HomeMy WebLinkAboutContracts & Agreements_167-2003_CCv0001.pdf State Water Resources Control Board
Division of Administrative Services
1001 I Street •Sacramento,California 95814•(916)341-5082 •FAX(916)341-5060
Winston H. Hickoz Gray Davi!
Mailing Address: P.O.Box 100•Sacramento,California 95812-0100
Secretary for Governor
Environmental Internet Address: hi ti)zlw‘%W.SANrch*ca.L!m
Protection
The energy challenge facing California is real. Every,Californian needs to take immediate action to reduce energy consumption.
For a list of simple ways you can reduce demand and cut your energy costs,see our website at http://www.swrcb.ca.gov.
AUG 1 1 2003:
City of Redlands
Attn: Karl N. Haws, Mayor
35 Cajon Street, Ste. 15A
Redlands, CA 92373
Subject: Agreement Number: 01-821-550-0
This Agreement cannot be considered binding on either party until approved by appropriate authorized state agencies. No
services should be provided prior to approval, as the State is not obligated to make any payments on any Agreement prior
to final approval. Expeditious handling of this Agreement is appreciated. For inquiries regarding this Agreement, please
call Lori Casias (916) 341-5650, or E-mail address: casiasl@swrcb.ca.gov
Complete the following item(s) and return to the P. 0. Box address stated above, return label attached.
F Standard Agreement (STD 213) with attached exhibits. Sign the first page of the standard agreement
package (STD 213) and the additional single STD 213 enclosed, and return for further processing.
IXContractor Certification Clauses (CCC). The CCC package contains clauses and conditions that may apply to your
Agreement and to persons doing business with the State of California. It is available on the Internet site referenced
in paragraph one above. Please sign and return the first page of the current CCC. Failure to do so will prohibit the
State of California from doing business with you. A hard copy is provided for your use.
If you are unable to return this package within 30 days, please contact this office at the phone number indicated in
the instruction paragraph above. Thank you for your attention to this request.
Contracts Section
Division of Administrative Services
Enclosures
California Environmental Protection Agency
Porrelpii PnnPr
c. Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be
qualified to do business in California.Agencies will determine whether a corporation is in good standing by calling the Office of the
Secretary of State.
O. RESOLUTION:A county, city,district, or other local public body must provide the State with a copy of a resolution, order,
motion,or ordinance of the local governing body which by law has authority to enter into an agreement, authorizing execution of
the agreement
7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor shall not be:(1)in violation of any order or
resolution not subjecto review promulgated by the State Air Resources Board or an air pollution controldistrict;(2)subject to
cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge
requirements or discharge prohibitions;or(3)finally determined to be in violation of provisions of federal law relating to air or
water pollution.
8. PAYEE DATA RECORD FORM STD. 204:This form must be completed by all contractors thatare not another state agency or
other government entity.
STATE OF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 09/01)
AGREEMENT NUMBER: 01-821-550-0
ISA NUMBER: C-06-4800-110
1. This Agreement is entered into between the State Agency and the Contractor named below:
STATE AGENCY'S NAME
State Water Resources Control Board (Hereafter referred to as "SWRCB")
CONTRACTOR'S NAME
City of Redlands (Hereafter referred to as "Agency" or "Contractor")
The term of this April 19, 2002 through November 30, 2024
Agreement is:
3. The maximum amount $9.000.000
of this Agreement is: Nine million dollars
4. The parties aaree to comply with the terms and conditions of the following exhibits which are by this reference made a
part of the Agreement.
Exhibit A Scope of Work 8 Pape(s)
Exhibit B Budget Detail and Payment Provisions 5 Page(s)
Exhibit C General Terms and Conditions (GTC 201) 3 Page(s)
Exhibit D Special Conditions 1 Page(s)
Exhibit E Approval to Award Letter 4 Page(s)
Exhibit F Applicable Effluent Limitations and Approved Plans and Specifications 1 Page(s)
Exhibit G Final Plans and Specifications Approval Letter 4 Page(s)
Exhibit H Facilities Plan Approval Letters 13 Page(s)
Exhibit I SRF Installment Sales Agreement Payment Schedule 2 Page(s)
Exhibit J Schedule of System Obligations 2 Page(s)
Exhibit K Tax Covenants 5 Page(s)
Exhibit L Agency Reimbursement Resolution 1 Page(s)
Exhibit M SWRCB Special Terms and Conditions 5 Page(s)
IN WITNESS WHEREOF,this Agreement has been executed by the parties hereto.
CONTRACTOR California Department of General
Services Use Only 1
CONTRACTOR'S NAME(if other than an individual,state whether a corporation,partnership,etc.)
City of Redlands
BY(Authorized Signature) DATE SIGNED(Do not type)
PRINTED NAME NAME AND TITLE OF PERSON SIGNING
k—ef
Karl N. Haws, Mayor Attest:
ADDRESS Lore Poyz*<yity Clerk
35 Cajon Street, Ste 15A, Redlands, CA 92373 'r
STATE OF CALIFORNIA
AGENCY NAME
State Water Resources Control Board
BY(Authorized Signature) DATE SIGNED(Do not type)
PRINTED NAME AND TITLE OF PERSON SIGNING 0 Exempt per:
Bill Brown, Chief, Division of Administrative Services
ADDRESS
1001 I Street, Sacramento, CA 95814
CCC%01
CERTIFICATION
I, the offic�| named Ue�w. CERTIFY UNDER PENALTYOFPERJURf (hat | amdu|yau/hohzedk/�go||yb�dbhep�upo��c
Contrsuuz to the clause(s) listed below. This certification is made under the laws of the State of California.
_
Contractor/Bidder Fir (Printed) Federal ID Number
City of Redlands ! 95-6000766
By(Authorized Signature) Attest:
(
Printed Name and Title of PersoSigning
Karl N. Haws, Mayor Lorrie Poyzez, City Clerk
/ .
Date Executed Executed in the County of
September 2, 2003 ^ San Bernardino [
CERTIFICATION CLAUSES
1. GTATEMENTOFOOyWpL�NCE: Cono�c�rhas, unless examp�d. complied whh tAonongmcnnmnann" pmgro,n requirements. (GC 12SSO (e'f)and CCR, Title 2, Section 8103)(Not applicable to public entities.)
2. DRUG-FREE WORKPLACE REQUIREMENTSwill comply=ith the requirements of the Drug-Free Workplace Act
of 1990 and will provide a drug-fre 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:
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; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug-free workplace policy statement;and,
2) agree to abide by the terms of the company's statement as a condition of employment on the Agreement.
Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the
Agreement or both and Contractor may be ineligible for award of any future State agreements if the department determines that
any ofthe following has occurred: (1)the Contractor has made false cerhfi �
cation, or violated the certification by failing to carry out
the requirements as noted above. (GC 8350 et seq.)
3. NATIONAL LABOR RELATIONS BOARD CERT|F|CA�ON: Contra�orce��esthat no morethan one 1)final unappealable
finding ofcontempt cfcourt byaFederal court has been issued against Contractor within the immediately preceding two-year
o/Cun�rac�o/ataUueUncomp|ywi�hanu�ero�aFedena| cou�n�ichondens [onos�or1ocomp|yvi(hunn«1er
period because .
of the National Labor Relations Board. (PCC 10296) (Not applicable to public entities.)
4 |/m|nm 111:2n4m|7|wn Cnn/rprm,hprphvcnrtiaqCthat nnrpm/eptmrnp/mh//rsnnnent r,navn"nn+//nrittArthis anrP=mpn/ will
seek reimbursement for costs incurred to assist, promote or deter union organizing.
DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California.
1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions regarding current or former state
employees. If Contractor has any questions on the status of any person rendering services or involved with the Agreement,the
awarding agency must be contacted immediately for clarification.
Current State Employees (PCC 10410):
1), No officer or employee shall engage in any employment,activity or enterprise from which the officer or employee receives
compensation or has a financial interest and which is sponsored or funded by any state agency, unless the employment, activity
or enterprise is required as a condition of regular state employment.
2). No officer or employee shall contract on his or her own behalf as an independent contractor with any state agency to provide
goods or services.
Former State Employees(PCC 10411):
1). For the two-year period from the date he or she left state employment, no former state officer or employee may enter into a
contract in which he or she engaged in any of the negotiations,transactions, planning,arrangements or any part of the decision-
mak|nQpmcemmm|avanttotheoontnacLwhUeomp|nyodinanyuapaoitybyanyatateoqency.
2). For the twelve-month period from the date he or she left state employment, no former state officer or employee may enter into
a contract with any state agency if he or she was employed by that state agency in a policy-making position in the same general
subject area as the proposed contract within the 12-month period prior to his or her leaving state service.
If Contractor violates any provisions of above paragraphs,such action by Contractor shall render this Agreement void. (PCC
10420)
Members of boards and commissions are exempt from this section if they do not receive payment other than payment of each
meeting of the board or commission, payment for preparatory time and payment for per diem. (PCC 10430(e))
2. LABOR CODE/VVORKERS'COMPENSATION: Contractor needs to be aware of the provisions which require every employer to
be insured againsliability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and
Contractor affirms to comply with such provisions before commencing the performance of the work of this Agreement. (Labor
Code Section 3700)
3,AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it complies with the Americans with Disabilities Act
(ADA)of 1990,which prohibits discrimination on the basis of disability,as well as all applicable regulations and guidelines issued
pursuant to the ADA. (42 U.S.C. 12101 et seq.)
4. CONTRACTOR NAME CHANGE:An amendment is required to change the Contractors name as listed on this Agreement.
Upon receipt of legal documentation of the name change the State will process the amendment. Payment of invoices presented
with a new name cannot be paid prior to approval of said amendment.
5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting agencies will be verifying that the contractor
is currently qualified to do business in California in order to ensure that all obligations due to the state are fulfilled.
b."Doing business is defined in R&TC Section 23101 as actively engaging in any transaction for the purpose of financial or
pecuniary gain or profit.Although there are some statutory exceptions to taxation, rarely will a corporate contractor performing
within the state not be subject to the franchise tax.
c, Both domesticand foreign corporations(thoof California)must be in good standing in order to be
qualified to do business in California.Agencies will determine whether a corporation is in good standing by calling the Office of the
Secretary of State
6. RESOLUTION:A county, city.dinthct. orcuher|nca| pub|icbodymuotpmvidetheStetawithaonpyofav000|ution. ondor.
motion, or ordinance of the local governing body which by law has authority to enter into an agreement,authorizing execution of
the agreement.
7.AIR OR WATER POLLUTION VIOLATION: Under the State laws,the Contractor shall not be:(1)in violation of any order or
resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2)subject to
cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge
requirements or discharge prohibitions;or(3)finally determined to be in violation of provisions of federal law relating to air or
water pollution.
8. PAYEE DATA RECORD FORM STD.204:This form must be completed by all contractors thaare not another state agency or
other government entity.
City of Red lands
Agreement No.: 01'821'550'0
ISA No.: C'O0'480O'110
Page 1 of 8
EXHIBIT A— SCOPE OF WORK
SECTION 1. PROJECT DESCRIPTION.
The Pjeot. uommon(yknownesthoCitynfRed|andsQeneraUycnnsistsofdheconmbootionofodvancad
wastewater treatment facilities at the existing wastewater treatment p/ont, as more particularly described
in the financial assistance application of the Agency and the approved plans and specifications (see
Exhibits F and G) for the Project.
