or other appointed state official unless the
employment, activity, or enterprise is required as a condition of the officer or
employee's regular state employment. Employee in the state civil service is defined to
be any person legally holding a permanent or intermittent position in the state civil
service.
(2) If any state officer or employee is utilized or employed in the performance
of this Agreement, Supplier shall first obtain written verification from State that the
employment, activity, or enterprise is required as a condition of the officer's,
employee's, or official's regular state employment and shall keep said verification on file
for three (3) years after the termination of this Agreement.
(3) Supplier may not accept occasional work from any currently employed
state officer, employee, or official.
(4) If Supplier accepts volunteer work from any currently employed state
officer, employee, or official, Supplier may not reimburse, or otherwise pay or
compensate, such person for expenses incurred, including, without limitation, travel
expenses, per diem, or the like, in connection with volunteer work on behalf of Supplier.
(5) Supplier shall not employ any state officers, employees, or officials who
are on paid or unpaid leave of absence from their regular state employment.
(6) Supplier or anyone having a financial interest in the Agreement may not
become a state officer, employee, or official during the term of this Agreement.
Supplier shall notify each of its employees, and any other person having a financial
interest in this Agreement that it is unlawful under the Public Contract Code for such
person to become a state officer, employee, or official during the term of this
Agreement unless any relationship with the Supplier giving rise to a financial interest, as
an employee or otherwise, is first terminated.
(7) Occasional or one-time reimbursement of a state employee's travel
expenses is not acceptable.
(b) Former State Officers and Employees:
(1) Supplier shall not utilize in the performance of this Agreement any
formerly employed person of any state agency or department that was employed under
the state civil service, or otherwise appointed to serve in the State Government, if that
person was engaged in any negotiations, transactions, planning, arrangement, or any
part of the decision making process relevant to the Agreement while employed in any
capacity by any state agency or department. This prohibition shall apply for a two (2)
year period beginning on the date the person left state employment.
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Funding Agreement No. 50086B02
(2) Supplier shall not utilize within twelve (12) months from the date of
separation from services, a former employee of the contracting state agency or
department if that former employee was employed in a policy making position in the
same general subject area as the proposed Agreement within the twelve (12) month
period prior to the employee leaving state service.
ARTICLE A-28. ADDITIONAL INSURED
Throughout the life of the Project, the Supplier shall provide and maintain
insurance against fire, vandalism and other loss, damage, or destruction of the facilities
or structures constructed pursuant to this Agreement, if any. This insurance shall be
issued by a company or companies admitted to transact business in the State of
California. The insurance policy shall contain an endorsement specifying that the policy
will not be cancelled or reduced in coverage without thirty days' prior written notice to
the State Water Board. In the event of any damage to or destruction of the Project or
any larger system of which it is a part, the net proceeds of insurance shall be applied to
the reconstruction, repair or replacement of the damaged or destroyed parts of the
Project or its larger system. The Suppler shall begin such reconstruction, repair, or
replacement as expeditiously as possible and shall pay out of such net proceeds all
costs and expenses in connection with such reconstruction, repair or replacement so
that the same shall be completed and the larger system shall be free of all claims and
liens.
ARTICLE A-29. PROHIBITED USE OF STATE FUNDS FOR SOFTWARE
Supplier 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.
ARTICLE A-30 LABOR COMPLIANCE
Supplier shall either adopt and enforce a Department of Industrial Relations
(DIR)-approved Labor Compliance Program, or contract for such services, from a third
party approved by DIR for work funded under Proposition 50. Supplier shall promptly
furnish any required documentation requested by the State, its agents, or third parties
regarding its compliance and the compliance if its contractors and subcontractors with
these provisions. Supplier's failure to comply with these requirements shall be
considered a substantial breach of this Agreement.
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Funding Agreement No. 50086B02
EXHIBIT B
SPECIAL TERMS AND CONDITIONS
ARTICLE B-1.
1. Supplier shall notify the California Department of Public Health, Proposition 50
Program Office and the California Department of Water Resources when study
project is completed.
2. Notwithstanding any other term or condition of this Agreement, Supplier may be
reimbursed only for such Eligible Project Costs consisting of eligible construction
expenses incurred on or after September 17, 2007, the date of Supplier's Letter of
Commitment, and eligible preliminary expenses incurred after March 5, 2005.
3. Notwithstanding any other term or condition of this Agreement, Supplier may use
only Eligible Project Costs incurred after October 28, 2003 to satisfy Matching
Fund requirements. Funds spent on study and construction costs incurred prior to
the execution of the funding agreement may be counted towards matching funds if
Supplier can demonstrate that all required environmental compliance was
completed and an approved Labor Compliance Plan (LCP) was in place prior to
the start of the study.
4. Supplier shall implement the Department of Industrial Relations (DIR) approved
LCP over the portion of the project funded by the Proposition 50 grant and any
required matching funds, if applicable.