SECTION 2. OFFICIAL REPRESENTATIVES.
(1) The SVVRCB Assistance Coordinator shall be the Division Chief of the Division of Financial
Assistance.
(2) The SVVRCB Assistance Coordinator shall be the SVVRCB's representative for administration of
the Agreement and shall have authority to make determinations and findings with respect to any
controversy arising under or in connection with interpretation of this Agreement.
(3) The Agency's Authorized Representative shall be the Utilities Director, or his/her designee, who
shall administer the Agreement and who shall have full authority to act on behalf of the Agency,
including authority to execute disbursement requests. All communications given to the Agency
representative shall be as binding as if given to the Agency.
(4) Either party may change its official representative upon written notice to the other party.
SECTION 3. DEFINITIONS.
"Additional Payments" means the Additional Payments described in Exhibit B Section 2.3(C)of this
Agreement.
"Allowance"means an amount based on a percentage of the accepted bid for an eligible projecttohn/p
defray the planning, design, and construction engineering and administration costs of the Project.
"Authorized Representative" means the Mayor of a City, the Chairperson of the County Board of
Supervisors, the Chairperson of the Board of Directors of the Agency, or another duly appointed
representative. For all authorized representatives, a certified original copy of the authorizing resolution that
designates the authorized representative, bytitle, must accompany any contract, the finotpayment
request, and any other documents or requests required or allowed under this Agreement.
"Bank" means the California Infrastructure and Economic Development Bank.
"Bonds" means any series of bonds issued by the Bank all or a portion of the proceeds of which may be
applied to fund the Project in whole or in part or that are secured in whole or in part by Installment
Payments paid hereunder.
"Code" means the Internal Revenue Code of 1986, as amended, and any successor provisions and the
regulations of the U.S. Department of the Treasury promulgated thereunder.
"Completion of Construction" means the date, as determined by the Division after consultation with the
AOency, that the work of building and erection of the Project is substantially complete.
"CWSRF"means Clean Water State Revolving Fund.
� . ^
City of Redlands
Agreement No.: 01'821'550-O
ISA No.: C'06-4800-110
Page 2 of 8
EXHIBIT A—SCOPE OF WORK
"Division"means the Division of Financial Assistance of the SWRCB, or any other segment of the
SWRCB authorized to administer the CWSRF.
"Fiscal Year" means the period of twelve months terminating on June 30 of any year, or any other annual
period hereafter selected and designated by the Agency as its Fiscal Year in accordance with applicable
law.
"Force Account" means the use of the Agency's own employees or equipment for construction of the
Project.
"Initiation of Construction" means the date that notice to proceed with work is issued for the Project, or, if
notice to proceed is not required, the date of commencement of building and erection of the Project.
"Installment Payments" means Installment Payments due and payable by the Agency to the SWRCB
under this Agreement to repay the Project Costs, the amounts of which are set forth as Exhibit I hereto.
"Net Revenues"means, for any Fiscal Year, so long as there may be outstanding System Obligations, as
such term is defined under the authorizing instruments for such System C)b(igmtimnm, and thereafter all
Revenues received by the Agency less the Operations and Maintenance Costs for such Fiscal Year.
"Obligation" means the obligation owed by the Agency to make Installment Payments and Additional
Payments as provided herein, as evidenced by the execution of this Agreement, to be used to fund the
Project as specified in the Project Description attached hereto as Exhibits F and G.
"Operations and Maintenance Costs" means, so long as outstanding System Obligations are outstanding,
the definition of such term as defined therein, and thereafter, the reasonable and necessary costs paid or
incurred by the Agency for maintaining and operating the System, determined in accordance with
generally accepted accounting principles, including all reasonable expenses of management and repair
and all other expenses necessary to maintain and preserve the System in good repair and working order,
and including all reasonable and necessary administrative costs of the Agency that are charged directly or
apportioned to the operation of the System, such as salaries and wages of employees, overhead, taxes (if
any), the cost of permits, licenses and charges to operate the System and insurance premiums; but
excluding, in all cases depreciation, replacement and obsolescence charges or reserves therefor and
amortization of intangibles.
"Pledged Revenues" means and include user fees and charges, or other sources of income which are
consistent with federal requirements.
"Policy" means the SWRCB's "Policy for Implementing the State Revolving Fund for Construction of
Wastewater Treatment Facilities," adopted on February 16, 1995as amended.
"Project" means the Projectject as described in Exhibit A, Section 1 and Exhibits F and G.
"Project Completion" means the date, as determined by the Division after consultation with the Agency,
that operation of the P 'ectimindiatedorisoepab|aofbeinginitietad. whichevarcomnmmfinuLThisdata
shall be synonymous with the date specified in the"Initiation of Operation"form submitted as part of the
ATA package.
"Project Costs" means the incurred costs of the Agency which are eligible for financial assistance from the
CWSRF under the Statute, which are allowable costs as defined under the Policy and which are
reasonable, necessary and allocable by the Agency to the Prject under generally accepted accounting
. "
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-OG'48OO'11O
Page 3 of 8
EXHIBIT /\-- SCOPE OFWORK
"Project Funds" means funds disbursed by the SWRCB to the Agency for purposes of this Agreement.
''Revenue Program" means a system of charges, fees, or other means of income production adopted by
the Agency which provides for recovery of appropriate capital costs of the Project, genmnab»madoquate
income to reasonably assure repayment of the Obligation under this Agreement, generates adequate
income to provide for reasonable operation and maintenance of the Project, and provides adequate
income for reasonable future expansion and improvement of the Project.
"Revenues" means, for each Fiscal Year, all gross income and revenue received or receivable by the
Agency from the ownership or operation of the System, determined in accordance with generally accepted
accounting principles, including all rates, fees and charges (including connection fees and charges) as
received by the Agency for the services of the System, and all other income and revenue howsoever
derived by the Agency from the ownership or operation of the System or arising from the System, and also
including all income from the deposit or investment of any money in the Enterprise Fund or any rate
stabilization fund, and any refundable deposits made to establish credit, and advances or contributions in
aid of construction.
"Stote" means State of California.
^Systenn^ means all wastewater collection, transport, tretment, storage and disposal facilities, including
land and easements thereof, owned by the Agency, incAing the Project, and all other properties,
structureoorxvorkohareafteraoquiredandoonstructedbythaAgencyanddetenninmdhmbmapartofthe
System, together with all additions, betterments, extens ns or improvements to such facilities, properties,
structures or works or any part thereof hereafter accuire and constructed.
"System Obligations" means all senior, parity and suborr, late obligations of the Agency payable from
Revenues as identified as of the date of this Agreement Exhibit J and such additional obligations as
may hereafter be issued in accordance with the provisions of such obligations.
SECTION 4. GENERAL AGENCY COMMITMENTS.
The Agency accepts and agrees to comply with all tonns, pnovisinns, conditions, and commitments of this
Agreement, including all incorporated documents, and to fulfill all assurances, declarations,
representations, and commitments made by the Agency in its application, accompanyingdoournents. ond
communications filed in support of its request for financial assistance.
SECTION 5. COMPLETION OF PROJECT.
The Agency agrees to expeditiously proceed with and complete construction of the Project in substantial
accordance with P 'eotp|onsandspacifioabonsappnovedbythoSVVRCB.
SECTION 6. PROJECT CERTIFICATION.
One year after initiation of operations, the Agency shall certify to the SW RCB whether or not the Project,
as of that date, meets applicable design specifications and effluent limitations. If the Agency cannot certify
that the Project meets such specifications and limitations at that time. the Agency will, at its own expense
and in a timely manner, expeditiously make all needed corrections and perform all additional work
necessary to allow affirmative certification for the Project.
Failure to submit an affirmative certification within 15 months, or a corrective action report that meets the
above requirements and is satisfactory to the Division within 15 months of the Project Completion date will
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-06-4800-110
Page 4 of 8
EXHIBIT A—SCOPE OF WORK
result in an interest penalty of the lesser of twelve percent (12%) per annum or the highest rate permitted
under law being assessed on the outstanding balance due.
SECTION 7. FEDERAL OR STATE ASSISTANCE.
If federal or state funding for Project Costs is made available to the Agency from sources other than the
CWSRF, the Agency may retain such funding up to an amount which equals the Agency's local share of
Project Costs. To the extent allowed by requirements of other funding sources, any funding received in
excess of the Agency's local share, not to exceed the total amount of the CWSRF financing assistance,
shall be remitted to the SWRCB to be applied to Installment Payments due hereunder.
SECTION 8. REVENUE PROGRAM.
The Agency agrees to prepare and provide an acceptable final Revenue Program to the Division at the
time of ninety percent(90%) disbursement of Project Costs. Further disbursements may be withheld until
an acceptable final Revenue Program is submitted. The Agency further agrees to periodically review and
modify the Revenue Program as necessary to assure reasonable adequacy of the Revenue Program. The
final Revenue Program and all modifications thereof shall be consistent with applicable guidelines and
shall be to the reasonable satisfaction of the Division. The Division may review the Agency's records to
assure compliance with the approved Revenue Program at any time during the useful life of the Project.
SECTION 9. USER CHARGE SYSTEM.
The Agency shall adopt and maintain in effect a user charge system which at all times complies with the
requirements of Section 204(b)(1) of the federal Clean Water Act and applicable federal and state rules,
regulations and guidelines.
SECTION 10. OPERATION AND MAINTENANCE; INSURANCE.
The Agency agrees to properly staff, operate and maintain all portions of the Project during its useful life in
accordance with all applicable state and federal laws, rules and regulations.
The Agency will procure and maintain or cause to be maintained insurance on the System 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 System) as are usually covered in connection with
systems similar to the System. Such insurance may be maintained by the maintenance of a self-insurance
plan so long as any such plan provides for (i) the establishment by the Agency of a separate segregated
self-insurance fund funded in an amount determined (initially and on at least an annual basis) by an
independent insurance consultant experienced in the field of risk management employing accepted
actuarial techniques and (ii) the establishment and maintenance of a claims processing and risk
management program.
In the event of any damage to or destruction of the System 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 System. The Agency 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
System shall be free and clear of all claims and liens. If such net proceeds are insufficient to enable the
Agency to pay all remaining unpaid principal portions of the Installment Payments, the Agency shall
provide additional funds to restore or replace the damaged portions of the System.
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C'06-4800'110
Page 5 of 8
EXHIBIT A— SCOPE OF WORK
SECTION 11. USEFUL LIFE OF PROJECT.
For purposes of this Agreement, the parties agree that the useful life of the Project is at least 20 years
from and after Project Completion.
SECTION 12. AWARD OF CONSTRUCTION CONTRACTS; NOTIFICATION OF AWARD AND
INITIATION OF CONSTRUCTION.
(A) The Agency agrees to award the prime construction contract within 180 days (six months) after
issuance of the Agreement. An extension may be granted by the Division.
(B) The Agency agrees to promptly notify the Division in writing both of the award of the prime
construction contract for the Prject and of Initiation of Construction of the Pject. The Agency
has established November 30, 2004 as the Completion of Construction date. The Agency agrees
to make all reasonable efforts to complete construction in substantial conformance with the terms
of the contract by this date. Such date shall be binding upon the Agency unless modified in
writing by the Division upon a showing of good cause by the Agency. Extension of the Completion
of Construction date by the Division shall not be unreasonably withheld.
SECTION 13. CONSTRUCTION ACTIVITIES; NOTIFICATIONS; PROTECTION OF
ARCHEOLOGICAL AND HISTORICAL RESOURCES.
(A) The Agency agrees to promptly notify the Division in writing of:
(1) Any substantial change in scope of the Pject. The Agency agrees that no substantial
change in the scope of the Project will be undertaken until written notice of the proposed
change has been provided to the Division and the Division has given written approval for
such change;
(2) Cessation of all major construction work on the Project where such cessation of work is
expected to or does extend for a period of 30 days or more;
(3) Any circumstance, combination of circumstances, or condition, which is expected to or
does delay Completion of Construction for a period of 90 days or more beyond the
estimated date of Completion of Construction previously provided to the Division;
(4) Discovery of any potential archeological or historical resource. Should a potential
archeological or historical resource be discovered during construction of the Project, the
Agency agrees that all work in the area of the find will cease until a qualified archeologist
has evaluated the situation and made recommendations regarding preservation of the
resource, and the Division has determined what actions should be taken to protect and
preserve the resource. The Agency agrees to implement appropriate actions as directed
by the Division; and
(5) Completion of Construction of the Project. and actual Project Completion.
SECTION 14. PROJECT ACCESS.
The Agency agrees to insure that the SWRCB, or any authorized representative thereof, will have suitable
access to the Project site at all reasonable times during Project construction and thereafter for the term of
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C'OO'48OO'11O
Page 6 of 8
EXHIBIT A—SCOPE OF WORK
SECTION 15. PROJECT COMPLETION; INITIATION OF OPERATIONS.
Upon Completion of Construction of the Pject, the Agency agrees to expeditiously initiate Prject
operations. The Agency has established September 30, 2004 as the estimated Pject Completion date.
The Agency agrees to make all reasonable efforts to meet the date so established. Such date shall be
binding upon the Agency unless modified in writing by the Division upon a showing of good cause by the
Agency. Extension of the Project Completion date by the Division shall not be unreasonably withheld.
SECTION 16. WASTEWATER CAPITAL RESERVE FUND.
The Agency agrees to establish and maintain a Wastewater Capital Reserve Fund (WCRF)for expansion,
major repair, or replacement of the wastewater facilities and to maintain the WCRF for the term of the
Agreement. The WCRF shall be maintained in compliance with the "Policy for Implementing The State
Revolving Fund for Construction of Wastewater Treatment Facilities" in effect at the time the Agreement is
signed by the Authorized Representative of the Agency. The Agency agrees to submit a report on WCRF
activities and status five (5) years after the date of the final revenue program approval by the Division.
Updated WCRF reports will be submitted every five(5)years thereafter until all Installment Payments and
Additional Payments hereunder have been fully discharged. Thereafter, the WCRF will no longer be
subject to the requirements of this Agreement or the above referenced policy. Certification by legal
counsel of unused bonding capability for the wastewater enterprise may be used to offset required cash
deposits to the WCRF.
SECTION 17. CONTINUOUS USE OF PROJECT; LEASE OR DISPOSAL OF PROJECT.
The Agency agrees that, except as provided in the Agreement, it will not abandon, substantially
discontinue use of, lease, or dispose of the Project or any significant part or portion thereof 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 or any
portion of all remaining funds covered by this Agreement together with accrued interest and any penalty
assessments which may be due.
SECTION 18. REPORTS.
The Agency agrees to expeditiously provide, during construction of the Prject and thereafter during the
useful life of the Prjeot. muchrmports. deta. andinfnrmationasmaybereaaonab|yrequiradbythe
Division, including but not limited to material necessary or appropriate for evaluation of the CWSRF
Program or to fulfill any reporting requirements of the federal government.
SECTION 19. RECORDS.
(A) Without limitation of the requirement to maintain Project accounts in accordance with generally
accepted accounting principles the Agency agrees to:
(1) Establish an official file for the Project which shall adequately document all significant
actions relative to the Prject;
(2) Establish separate accounts which will adequately and accurately depict all amounts
received and expended on the Prject, including all assistance funds received under this
^ .
City of Redlands
Agreement No.: 01'821'550'0
ISA No.: C'06-4800'110
Page 7 of 8
EXHIBIT A— SCOPE OF WORK
(3) Establish separate accounts which will adequately depict all income received which is
attributable to the Pject, specifically including any income attributable to assistance
funds disbursed under this Agreement;
(4) Establish an accounting system which will accurately depict final totacosts of the Project,
including both direct and indirect costs;
(5) 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
(6) If Force Account is used by the Agency for any phase of the Project, other than for
planning, design and construction engineering, and administration provided for by
allowance, accounts will be established which reasonably document all employee hours
charged to the Project and the associated tasks performed by each employee. Indirect
Force Account costs may be paid with prior written approval by the Division of the
Agency's indirect cost proposal.
(B) The Agency shall be required to maintain books, records, and other material relative to the Project
in accordance with generally accepted accounting standards. The Agency shall also be required
to retain such books, records, and other material for each subcontractor who performed work on
this project for a minimum of thirty-six years after Project completion. The AoanoyohaUrequire
that such books, reoords, and other material shall be subject at all reasonable
- times to inspection,
copying, and audit by the SWRCB and by state auditors or any Project Representatives thereof.
� ^ ~
(C) The Agency shall retain its Project records for a minimum of thirty-six years after Project
completion and for such longer period as may be required for the State to fulfill federal reporting
requirements under federal tax statues and regulations. All Agency records relative to the Project
shall be subject at all reasonable times to inspection, copying, and audit by the SWRCB and state
auditors or any Project Representative thereof.
SECTION 20. FINAL PROJECT REPORTS; AUDIT.
(A) Within 90 days after Project Completion, the Agency agrees to submit to the Division a final
Project summary report which briefly describes the Project as completed, its features, estimated
capacity, and apparent treatment capability. The report shall note any unusual operational
problems that have been encountered and shall indicate whether the Agency expects to be able to
certify that the Project meets applicable design specifications and effluent limitations one year
after Prject Completion.
(B) Within 120 days after Project Comp|edon, the Agency agrees to provide to the Division a final cost
summary report on the Project. The summary shall include at a minimum, a statement of:
(1) Total Project Costs;
(2) Total Project Costs which are eligible for financing assistance under this Agreement;
(3) The total amount of assistance funds received;
(4) The amount of interest earned, if any, on assistance funds before disbursement on
account of incurred Project costs If no interest has been oorned, this fact shall be
expressly stated.
City of Redlands
Agreement No.: 01'821'550'0
ISA No.: C'06'4800'110
Page 8 of 8
EXHIBIT A— SCOPE OF WORK
(5) The repo� shaUbeaccompanied bysuch o�m,financial infonnadonmenmaybe
reasonably required by the Division to verify Agency entitlement to financial assistance, to
assure program integrity of the CWSRF Program, and to comply with any federal
requirements. The report shall be certified as correct by a duly Authorized Representative
of the Agency.
(C) The Division, at its option, may call for an audit of financial information relative to the Project,
where the Division determines that an audit is desirable to assure program integrity or where such
an audit becomes necessary because of federal requirements. Where such an audit is called for,
the audit shall be performed by a certified public accountant independent of the Agency and at the
cost of the Agency. The audit shall be in the form required by the Division.
(D) Audit disallowances will be returned back to the SWRCB.
SECTION 21. NO OBLIGATION OF THE STATE.
Any obligation of the SWRCB 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 in the CWSRF made available pursuant to
this Agreement.
. `
City of Redlands
Agreement No.: 01-821-S5U'O
ISA No.: C-UG'48UO'11O
Page 1 of 5
EXHIBIT B — BUDGET DETAIL AND PAYMENT PROVISIONS
SECTION 1. ESTIMATED COST OF PROJECT.
The estimated reasonable cost of the total Pjectatthetimenf3VVRCBAppnova[ hlcJudingasoociated
planning and design costs, is twenty two million one hundred ninety five thousand four hundred forty
seven dollars ($22.1S5.447).
SECTION 2. ASSISTANCE AMOUNT AND FINANCING PROVISIONS.
Section 2.1. Project Funds; Repayment from Installment Payments.
Subject to the conditions and in accordance with the terms of this Agreement, the
SWRCB hereby agrees to provide the Pject Funds and the Agency hereby agrees to
accept the Project Funds in the maximum principal component, of nine million dollars
($9,000,000) and to repay the Project Funds in Installment Payments at an interest rate of
two and one half percent (2.5%) per annum as set forth in Exhibits B and I attached
hereto. The Agency agrees that it shall not be entitled to interest earned on undisbursed
project funds. Upon execution of this Agreement, the SWRCB shall encumber an amount
equal to the Obligation. The Agency hereby agrees to pay Installment Payments solely
from Net Revenues and/or other amounts legally available to the Agency. Interest on any
funds disbursed to the Agency shall begin to accrue as of the date of each disbursement.
This rate is based on the sale of State General Obligation Bonds held on April 24, 2003,
and is set when the Agreement is certified to the Agency.
Section 2.2. Purchase and Sale of Pject
The Agency hereby sells to the SWRCB and the SWRCB hereby purchases from the
Agency the Pject. Simultaneously therewiththe Agency hereby purchases from the
SWRCB, and the SWRCB hereby sells to the Agency, the Prject in accordance with the
provisions of this Agreement. All right, title and interest in the Project shall immediately
vest in the Agency on the date of execution and delivery of this Agreement without further
action on the part of the Agency or the SWRCB.
Section 2.3. Amounts Payable by the Agency.
(A) Installment Payments. Repayment of the Project Funds, together with all interest accruing
thereon, shall be repaid in annual installments commencing on the date that is one year
after Completion of Construction, and shall be fully amortized not later than 20 years after
Completion of Construction.
The repayment amount is based on a standard fully amortized assistance amount with
equal annual repayments. The remaining balance is the previous ba|ance, plus the
dksbunsemenbs, plus the accrued interest on both, less the repayment. Repayment
calculations will be made beainning one year after Completion of Construction and shall
be fully amortized not later than 20 years after Completion of Construction. Exhibit I is a
SRF Installment Sales Agreement Payment Schedule based on the provisions of this
article and an estimated disbursement schedule. The actual repayments will be based on
actual disbursements.
Upon Completion of Construction and submission of necessary reports, the Division will
prepare an appropriate SRF Installment Sales Agreement Payment Schedule and supply
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-06-4800-110
Page 2 of 5
EXHIBIT B — BUDGET DETAIL AND PAYMENT PROVISIONS
the same to the Agency. The SRF Installment Sales Agreement Payment Schedule may
be amended as necessary to accurately reflect amounts due under this contract. Any
amended SRF Installment Sales Agreement Payment Schedule which is necessary will
be prepared by the Division and furnished to the Agency.
The Agency agrees to make each installment payment on or before the due date therefor.
A ten-day grace period will be allowed. A penalty in the amount of one-tenth of one
percent(0.1%) of the amount due will be due for each day of nonpayment. For purposes
of penalty assessment, repayment will be deemed to have been made if repayment is
deposited in the U.S. Mail within the grace period with postage prepaid and properly
addressed. Any penalties assessed will not be added to the assistance amount balance,
but will be treated as a separate account and obligation of the Agency. The interest
penalty will be assessed from the repayment due date.