5. If CDPH determines that facilities or components previously constructed are not
eligible for funding, or that environmental compliance or labor compliance was
incomplete, any change orders or costs associated with removing or modifying
those facilities will not be considered eligible expenses.
6. Supplier shall conduct the study in such manner that the objectives and goals as
stated in the submitted technical report and its subsequent revisions shall be
achieved. Any changes or modifications to the approved study proposal must be
submitted to CDPH for review and approval.
7. Supplier shall NOT purvey treated water from this study to consumers for
human consumption prior to obtaining a permit from CDPH San Bernardino
district field office and approval from CDPH Proposition 50 Program.
8. City of Redlands shall submit bench-scale test plans that shall at a minimum
include experimental procedure, data collection and study protocol for any rapid
small scale column tests (RSSCT) conducted during each quarter in quarterly
progress reports.
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Funding Agreement No. 50086B02
9. Supplier shall conduct RSSCT tests so that within one year of execution of a
funding agreement by DWR, all parameters to be used in pilot-scale and
demonstration-scale studies will be established.
10.Supplier shall submit to CDPH a summary of comments received from the
project Technical Advisory Committee members regarding the progress reports
and the draft final report.
11.Supplier shall submit to CDPH and DWR quarterly progress reports and shall
submit a draft final report 6 months prior to Project Completion Date, as specified
in Article A-8 of the funding agreement.
12.Supplier shall submit the final report to CDPH and DWR on or before Project
Completion Date, as specified in Article A-8 of the funding agreement. The final
report must include all relevant materials and methodology, results, innovations,
inventions, conclusions, and recommendations. Where possible, the final report
shall also identify additional efforts that will be needed prior to the application of
the research results.
13.Supplier (for demonstration project) shall submit an operations and
maintenance (O&M) manual as part of the final project deliverables to CDPH and
DWR on or before Project Completion Date, as specified in Article A-8 of the
funding agreement. The O&M manual shall include all pertinent information as
described in Section IV. J of the approved study proposal.
14.Supplier shall submit to CDPH a detailed plan and schedule for public
dissemination of results of the project 60 days prior to Project Completion Date,
as specified in Article A-8 of the funding agreement.
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Funding Agreement No. 50086B02
EXHIBIT C
STATEMENT OF WORK
ARTICLE C-1. PROJECT GOALS AND OBJECTIVES
The City of Redlands (Grantee) goal for this project is to determine whether
tailored activated carbons can effectively remove perchlorate and other contaminant
categories as listed under Chapter 6(b). The measures used to determine if the goals
and objectives are met will be to appraise the bed volumes to breakthrough of these
five priority contaminants, and determine whether these durations reflect technically and
economically effective means of removing these contaminants.
• Objective 1:
Conduct a robust full-scale/demonstration-scale trial to facilitate the widespread
permitting of these technologies.
• Objective 2:
On the pilot-scale level, investigate the effectiveness of these technologies on
the six categories of priority contaminants, including chromium, benzene,
trichloroethylene (TCE), dibromochloropropane (DBCP-a pesticide), and
endocrine disrupting compounds.
• Objective 3:
Rapid Small Scale Column Test (RSSCT) validation and expanding the data
base to a broader range of contaminant concentrations, including reduced sulfur
species. RSSCT tests will be operated to validate the use of RSSCT tests to
simulate field-scale results with these tailored Granular Activated Carbons
(GACs) and to study the effects of competition to facilitate projections on how
well the technology could work at other sites. Enhancement of performance will
also be sought.
ARTICLE C-2 PROJECT DESCRIPTION
The treatment technology that will be tested employs tailored granular activated
carbon to remove both inorganic and organic targeted contaminants. The project will
engage three trains of GAC beds. The first and second trains of GAC beds will be pilot
scale systems (6"diameter, 4' bed depth, —25 pounds each bed). For the first pilot
train, the first two beds in series will contain cationic surfactant-tailored GAC in the top
2/3rds of the bed and conventional carbon in the lower 1/3rd of the bed, making each a
dual-media bed. The first pilot system will also utilize conventional carbon in the third
vessel. The second pilot system will have two dual beds in series; in each of these, the
top 2/3rds will be cationic surfactant-tailored GAC, and the bottom third will be thermally
tailored GAC. These two beds will be chased by a third bed of thermally tailored GAC.
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Funding Agreement No. 50086B02
This will allow these two GAC types to be compared in the pilot tests relative to
removing the primary organic contaminants.
The third train will be either a full-scale system with 20,000 pounds of GAC in
each bed (10' diameter x 8.5'GAC depth) or a demonstration-scale system with 4'
diameter and 8' GAC depth. Either way, this train will consist of two dual beds in series;
and the top 2/3rds will be cationic surfactant-tailored GAC, while the bottom third will be
conventional GAC. If a full-scale system is used, the aim will be to ultimately purvey
this water to Redlands customers for potable water consumption during the course of
this Prop 50 program, although this water can go to non-potable irrigation initially. If a
demonstration-scale system is used, the aim will be to discharge this water to non-
potable irrigation and to the sewer. The decision as to whether to purvey this water to
Redlands customers rests with the California Department of Public Health (CDPH).