The Agency as a whole is obligated to make all payments required by this contract to the
SWRCB, notwithstanding any individual default by its constituents or others in the
payment to the Agency of fees, charges, taxes, assessments, tolls or other charges
("Charges") levied or imposed by the Agency. The Agency shall provide for the punctual
payment to the SWRCB of all amounts which become due under this contract and which
are received from constituents or others in the payment to the Agency. In the event of
failure, neglect or refusal of any officer of the Agency to levy or cause to be levied any
Charge to provide payment by the Agency under this contract, to enforce or to collect
such Charge, or to pay over to the SWRCB any money collected on account of such
Charge necessary to satisfy any amount due under this contract, the SWRCB may take
such action in a court of competent jurisdiction as it deems necessary to compel the
performance of all duties relating to the imposition or levying and collection of any of such
Charges and the payment of the money collected therefrom to the SWRCB. Action taken
pursuant hereto shall not deprive the SWRCB of, or limit the application of, any other
remedy provided by law or by this contract.
Attached as Exhibit I is a SRF Installment Sales Agreement Payment Schedule based on
the provisions of this section and an estimated disbursement schedule. SRF Installment
Sales Agreement Payment Schedule will be revised based on actual disbursements
following Completion of Construction.
Each Installment Payment shall be paid by check and in lawful money of the United
States of America,
(B) Project Costs. The Agency agrees to pay any and all costs connected with the Project
including, without limitation, any and all Project Costs. If the Project Funds are not
sufficient to pay the Project Costs in full, the Agency shall 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 SWRCB.
(C) Additional Payments. In addition to the Installment Payments required to be made by the
Agency, the Agency shall also pay to the SWRCB the reasonable extraordinary fees and
expenses of the SWRCB, and of any assignee of the SWRCB's right, title and interest in
and to this Agreement, in connection with this Agreement, including all expenses and fees
of accountants, trustees, attorneys, litigation costs, insurance premiums and all other
extraordinary costs reasonably incurred by the SWRCB or assignee of the SWRCB.
City of Redlands
Agreement No.: 01-821-550-0
ISA No,: C'06-4800'110
Page 3 of 5
EXHIBIT B — BUDGET DETAIL AND PAYMENT PROVISIONS
Additional Payments shall be billed to the Agency by the SWRCB from time to time,
together with a statement executed by a duly authorized representative of the SVVRCB,
stating that the amounts billed pursuant to this section have been incurred by the SVVRCB
or its assignee for one or more of the above items and a copy of the invoice or statement
for the amount so incurred or paid, Amounts so billed shall be paid by the Agency within
thirty (30) days after receipt of the bill by the Agency.
(D) The Agency may without penalty prepay all or any portion of the outstanding principal
amount of the Obligation provided that the Agency shall also pay at the time of such
prepayment all accrued interest on the principal amount prepaid through the date of
prepayment.
Section 2.4. Obligation Absolute. The obligation of the Agency to make the Installment Payments and
other payments required to be made by it under this Agreement, solely from Net
Revenues, is absolute and unconditional, and until such time as the Installment Payments
and Additional Payments have been paid in full, the Agency shall not discontinue or
suspend any Installment Payments or other payments required to be made by it
hereunder when due, whether or not the System or any part thereof is operating or
operable or has been comp|eted, or its use is uuspanded, interfered with, reduced or
curtailed or terminated in whole or in part, and such Installment Payments and other
payments shall not be subject to reduction whether by offset or otherwise and shall not be
conditional upon the performance or nonperformance by any party of any agreement for
any cause whatsoever.
Section 2.5. Disbursement of Pjent Funds; Availability of Funds.
(A) Except as may be otherwise provided in this Agneement, disbursement of Pject Funds
will be made as follows:
(1) Upon execution and delivery of this Agreement, the Agency may request
immediate disbursement of any incurred planning and design allowance as
specified in Exhibit A from the Project Funds through submission to the SWRCB
of the Disbursement Request Form 260, or any amendment thmrabo, duly
completed and executed.
(2) Additional Project Funds will be promptly disbursed to the Agency upon receipt of
Disbursement Request Form 260. or any amendment thereto, duly completed
and executed by the Agency for incurred costs consistent with this Exhibit.
Disbursement shall not be made more frequently than once a month. The Agency
agrees that it will not request disbursement for any Pject Cost until such cost
has been incurred and is currently due and payable by the Agmnoy, although the
actual payment of such cost by the Agency is not required as a condition of
disbursement request. Notwithstanding any other provision of this Aoneement, no
disbursement shall be required at any time or in any manner which is in violation
of or in conflict with federal or state |avvs, rules, or regulations.
(B) The S\NRCB'a obligation to disburse Project Funds is contingent upon the availability of
sufficient funds to permit the disbursements provided for herein, If sufficient funds are not
available for any naaaon, including but not limited to failure of the federal or State
^ .
City of Redlands
Agreement Na: 01-821-550-0
ISA No.: C'OG-48OO'11O
Page 4 of 5
EXHIBIT B — BUDGET DETAIL AND PAYMENT PROVISIONS
government to appropriate funds necessary for disbursement of Pject Funds, the
SVVRCB shall not be obligated to make any disbursements to the Agency under this
Agreement. This provision shall be construed as a condition prent to the obligation of
the SWRCB to make any disbursements under this Agreement. Nothing in this Agreement
shall be construed to provide the Agency with a right of priority for disbursement over any
other agency. If any disbursements due the Agency under this contract are deferred
because sufficient funds are unavailable, such disbursement will be made to the Agency
when sufficient funds do become available.
SECTION 3. WITHHOLDING OF DISBURSEMENTS.
Section 3.1. The SWRCB may withhold all or any portion of the funds provided for by this Agreement
in the event that:
(A) The Agency has materially violated, or threatens to materially violate, any term, provision,
condition, or commitment of this Agreement;
(B) TheAgoncyfaUotomaintainrooaonob(epnognseshovvordconnp|edonofthmPr ject; or
(C) An acceptable Revenue Program is not submitted at the time of 90 percent disbursement
of funds provided for by this Agreement.
SECTION 4. PLEDGE AND LIEN OF NET REVENUES; RATES, FEES AND CHARGES;
ADDITIONAL PAYMENTS.
Section 4.1. Establishment of Enteise Fund. In order to carry out its obligation to pay the
Installment Payments, Additional Payments and, where applicable, System Obligations,
the Agency agrees and covenants that it shall establish and maintain the Enterprise Fund.
All Revenues received shall be deposited when and as received in trust in the Enterprise
Fund.
Section 4.2. Pledge of Net Revenues. The Net Revenues are hereby pledged and a security interest
granted therein in order to secure the payment of Installment Payments and Additional
Payments. The Net Revenues in the Enterprise Fund shall be subject to the lien of such
pledge without any physical delivery thereof or further act, and the lien of such pledge
shall be valid and binding as against all parties having claims of any kind in tort, contract
or otherwise against the Agency.
Section 4.3. Application and Purpose of the Enterprise Fund. Subject to the provisions of any
outstanding System Obligations, money on deposit in the Enterprise Fund shall be applied
and used first, to pay Operations and Maintenance Costs, and thereafter, all amounts due
on Installment Payments, Additional Payments and System Obligations due. After making
all payments hereinabove required to be made in each Fiscal Year, the Agency may
expend in such Fiscal Year any remaining money in the Enterprise Fund for any lawful
purpose of the Agency, including payment of subordinate debt.
Section 4.4. Rates, Fees and Charges. The Agency agrees, to the extent permitted by law, to fix,
prescribe and collect rates, fees and charges for the System during each Fiscal Year
which are reasonable, fair and nondiscriminatory and which will be at least sufficient to
yield during each Fiscal Year, Net Revenues equal to the Installment Payments,
.
City of Redlands
Agreement No.: 01-821-550-0
ISA No: C'06'4800-110
Page 1 of 3
EXHIBIT C —GENERAL TERMS AND CONDITIONS (GTC 201)
EXHIBIT C
GENERAL TERMS AND CONDITIONS
1, APPROVAL: This Agreement is of no force or effect until signed by both parties and approved by the
Department of General Services, if required. Contractor may not commence performance until such
approval has been obtained.
2. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid unless made in
wridng, signed by the parties and approved as required. No oral understanding or Agreement not
incorporated in the Agreement is binding on any of the parties.
3. ASSIGNMENT: This Agreement is not assignable by the Contractor, either in whole or in part, without
the consent of the State in the form of a formal written amendment.
4. AUDIT: Contractor agrees that the awarding department, the Department of General Services, the
Bureau of State Audits, or their designated representative shall have the right to review and to copy any
records and supporting documentation pertaining to the performance of this Agreement. Contractor
agrees to maintain such records for possible audit for a minimum of three (3) years after final payment,
unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access
to such records during normal business hours and to allow interviews of any employees who might
reasonably have information related to such records. Further, Contractor agrees to include a similar right
of the State to audit records and interview staff in any subcontract related to performance of this
Agreement. (GC 854O.7. PCC 1O115etseq.. CCR Title 2. Section 18S6).
5. INDEMNIFICATION: Contractor agrees to indemnifv, defend and save harmless the Stote, its officers,
agents and employees from any and all claims and losses accruing or resulting to any and all contractors,
subcontractors, suppliers, |abnrers, and any other person, firm or corporation furnishing or supplying work
services, materials, or supplies in connection with the performance of this Agreement, and from any and
all claims and losses accruing or resulting to any person, firm or corporation who may be injuredor
damaged by Contractor in the performance of this Agreement.
6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during any dispute.
7. TERMINATION FOR CAUSE: The State may terminate this Agreement and be relieved of any
payments should the Contractor fail to perform the requirements of this Agreement at the time and in the
manner herein provided. In the event of such termination the State may proceed with the work in any
manner deemed proper by the State. All costs to the State shall be deducted from any sum due the
Contractor under this Agreement and the balance, if any, shall be paid to the Contractor upon demand.
8, INDEPENDENT CONTRACTOR: Contractor, and the agents and employees of Contractor, in the
performance of this Agreement, shall act in an independent capacity and not as officers or employees or
agents of the State.
B. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of pe 'ury. the
minimunn, if not exact, percentage of recycled conhmnt, both post consumer waste and secondary waste as
defined in the Public Contract Code, Sections 12161 and 12200, in materials, goods, or supplies offered or
products used in the performance of this Agreement, regardless of whether the product meets the
required recycled product percentage as defined in the Public Contract Code, Sections 12161 and 12200.
Contractor may certify that the product contains zero recycled content. (PCC 10233. 10308.5. 10354)
City of Red lands
Agreement No.: O1-821'550'O
ISA No.: C'OG-48OO'11O
Page 5 of 5
EXHIBIT B — BUDGET DETAIL AND PAYMENT PROVISIONS
Additional Payments and debt service on System Obligations for such Fiscal Year. The
Agency may make adjustments from time to time in such fees and charges and may
make such classification thereof as it deems necessary, but shall not reduce the rates,
fees and charges then in effect unless the Net Revenues from such reduced ratms, fees
and charges will at all times be sufficient to meet the requirements of this section,
Section 4,5. Future Local Debt. All future debt incurred by the Agency shall be on parity withor
subordinate to, the Obligation.
SECTION 5. FINANCIAL MANAGEMENT SYSTEM AND STANDARDS.
The Agency agrees to comply with federal standards for financial management systems. The Agency
agrees that, at a minimum, its fiscal control and accounting procedures will be sufficient to permit
preparation of reports required by the federal government and tracking of Pject funds to a level of
expenditure adequate to establish that such funds have not been used in violation of federal or state law
or the terms of this Agreement. To the extent applicable, the Agency agrees to be bound by and to
comply with, the provisions and requirements of the federal Single Audit Act of 1984 (Pub. L.98'502)
Office of Management and Budget(OMB) Circular No, A-133, and updates or revisions, thereto.
SECTION 6. ACCOUNTING AND AUDITING STANDARDS.
The Agency will maintain separate Pject accounts in accordance with generally accepted accounting
principles. Theoontranto/sha|| comp|ywith 'S(andandoforAuditofGovernmenta1 {}rganizadons.
Programs, Activities and Functions" promulgated by the U,S, General Accounting Office. (40 CFR §
35.3135(|).)
SECTION 7. BUDGET.
Budget costs are contained in the Approval to Award Letter(s) (or engineer's estimates) which is attached
hereto and referenced as Exhibit E,
. .
City of Redlands
Agreement No.: 01-821-550-0
ISA No: C-OO-48OO'11O
Page 2 of 3
EXHIBIT C —GENERAL TERMS AND CONDITIONS (GTC 201)
10. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor and its
subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or
applicant for employment because of sex, race, co/or, ancestry, religious cnaed, national origin, physical
disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital
status, and denial of family care leave, Contractor and subcontractors shall insure that the evaluation and
treatment of their employees and applicants for employment are free from such discrimination and
harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and
Housing Act(Government Code Section 12990 (a-f) et seq.) and the applicable regulations promulgated
thereunder(California Code of Regulations, Title 2, Section 7285 et seq.). The applicable regulations of
the Fair Employment and Housing Commission implementing Government Code Section 12990 (o-f), set
forth in Chapter 5 of Division 4 of Title 2 of the California Code of Ragu|ationa, are incorporated into this
Agreement by reference and made a part hereof as if set forth in full. Contractor and its subcontractors
shall give written notice of their obligations under this clause to labor organizations with which they have a
collective bargaining or other Agreement.
Contractor shall include the nondiscrimination and comr ance provisions of this clause in all subcontracts
to perform work under the Agreement.
11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES contained in the
document CCC2O1 are hereby incorporated by reference and made a part of this Agreement by this
reference as if attached hereto.
12. TIMELINESS: Time is of the essence in this Agreement.
13. COMPENSATION: The consideration to be paid Contnactor, as provided heoain, shall be in
compensation for all of Contractor's expenses incurred in the performance hereof, including trave|, per
diem, and byxeo, unless otherwise expressly so provided,
14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance with the laws
of the State of California.
1G. ANTITRUST CLAIMS: The Contractor bysigning this agreement hereby oerhfiesthat ifthese services
or goods are obtained by means of a competitive bid, the Contractor shall comply with the requirements of
the Government Codes Sections set out below,
a. The Government Code Chapter on Antitrust claims contains the following definitions:
1). "Public purchase" means a purchase by means of competitive bids of gnodu, uemicea, or materials by
the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may
bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.
2). "Public purchasing budy" means the State or the subdivision or agency making a public purchase.
Government Code Section 4550.
b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted,
it will assign to the purchasing body all righb, title, and interest in and to all causes of action it may have
under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising
from purchases of gooda, moteha|s, or services by the bidder for sale to the purchasing body pursuant to
City of Redlands
Agreement No.: 01'821-550-0
ISA No.: C-06-4800'110
Page 3 of 3
EXHIBIT C —GENERAL TERMS AND CONDITIONS (GTC 201)
the bid. Such assignment shall be made and become effective at the time the purchasing body tenders
final payment to the bidder. Government Code Section 4552.
c. If an awarding body or public purchasing body nacoives, either through judgment or settlement, a
monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to
receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public
body any portion of the recovery, including treble damages, attributable to overcharges that were paid by
the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in
obtaining that portion of the recovery. Government Code Section 4553.
d. Upon demand in writing by the oosignor, the assignee sha||, within one year from such dernand,
reassign the cause of action assigned under this part if the assignor has been or may have been injured
by the violation of law for which the cause of action arose and (a) the assignee has not been injured
thereby, or(b) the assignee declines to file a court action for the cause of action. See Government Code
Section 4554.
16. CHILD SUPPORT COMPLIANCE ACT: "For any Agreement in excess of$100,000, the contractor
acknowledges in accordance with, that:
a). The contractor recognizes the importance of child and family support obligations and shall fully comply
with all applicable state and federal laws relating to child and family support enforcement, inc|uding, 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; and
b) The uontnyutor, to the best of its knowledge is fully complying with the earnings assignment orders of all
employees and is providing the names of all new employees to the New Hire Registry maintained by the
California Employment Development Department."
17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is unenforceable
or held to be unenforceable, then the parties agree that all other provisions of this Agreement have force
and effect and shall not be effected thereby.
18. UNION ORGANIZING For all contracts, except fixed price contracts of$50,000 or less, the Contractor
acknowledges that:
By signing this agreement Contractor hereby acknowledges the applicability of Government Code Section
16645 through Section 16649 to this agreement and agrees to the following:
a) Contractor will not amaist, promote or deter union organizing by employees performing work on a state
service contract, including a public works contract.
b) No state funds received under this agreement will be used to assist, promote or deter union organizing.
c) Contractor will not, for any business conducted under this agreement, use any state property to hold
meetings with employees or supemioors, if the purpose of such meetings is to assist, promote or deter
union organizing, unless the state property is equally available to the general public for holding meetings.
d) If Contractor incurs coots, or makes expenditures to ass|st, promote or deter union orDanizing.
Contractor will maintain records sufficient to show that no reimbursement from state funds has been
sought for these costs, and that Contractor shall provide those records to the Attorney General upon
request.
City of Redlands
Agreement No: 01-821-550-0
ISA No.: C'OG-48OO'118
Page 1 of 1
EXHIBIT D — SPECIAL CONDITIONS
[
None at this time,
[X] Special condition as follows:
The SVVRCB will consider the Agency in material breach of this Agreement if the Agency fails to
implement mitigation measures for water quality, specified in the Environmental Impact Report prepared
by the City, and fails to meet Project Performance Standards based on Waste Discharge Requirements as
specified in SVVRCB Resolution 2002-0118 approving a Preliminary Loan Commitment to the Agency.
City of Redlands
Agreement No,: O1-821-55O'O
ISA No.: C'OG-48OO'11U
Page 1 of 4
EXHIBIT E —APPROVAL TO AWARD LETTER
See Approval to Award letter dated April 23, 2003. This letter shows how the maximum financing
assistance amount. as described in Exhibit B, was determined.
State W ' ter Resources Contre' Board
Division of Financial Assistance
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PI : J
CERTIFIED MAIL NO. 7001 0320 0000 9689 2960
Return Receipt Requested
Mr. Gary Phelps
Municipal Utilities Director
City of Redland
35 Cajon Street, Suite 15A
Redland, CA 92373
Dear Mr. Phelps:
APPROVAL TO AWARD (ATA) —CITY OF REDLANDS, CONSTRUCTION OF 2003 WATER
RECYCLING PROJECT, STA 1 E REVOLVING FUND (SRF) LOAN NO. C-06-4800-110 AND
WATER RECYCLING CONSTRUCTION PROGRAM (WRCP) GRANT NO.WRCP-3804-030
We have reviewed the ATA request package submitted with the ATA Form 555-1 executed on
March 25, 2003. The Division of Financial Assistance approves the SRF and WRCP ATA construction
budget as follows:
CO G' O.R AMOUNT„BID r APPROVED C`ONSIRUGTION:COSTS
J.R. Filanc Construction Co., Inc. $19,014,655 $19,014,655
REQUESTED SRF LOAN WRCP GRANT TOTAL
ELIGIBLE ELIGIBLE ELIGIBLE
A. Construction $19,014,655 $6,471,382 $4,347,826 *$10,819,208
B. Allowances
Planning $420,992 $420,992 $0 $420,992
Design $861,763 - $654,671 $207,092 $861,763
Construction $1,680,908 $1,276,956 $403,952 $1,680,908
Administration $171,132 $130,002 $41,130 $171,132
Prime Engineering $45,997 $45,997 $0 $45,997
Value Engineering $55,000 $0 $0 $0
Total Requested by Agency $22,250,447
)
Total Eligible SRF Loan Project Costs (C-06-4800-110) $9,000,000
Total Eligible WRCP Grant Project Costs (WRCP-3804-030) $5,000,000
Total Eligible Project Costs for SRF & WRCP(Construction Sc Allowances) $14,000,000
Refer to the enclosed Construction Contractor Spreadsheet (Form No. 259) for the eligibility calculations.
* The eligible construction costs of$10,819,208 $5,310,133 (Cash on hand) =- $2,885,314 (SAWPA Grant)
$19,014,655 total eligible construction costs.
California �rzvironmental Protection Agency 1
NIr. Gary Phelps - 2 -
Please provide this office with a written response within 30 days of the date of this letter stating your
agreement or disagreement with this decision.
Send your response to:
Mr. Fred Johansen, Chief
Administration and Certification Section
State Water Resources control Board
Post Office Box 944212
Sacramento, CA 94244-2120
If you have not contacted Mr. Johansen within 30 days, this letter will serve as our final decision.
DISBURSEMENT SCHEDULE
1. Within 30 days, please submit to Ms. Lisa Fernandez, at the above address, a preliminary SRF
Disbursement Schedule (see enclosed format)which shows the estimated monthly amounts to be
requested during the construction period. The total should equal the approved SRF ATA budget
amount. This is needed to establish a preliminary disbursement schedule for your proposed loan
contract.
2. The processing of the binding loan contract will be delayed until funding becomes available. Your
agreement on the SRF ATA budget, submittal of a preliminary SRF Disbursement Schedule and
the completion of any other prerequisites should still be processed.
3. Please remember that the disbursements for costs incurred prior to the binding loan commitment may
be subject to the refinance rules in the SRF Policy.
CONSTRUCTION CONTRACT REQUIREMENTS
1. The enclosed Notice to Labor Unions or Other Organizations of Workers must be reproduced in
the quantity desired, completed by the contractor, and distributed to all unions and organizations that
might represent workers on the job.
2. Mail the following documents, if you have not already done so, to Mr. Vinoo Jain at the above
address as soon as they become available:
A. One copy of the form (see enclosed format) entitled Certification of Bond and Insurance
Coverage;
B. One copy of the Executed Construction Contract; and
C. One copy of the Notice to Proceed.
California Environmental Protection Agency,
Mr, Gary Phelps - 3 -
3. Recipients of the SRF assistance program are required to report MBE/WBE utilization to the
Division. Form MBEAVBE UR334 and the associated instructions for completing the UR 334
are enclosed.
If you have any questions, please contact Mr. Ken Gonzales at (916) 341-5683.