For all three trains, flow-rates will provide an 8.5 minute EBCT through each
GAC bed. This flow rate, when applied to the 24 existing GAC beds at Redlands, will
facilitate the 10 MGD capacity that this plant was initially designed for. All three trains
will utilize full-size US mesh #12 x 40 GAC grains. The pilot-scale water will be spiked
with several organic contaminants.
ARTICLE C-3. TASKS
The tasks described below are primary tasks of the study project. For additional
details, refer to the revised technical report dated April 2007 that was submitted to
CDPH for review and approval.
Task 1.
• Conduct about 25-30 RSSCT tests at Redlands Texas St Plant and at Penn State
Laboratory to validate the use of RSSCT tests to simulate field-scale results with
these tailored GACs and to study the effects of competition to facilitate projections
on how well the technology could work at other sites. Enhancement of performance
will also be sought.
Task 2.
• Conduct two pilot studies to evaluate the effectiveness of the cationic surfactant-
tailored GAC in removing perchlorate and the effectiveness of the thermally-tailored
GAC in removing the primary organic contaminants.
Task 3.
• Conduct a demonstration or full scale evaluation of the cationic surfactant-tailored
GAC in removing perchlorate and the primary organic contaminants.
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Funding Agreement No. 50086B02
ARTICLE C-4. POTENTIAL BENEFITS
In remediating the groundwater, several other goals established in Proposition
50 can be met. The first of these is providing a safe source of drinking water. For
example, the groundwater in Redlands, CA contains perchlorate; but aside from
perchlorate, the water meets all drinking water standards. If perchlorate can be
removed from the water in an economical manner, this would create a viable source of
drinking water for the Redlands community. Successful testing of the cationic
surfactant-tailored GAC would allow Redlands to reopen its Texas St. water treatment
facility.
The remediation of groundwater to viable drinking water sources will also ease
the strains created by the ever-growing population of California. These new sources
can supply water to existing homes, businesses, power plants, and agriculture as well
as provide a water source for new construction and development. Without an adequate
water supply, economic growth in an area may be stunted.
Finally, the new available water created by the two tailored GACs can help to
alleviate the reliance on imported water. This issue figures prominently with water
rights regarding the Central California Water Project and Colorado River. Lessening
the reliance on imported water would allow California a greater sense of security with its
water supply.
In addition to the real world benefits that may be realized from this project, the
demonstration-scale, pilot-scale, and RSSCT testing provide an opportunity to advance
fundamental understanding of the science. The first area where a contribution to
science can be made is examining whether RSSCT results can accurately depict
results of larger systems. When designing a small scale column, an assumption on the
diffusion rate of the contaminant must be made.
The diffusion rate is either assumed to be proportional to the GAC grain size or
assumed to be constant. This decision greatly impacts the resulting RSSCT design.
Columns designed with proportional diffusivity will be much larger in size and utilize a
slower empty bed contact time in comparison to a column designed under the constant
diffusivity assumption. The diffusion of perchlorate onto virgin GAC has been shown to
follow proportional diffusivity, but it has not yet been proven that this assumption is valid
when using the cationic surfactant-tailored GAC. Replicating the pilot-scale study
conditions in the laboratory with RSSCT tests designed with both the proportional and
constant diffusivity assumptions will allow us to examine which contaminants follow
proportional diffusivity, which adhere to constant diffusivity, and which (if any) appear to
conform to something in between. The ability of an RSSCT test to accurately depict
full-scale performance would be a very useful economic tool in determining how well a
full-scale system could work at a particular site.
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Funding Agreement No. 50086B02
A second area where a contribution to science can be made is in understanding
the role that sulfur speciation and redox level play in the removal of perchlorate via the
cationic surfactant-tailored GAC. Sulfur aqueous chemistry is complex; and gaining an
understanding into its effects on perchlorate removal may allow us to pretreat source
water with an oxidant such as chlorine or ozone to enhance full-scale removal of
perchlorate.
A third area to study will examine the effects of various concentrations of other
ions on the adsorption of perchlorate. While this technology may prove to work well at
Redlands, it is only one site of hundreds in California that are affected by perchlorate.
By spiking various concentrations of competing ions in RSSCT tests, this will expand
the database and allow projections to be made for other sites.
ARTICLE C-5. DELIVERABLES
The Grantee is responsible for the following deliverables:
• Quarterly reports documenting progress, task completion, and project success;
• Draft Final Report and associated data six months prior to Project Completion
Date;
• Final Report due on or before Project Completion Date that will include an
operations and maintenance manual.
• Provide evidence of dissemination of study results to the public
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