Sincerely,
ORIGINAL SIGNED BY
Mike Harper, Chief
Financial and Administration Unit
Enclosures
bcc: Fred Johansen, DFA
Vinoo Jain, DFA
Eva Kawada, DFA
Lisa Fernandez, DFA
s:fredj ohansensgroup\ken\ata4800-11 0.doc\deb
California Environmental Protection ,,tgency
City of Redlands
Agreement No.: 01-821-550-0
ISA Nu; C-O6-48OO-11O
Page 1 of 1
EXHIBIT F
APPLICABLE EFFLUENT LIMITATIONS AND APPROVED PLANS AND SPECIFICATIONS
Incorporated by reference are the following supporting documents;
APPLICABLE EFFLUENT LIMITATIONS
Waste Discharge Requirements, Order No. 98'54. adopted by the California Regional Water Quality
Control Boand, Santa Ana Region, on April 17, 1998.
APPROVED PLANS AND SPECIFICATIONS
Incorporated by reference are the Plans and Specifications approved by the Division on April 19, 2002.
which are the basis for the construction contract to be awarded by the City of Redlands to the J. R. Filanc
Construction Co.. Inc. following competitive advertising.
City of Redlands
Agreement No: 01-821-550-0
ISA No.: C'8G-48OO'11O
Page 1 of 3
EXHIBIT G — FINAL PLANS AND SPECIFICATIONS APPROVAL LETTER
See the Final Plans and Specifications Approval letter dated April 19, 2002 for the City of Redlands.
State V Iter Resources Contra Board
Division of Clean Water Programs
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APR 192 2
Mr. Gary G. Phelps, Utilities Director
City of Redlands
35 Cajon Street, Suite 15A
Redlands, CA 92373
Dear Mr. Phelps:
FINAL PLANS AND SPECIFICATIONS (P&S) APPROVAL; CITY OF REDLANDS (Cr1 Y);
WASTEWATER RECLAMATION AND TREATMENT PLANT UPGRADE PROJECT
(PROJECT); STATE REVOLVING FUND (SRF) LOAN PROGRAM; LOAN NO. C-06-4800-110
WATER RECYCLING CONSTRUCTION PROGRAM (WRCP) PROJECT NO. 3804-110
Thank you for submitting the signed P&S Approval forms and the Project Performance Standards for
the City's Project. We hereby approve the Final P&S and will initiate preparation of the loan contract
for the subject project.
Prior to receiving the Division of Clean Water Program's Approval-to-Award (ATA) the construction
contract, the City must complete the following items:
During Advertisement of Construction Contract and Before the Opening of Bids:
• Correct specifications on equipment or components that do not meet "Sole-Source Requirements."
Items that do not comply with Sole-Source Requirements will be ineligible for SRF Loan funding.
• Submit one copy of the As-Advertised P&S (preferably half-size drawings) and all addenda.
Clearly note the location, purpose, and estimated cost of any subsequent changes in the final P&S.
• Make the P&S available to bidders for at least 30 days before bid opening.
• Provide all addenda to all potential bidders a minimum of ten working days prior to the bid opening
date.
Enclosed are Minority and Women Business Enterprise (MBE/WBE) Compliance Guidelines to assist
potential contractors' meeting MBEJWBE requirements.
After bid opening
• Assure that the selected bidder is not excluded (debarred) from participating on federally funded
programs. You can determine a contractor bidding on this project is among the list of debarred
contractors by contacting Mr. Scott Stringer at (916) 324-8404.
ti California Ei,►'ira�r,inieutal k)roteclior1 Agency
APR 1 9 2CO2
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-
• Notify Mr. Stringer or tile Pre-construction rneetin, in advance or the scheduled date.
• Within five working days after the final selection of the contractor, please submit a complete ATA
Request package including:
A. A transmittal letter listing all items enclosed in the submittal;
B. A completed "State Revolving Fund Approval To Alcard Request" form (enclosed): and
C. All items listed in Section IV of the form.
This package should be sent to:
Mr. Mike Harper, Chief
Financial & Administration Unit
Division of Clean Water Programs
State Water Resources Control Board
1001 I Street, le Floor
Sacramento, CA 95814
If the mailing cannot be made, please contact Mr. Harper immediately at (916) 341-5820.
Please note that the Final FLU Approval contained herein assumes that the City has obtained the
necessary approval(s), permit(s), or exemption(s) from other regulatory agencies, especially where
construction activities might affect public health or water quality. This approval does not supersede
any Regional Water Quality Control Board or local health department orders or requirements.
If you have any questions regarding this letter or the enclosed P&S Approval foinis, please contact Mr.
Stringer by phone or string,es@cwp.swrcb.ca.gov.
Sincerely,
SIGNED BY
F. Wayne Pierson, Chief
Engineering Section
Loans and Grants Branch
Enclosures (MBE/WBE Guidelines, P&S Approval, Project Performance Standards, ATA Request)
cc: Mr. Gary Stewart Mr, Sudhir Pardiwala
Santa Ana Regional Black and Veatch
Water Quality Control Board 301 South Lake, Suite 803
3737 Main Street, Suite 500 Pasadena, CA 91101
Riverside, CA 9250 t-3339
California Environmental Protection ,17,7ency
City of Redlands
Agreement No.: 01-821'550'0
ISA No.: C-06-4800-110
Page 1 of 13
EXHIBIT H — FACILITIES PLAN APPROVAL LETTERS
See the Facilities Plan Approval etters dated December 28, 2001 and as amended on March 7, 2002.
State v ' iter Resources Conti-, - Board
Division ()I' Clean kVater Programs
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CERTIFIED MAIL NO. Z 444 482 S1.9
Return Receipt Requested
Mr. Douglas Headrick, RE.
Chief of Water Resources
City of Redlands
Municipal Utilities Department
35 Cajon Street, Suite 15A
Redlands, CA 92373
Dear Mr. Headrick:
FACILITIES PLAN APPROVAL (FPA); CITY OF REDLANDS (CITY); WATER
RECLAMATION AND TREATMENT PLANT UPGRADE PROJECT (PROJECT); WATER
RECYCLING CONSTRUCTION PROGRAM (WRCP) GRANT NO. 3804-110 AND STATE
REVOLVING FUND (SRF) LOAN NO. C-06-4800-110.
In accordance with the State Water Resources Control Board's (SWRCB) February 16, 1995,
Policy for Implementing the SRF for Construction of Wastewater Treatment Facilities (Policy),
amended on June 18, 1998, and the Water Recycling Funding Guidelines (Guidelines) dated
April 17, 1997, the Division of Clean Water Programs (Division) approves the facilities plan for
the subject project. Our approvaPis based on the following determinations:
1) A feasibility study dated April 2001 and supplemental information submitted
December 18, 2001, have been received and comply with Section IX. A, of the Policy and the
Guidelines.
2) The City has provided a Mitigated Negative Declaration (MND), a Notice of Determination
dated Eine 23, 2001, comments on the MND dated June 10, OIjt. and a city council
resolution adopting the MND. The Division's Environmental Review [nit has issued a
Caffornia Environmental Quality Act level environmental clearance: for the Project.
3) The City has provided an Urban Water Management Plan dated December 2000 and a City
Council resolution adopting the plan.
4) The Project will augment the State and local water supplies from the State Water Project, the
Colorado River, and local groundwater basins.
- . . . . • ..
California Enyirowuental Proteetwn ') 1,1
7/pi-7
_
Mr. I leadrick - -
Due to circumstances outside the scope of the Project, the SWRCB is not authorizing preliminary
SRI' loan commitments at this time. However, in order to proceed with the Project, the Division
will request the SWRCB to authorize a WRCP grant commitment at the February 2002 Board
meetinu. When the SWRCB resumes authorizing SRF loan commitments, the Division will
request the SWRCB to authorize a loan commitment for the remaining eligible portion of the
Project. This letter does riot constitute an offer for a WRCP grant or an SRF Loan.
PROJECT DESCRIPTION
The Project includes the construction of advanced wastewater treatment facilities at the existing
wastewater treatment plant and the installation of a recycled water pipeline to a power generating
facility. The proposed project will augment State and local water supplies by producing
approximately five million gallons per day (MGD)(5600 acre-feet/year) of recycled water. The
Project will also help achieve local watershed goals by reducing the amount of salts returned to
the local groundwater basin.
The City owns and operates the wastewater treatment facility that is to be upgraded. The facility
was originally built in 1960. Through upgrades, the facility's capacity is 9.5 MCD. The plant
currently receives an average dry weather flow of 6.5 MGD. The existing treatment processes
include primary and secondary clarification, activated sludge, anaerobic digestion, and
disinfection of the secondary effluent. Secondary effluent is currently discharged to percolation
ponds approximately one half mile from the plant. In order to provide recycled water to the
nearby power plant, a tertiary treatment process will be added to the existing facilities. The
higher quality effluent will meet all Title 22 discharge requirements.
As a result of negotiations between the City and the Mountain Valley Power Authority (MVPA),
tertiary treatment will be provided by micro-filtration instead of sand filtration, eliminating the
need for the power plant to additionally treat the recycled water prior to its use. In return, the
MVPA will give the City a credit for the quantity of salts deferred from the basin groundwater
through its use of recycled water.
PROJECT ELIGIBILITY
1. The Division has determined the items listed below are eligible for WRCP grant and SRF
loan funding. Detailed project component eligibility and eligible component size will be
determined during the review of the Plans and Specifications (P&S) and will be consistent
with this FPA letter.
A. Nitrification basin construction;
B. Membrane basin, filters and accessories;
C. Citric acid facility;
D. Ultra-Violet disinfection equipment:
California Environmental Protection Agency
Hcadrick 3
F. liprades to existinL, facilities includin :
I) 1-feadworks improvements
2) One sewage pump station
3) Peak pond pumps
4) Blowers & high pressure air system
5) Return activated sludge & waste activated sludge pumps and drives
6) Dissolved air flotation system
7) Chlorination system
8) Electrical and control building improvements
9) Site preparation and yard piping
2. The following items are not eligible for grant and loan funding:
A. Any items that replace/repair facilities that were previously constructed with Clean Water
Grant monies;
B. Facilities under construction or contracts given "Notice to Proceed" prior to the issuance
of Final P&S Approval by the Division;
C. Temporary job-site office trailers
D. Computer and office equipment for City or contractor staff
E. Costs of land, easements and rights of way;
F. Costs of retrofitting and modifications on private user sites;
G. Costs associated with operation and maintenance, extended warranties and/or certificates
for equipment, and earthquake insurance;
H. Costs of mitigation and/or clean up activities at sites/locations where hazardous materials
are found;
I. Construction contingencies
J. Construction change orders and claims;
K. Costs of applying for the WRCP grant and the SRF loan; and
L. Generally ineligible project items as provided in Appendix H of the Policy.
The estimated total construction cost of the Project is $27.3 million. The estimated eligible
construction cost is $19 million of which $5.0 million will be funded with a WRCP construction
grant and $6.7 million will funded with an SRF loan. The City will also be receiving a
$5,0 million grant from the Santa Ana Watershed Project Authority for the Project. The City will
Utilize $7.0 million from their own reserves towards the Project to maintain a total subsidy on the
etHiblc portion of the project at 50 percent.
California Environmental Protection Agency
Mr. Headrick - 4 -
Actual eligibility will be determined duriml, the P&S review. The WRCP construction grant
amount of$4.35 million plus $0.65 million (a 15 percent allowance for engineering, legal and
administration costs) is fixed. The SRF loan amount will be based on the actual bid amount of
the eligible facilities plus allowances as specified on Appendix I of the Policy.
PROJECT MILESTONES
The following is a schedule of project milestones with estimated dates of completion:
Milestone Date
Submit Loan Application November 9, 2001 (completed)
Submit Value Engineering Report and Submit
Draft Revenue Program February 18, 2002
Submit Final P&S February 18, 2002
Issue Final P&S Approval' April 8, 2002
Advertise for Bids April 15, 2002
Open Bids May 20, 2002
Submit Approval To Award Package June 5, 2002
Initiate Construction (Notice-to-Proceed) June 19, 2002
Execute funding contracts June 30, 2002
Submit Final Revenue Plan April 1, 2004
Complete Construction May 14, 2004
Submit Final Project Summary Report, Final
Financial Report and Final Payment Request August 16, 2004
Initiate Facilities Operation June 14, 2004
Certify Project Performance June 14, 2005
Normal Font —SWRCB / DCWP Activity
Bold Font—City of Redlands Activity
These dates are estimates and are subject to change. This schedule does not supersede any
regulatory enforcement schedule. Schedules must be compatible with requirements of the Santa
Ana Regional Water Quality Control Board (SARWQCB) enforcement actions related to the
proposed facilities. Special attention to the project milestone schedule is critical. Please contact
the Division's project manager immediately upon any changes to the above dates.
estimated date of issuance of Final PLS Approval may change due to the status of the SRF loan proLvam.
Califin-nia Environmental Protection Agency
Mr. Headrick - - 5 -
A Value Engineering. (VE) study and report is required for the Project. Please consult with
Division staff at the ten percent design stage regarding VE requirements. The VE study and
report should be completed during the early stages of design and shall describe all
recommendations. If any VE recommendations are not being implemented, the report must
discuss the reasons for rejection.
CONDITIONS OF APPROVAL
The FPA is conditional upon the following:
1. The approval includes only the project described herein and does not include any associated
projects that may have been referred to in the project documents or supplemental submittal.
This approval does not guarantee that a grant and loan will be awarded for this project or for
any subsequent project that may be necessary to assure that the approved project is
functional.
2. Copies of the notification to the recycled water user subject to the user agreement, a
statement of whether the notified user appealed the conditions of recycled water use, and
documentation showing the disposition of any appeals are to be submitted to the Division
- prior to Final P&S Approval and Approval-to-Award the construction contract.
3. A draft revenue program is to be submitted and approved by the Division prior to Final P&S
Approval.
4. The identified user is to be connected at the time this project becomes operational. If the user
is not connected, or changes occur, the Division shall be notified.
5. When the project begins operation, it will be monitored for progress in delivering recycled
water. Annual reports must he submitted for five years after the first year of operation. These
reports shall contain information of the actual recycled water delivered during each calendar
year and be submitted by the end of February.
6. The Project's cultural resources documents must receive clearance from the State Historic
Preservation Officer prior to Final P&S Approval.
The City will jeopardize WRCP grant and SRF loan funding for portions of the project if
construction begins prior to the Division's issuance of Final P&S Approval. Construction after
Final P&S Approval and prior to execution of the funding contract is eligible for funding.
This letter constitutes a Final Staff Decision. The Division will request that the SWRCB make a
preliminary grant and loan commitment for this project AFTER an agreement in writing on the
eligibility decisions, schedule, and other conditions in this letter has been received from you. To
expedite this process, please notify the Division immediately in writing if you agree with this
letter, so the Division staff can initiate the process or requesting SWRCB's approval for the
Citv's ‘VRCP grant and SRF loan.
California Environmental Protection Agency
Mr. Headrick - 6 -
It ,,rou are NOT in agreement, then you must request a Final Division Decision within ten
working days from the date of this letter. Your request should be specific on the items of
disagreement and suggest the exact changes with which you would agree. Please send the
request to:
Ms. Barbara L. Evoy, Chief
Division of Clean Water Programs
P.O. Box 944212
Sacramento, CA 94244-2120
Again, we must reach agreement in writing before your proposed project can be scheduled for
SWRCB approval of a preliminary funding commitment.
Please contact Mr. Bruce Locken at (916) 341-5718 if you have any questions or comments
regarding this letter.
Sincerely,
ORIGINY• ns.'.770 BY
James D. Kuykendall, Chief
Loans & Grants Branch
cc: Mr. Sudhir Pardiwala
Black & Veatch
201 S. Lake, Suite 803
Pasadena, CA 91101
Mr. Gerald J. Thibeault, E0
Santa Ana Regional Water Quality Control Board
3737 Main Street, Suite 500
Riverside, CA 92501-3339
bce: Wayne Pierson, DCWP
Diana Robles, DCWP
Jim Hockenberry, DCWP
Madeleine Him, DWCP
Eva Kawada, DCWP
Ron Blair, DCWP
Scott Stringer, DCWP
SALockcn1Water Recycling`REDLANDS\4800-1 10\Facilities PI:m Approval.doc
California Environmental Protection /Agency
State 'ater Resources Contr 1 Board
Division of.Clean 1,Vater Programs
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Mr. Gary G. Phelps
Utilities Director
City of Redlands
Municipal Utilities Department
35 Cajon Street, Suite 15A
Redlands, CA 92373
Dear Mr. Phelps:
AMENDED FACILITIES PLAN APPROVAL (FPA); CITY OF REDLANDS (CITY); WATER
RECLAMATION AND TREATMENT PLANT UPGRADE PROJECT(PROJECT); WATER
RECYCLING CONSTRUCTION PROGRAM (WRCP) GRANT NO. 3804-110 AND STATE
REVOLVING FUND (SRF) LOAN NO. C-06-4800-110.
In accordance with the State Water Resources Control Board's (SWRCB) February 16, 1995, Policy for
Implementing the SRF for Construction of Wastewater Treatment Facilities(Policy), amended on
June, 18, 1998, and the Water Recycling Funding Guidelines (Guidelines) dated April 17, 1997, the
Division of Clean Water Programs (Division) approves the amended facilities plan for the subject
project. This amended FPA supercedes the FPA dated December 28, 2001, previously issued to the city.
Our amended approval is based on the following determinations:
1) A feasibility study dated April 2001 and supplemental information submitted December 18, 2001
have been received and comply with Section IX. A. of the Policy and the Guidelines.
2) A value engineering study performed during the project design concludes with a recommendation of
the use of a chlorination disinfection process in place of the originally proposed ultraviolet
disinfection process.
3) The City has provided a Mitigated Negative Declaration (M-ND), a Notice of Determination dated
June 23, 2001, comments on the MND dated June 10, 2001, and a City council resolution adopting
the MND. The Division's Environmental Review Unit has issued a California Environmental
Quality Act level environmental clearance for the Project.
4) The City has provided an Urban Water Management Plan dated December 2000 and a City Council
resolution adopting the plan,
5) The Project will augment the State and local water supplies from the State Water Project, the
Colorado River, and local groundwater basins.
The SWRCB has authorized a WRCP grant commitment for the project at the February 2002 Board
meeting. However, due to circumstances outside the scope of the Project, the SWRCB is not authorizing
preliminary SRF loan commitments at this time. When the SWRCB resumes authorizing SRF loan
commitments, the Division Will request the SWRCB to authorize a loan commitment for the remaining
eligible portion of the Project. This letter does not constitute an offer for i WRCP grant or an SRF Loan.
- .71 41
- •
•
Mr. Phelps _ 1 _
PROJECT DESCRIPTION
The Project includes the construction of advanced wastewater treatment facilities at the existing
wastewater treatment plant and the installation °fa recycled water pipeline to a power generating
facility. The proposed project will augment State and local water supplies by producing approximately
five million gallons per day (MGD) (5600 acre-feet/year) of recycled water. The Project will also help
achieve local watershed goals by reducing the amount of salts returned to the local groundwater basin.
The City owns and operates the wastewater treatment facility proposed to be upgraded. The facility was
originally built in 1960. Through upgrades, the facility's capacity is 9.5 MGD. The plant currently
receives an average dry weather flow of 6.5 MGD. The existing treatment processes include primary and
secondary clarification, activated sludge, anaerobic digestion, and chlorination disinfection of the
secondary effluent. Secondary effluent is currently discharged to percolation ponds approximately one-
half mile from the plant. In order to provide recycled water to the nearby power plant, a tertiary
treatment process will be added to the existing facilities. The higher quality effluent will meet all Title
22 discharge requirements.
As a result of negotiations between the City and the Mountain Valley Power Authority(MVPA), tertiary
treatment will be provided by micro-filtration instead of sand filtration, eliminating the need for the
power plant to additionally treat the recycled water prior to its use. In return, the MVPA will give the
City a credit for the quantity of salts deferred from the basin groundwater through its use of recycled
water.
PROJECT ELIGIBILITY
1. The Division has determined the items listed below are eligible for WRCP grant and SRF loan
funding. Detailed project component eligibility and eligible component size will be determined
during the review of the Plans and Specifications (P&S) and will be consistent with this amended
FPA letter.
A. Nitrification basin construction;
B. Membrane basin, filters and accessories;
C. Citric acid facility;
D. Chlorine disinfection equipment;
E. Upgrades to existing facilities including:
I) Headworks improvements
2) One sewage pump station
3) Peak pond pumps
4) Blowers & high pressure air system
5) Return activated sludge Sc. waste activated sludge pumps and drives
6) Dissolved air flotation system
7) Chlorination system
California Environmental Protection Agency
\iFi. Phelps - 3 -
8) Electrical and control building improvements
9) Site preparation and yard piping
7. The following items are not eligible for grant and loan Funding:
A. Any items that replace/repair facilities that were previously constructed with Clean Water Grant
monies;
B. Facilities under construction or contracts given "Notice to Proceed" prior to the issuance of Final
P&S Approval by the Division;
C. Temporary job-site office trailers
D. Computer and office equipment for City or contractor staff
E. Costs of land, easements and rights of way;
F. Costs of retrofitting and modifications on private user sites;
G. Costs associated with operation and maintenance, extended warranties and/or certificates for
equipment, and earthquake insurance;
H. Costs of mitigation and/or clean up activities at sites/locations where hazardous materials are
found;
I. Construction contingencies
J. Construction change orders and claims;
K. Costs of applying for the WRCP grant and the SRF loan; and
L. Generally ineligible project items as provided in Appendix H of the Policy.,
The estimated total construction cost of the Project is $23.7 million. The estimated eligible construction
cost is $19 million of which $5 million will be funded with a WRCP construction grant and $6.7 million
will be funded with an SRF loan. The City will also be receiving a $5 million grant from the Santa Ana
Watershed Project Authority for the Project. The City will utilize $7 million from their own reserves
towards the Project to maintain a total subsidy on the eligible portion of the project at 50 percent.
Actual eligibility will be determined during the P&S review. The WRCP construction grant amount of
$4.35 million plus $0.65 million (a 15 percent allowance for engineering, legal and administration costs)
is fixed. The SRF loan amount will be based on the actual bid amount of the eligible facilities plus
allowances as specified on Appendix I of the Policy.
California Environmental Protection Agency
Mr. Phelps - 4 -
PROJECT MILESTONES
The following is a schedule of project milestones with estimated dates of completion:
Milestone Date
Submit Loan Application November 9,2001 (completed)
Submit Value Engineering Report and Submit
Draft Revenue Program March 18,2002
Submit Final P&S April 18,2002
Issue Final P&S Approvall June 7,2002
Advertise for Bids June 14,2002
Open Bids July 19,2002
Submit Approval To Award Package August 5,2002
Initiate Construction (Notice-to-Proceed) August 19,2002
Execute funding contracts August 30,2002
Submit Final Revenue Plan June 1,2004
Complete Construction July 14,2004
Submit Final Project Summary Report, Final
October 16, 2004
Financial Report and Final Payment Request
Initiate Facilities Operation August 14, 2004
Certify Project Performance August 14,2005
Normal Font—SWRCB/DCWP Activity
Bold Font—City of Redlands Activity
These dates are estimates and are subject to change. This schedule does not supersede any regulatory
enforcement schedule. Schedules must be compatible with requirements of the Santa Ana Regional
Water Quality Control Board (SARWQCB) enforcement actions related to the proposed facilities.
Special attention to the project milestone schedule is critical. Please contact the Division's project
manager immediately upon any changes to the above dates.
CONDITIONS OF APPROVAL
The FPA is conditional upon the following:
I. The approval includes only the project described herein and does not include any associated projects
that may have been referred to in the project documents or supplemental submittal. This approval
r kc eqiinated date of issuance or Final P&S Approval inay change due to the status at SRF loan program.
California Environmental Protection Agency
Mr. Phelps - 5
does not guarantee that a loan will be awarded for this project or for any subsequent project that may
be necessary to assure that the approved project is runctional.
Copies of the notification to the recycled water user subject to the user agreement, a statement of
whether the notified user appealed the conditions of recycled water use, and documentation showing
the disposition of any appeals are to be submitted to the Division prior to Final P&S Approval and
Approval-to-Award the construction contract.
3. A draft revenue program is to be submitted and approved by the Division prior to Final P&S
Approval.
4. The identified user is to be connected at the time this project becomes operational. If the user is not
connected, or changes occur, the Division shall be notified.
5. When the project begins operation, it will be monitored for progress in delivering recycled water.
Annual reports must be submitted for five years after the first year of operation. These reports shall
contain information of the actual recycled water delivered during each calendar year and be
submitted by the end of February.
6. The Project's cultural resources documents must dieive clearance from the State Historic
Preservation Officer prior to Final P&S Approval.
The City will jeopardize WRCP grant and SRF loan funding for portions of the project if construction
begins prior to the Division's issuance of Final P&S Appr.,val. Construction after Final P&S Approval
and prior to execution of the funding contract is eligible for funding.
This letter constitutes a Final Staff Decision. The Division will request that the SWRCB make a
preliminary loan commitment for this project AFTER an agreement in writing on the eligibility
decisions, schedule, and other conditions in this letter has been received from you. To expedite this
process, please notify the Division immediately in writing, if you agree with this letter, so the Division
staff can initiate the process of requesting SWRCB's approval for the SRF loan.
If you are NOT in agreement, then you must request a Final Division Decision within ten working days
from the date of this letter. Your request should be specific on the items of disagreement and suggest the
exact changes with which you would agree. Please send the request to:
Ms. Barbara L. Evoy, Chief
Division of Clean Water Programs
P.O. Box 944212
Sacramento, CA 94244-2120
Again, we must reach agreement in writing before your proposed project can be scheduled for SWRCB
approval of a preliminary funding commitment.
California Environmental Protection Agency
- -
Mr. Phelps - 6 -
['lease contact Mr. Scott Strituzer at (916) 324-3404 if you have any questions or comments reLzardin,*
this letter.
Sincerely,
James D. Kuykendall, Chief
Loans & Grants Branch
cc: Mr. Gerald J. Thibeault Mr. Douglas Headrick, P.E.
Executive Officer Chief of Water Resources
Santa Ana Regional Water City of Redlands
Quality Control Board Municipal Utilities Department
3737 Main Street, Suite 500 35 Cajon Street, Suite 15A
Riverside, CA 92501-3339 Redlands, CA 92373
Mr. Sudhir Pardiwala
Black& Veatch
201 South Lake, Suite 803
Pasadena, CA 91101
bcc': Wayne Pierson, DCWP Diana Robles, DCWP
Jim Hockenberry, DCWP Madeleine Him, DWCP
Eva Kawada, DCWP Ron Blair, DCWP
S:12002 Filing System\Engineering\Unit 31Stringer\REDLANDS\FPA Amended.doc/1 MAR 02/ANNE
California Environmental Protection Agency
City of Redlands
Agreement No.: 01'821'550-0
ISA No.: C-06-4800-110
Page 1 of 2
EXHIBIT I
SRF INSTALLMENT SALES AGREEMENT PAYMENT SCHEDULE
See the attached SRF Installment Sales Agreement Payment Schedule dated July 22, 2003. The final
SRF Installment Sales Agreement Payment Schedule will be forwarded to the Agency after all
disbursements have been paid and construction of the Prject has been completed.
EXHIBIT"I"
STATE OF CALIFORNIA
STATE WATER RESOURCES CONTROL BOARD .
STATE REVOLVING FUND PRELIMINARY INSTALLMENT SALES AGREEMENT(ISA)PAYMENT SCHEDULE
Date: 22-Jul-03
Recipient: CITY OF REDLANDS
ISA No,: C-08-4800-110 Original ISA Amount: $9,000,000
Agreement No. : 01-821-550-0 Interest Rate: 2.5%
Final Construction Date: November 30,2004 Term: 20 Years
Funding Source: Repayment(PCA#50501)
Construction Period Interest(CPI) Repayment
Beginning Annual Ending
Date Disbursement/ No, Principal Draw Amount Amt.Transferred Interest Principal Interest Total Principal
Repayment Balance Amount Accrued to Principal Accrued Paid/Due Paid/Due Repayment Balance
[A] ._ [ii]........_ (CI [D]=Prior(MI [EI [F] [GI=Sum[F] [H] III=[LI-[K] (J)=Annual]FI) [KI _ [L)=(01,[Elf[G)-(11
. ......_....__
01-Aug-03 Disbursement* 1 $0.00 $1,121,660.00 $1,121,660 00
01-Jan-04 Disbursement* 2 1,121,660.00 2,106,408.00 $11,683.96 3,228,068.00
01-Feb-04 Disbursement* 3 3,228,068.00 224,952.00 6,725.14 3,453,020 00
01-Mar-04 Disbursement* 4 3,453,020,00 939,854.00 7,193.79 4,392,874 00
01-Apr-04 Disbursement' 5 4,392,874.00 626,570.00 9,151.82
5,01'9,444.00
01-May-04 Disbursement* 6 5,019,444.00 884,568,00 10,457.18 5,904,012,00
01-Jun-04 Disbursement* 7 5,904,012.00 497,569.00 12,300.03 6 401 581.00
„
30-Jun-04 End FY 6,401,581,00 12,892.07 6,401,581,00
01-Jul-04 Disbursement' 8 6,401,581.00 608,141.00 444.55 7,009,722,00
01-Aug-04 Disbursement* 9 7,009,722.00 350,142.00 14,603,59
IIII 7,359,864.00
01-Sep-04 Disbursement' 10 7,359,864.00 479,141.00 15,333.05 7,839,005.00
01-Oct-04 Disbursement' 11 7,839,005.00 294,856.00 16,331.26 8,133,861.00
01-Nov-04 Disbursement* 12 8,133,861.00 386,999.00 16,945.54IIIIIMIIIII 8,520,860,00
30-Nov-04 Constr, Compl. 8,520,860.00 17,160.07 5
$151,222•° 8,672,082.05
01-Dec-04 Disbursement' 13 8,672,082.05 221,142.00 602.23 8,893,224.05
01-Jan-05 Disbursement* 14 8,893,224.05 257,998.00 18527.55 9,151,222.05
30-Jun-05 End FY 9,151,222,05 113754.77 9,151,222,05
30-Nov-05 Repayment' 1 9,151,222.05 95,325.23 $358779.12 11$228209.78 $586,988.90 8,792,442.93
30-Nov-06 Repayment* 2 6,792,442,93 219,811.07 367,177.83 219,811.07 586,988.90 8,425,265.10
30-Nov-07 Repayment' 3 8,425,265,10 210,631.63 376357.27 210,631.63 586,988.90 8,048,907.83
30-Nov-08 Repayment' 4 8,048,907.83 201222.70 385766.20 20122270 586,988.90 7,663,141.63
30-Nov-09 Re.a ment* 5 7,663,141.63 191578,54 395,410.36 191578.54 586,988.90 7,267,731.27
30-Nov-10 Repayment' 6 7,267,731,27 81693.28 405295.62 181693.28 586,988.90 6,862,435.65
30-Nov-11 Repayment' 7 6,662,435.65 1171560.89 415428.01 171560,69 586,988.90 6447,007,64
30-Nov-12 Repayment* 8 6,447,007.64 161175.19 425813.71 161,175.19 586,988.90 6021,193.93
30-Nov-13 Repayment* 9 6,021,193.93
150,529.85 436459.05 150,529.85 586,988.90 5,584,734.88
30-Nov-14 Repayment* 10 5,584,734.88 139,618.37 447,370.53 139,618.37 586,988.90 5137364.35
30-Nov-15 Repayment* 11 5,137,364.35128434.11 458,554.79 128434.11 586,988.90 4,678,809.56
30-Nov-16 Repayment* 12 4,678,809.56 116,970.24 470,018.66 116,970.24 586,988.90 4,208790.90
30-Nov-17 Repayment* /3 4,208,790.90 105219.77 481,769.13 105,219,77 586,988.90 3,727,021.77
30-Nov-18 Repayment* /4 3,727,021.77 93175.54 493,813.36 93,175.54 586,988.90 3233208.41
80830,21 586,988.90 2727a .30-Nov-19 Repayment* 15 3,233,208,41 80,830.21 506158.69
30-Nov-20 Re.a ment* 16 2,727,049.72 6817624 • 518812.66 68,176,24 586,988.90 220823706
30-Nov-21 Repayment' 17 2,208,237.06 55205.93 531,782.97 55205.93 586,988.90 1676454.09
30-Nov-22 Repayment• 18 1,676,454.09 41911.35 45077.55 4191135 586,988.90 1,131,376.54
30-Nov-23 Repayment" 19 1,131,376,54 28284.41 558,704.49 28284.41 586,988.90 572672.05
30-Nov-24 Re.a men] I
' 20 572,672,05
14316.80 572672.05 14316.80 586,988.85 000
59,000,000.00 $151,222,05 $151,222.05 $2.588,555.90 $9,151,222.05 $2,588555.90 $11, , .
1.111111.1111111 _____.....,.............._73977795
* Disbursement, interest and repayment amounts are subject to recalculation based on actual time and amount of disbursements and final construction completion date,
. .
City of Redlands
Agreement No: 01-821-550-0
ISA No: C-OS-48OO'11O
Page 1 of 2
EXHIBIT J — SCHEDULE OF SYSTEM OBLIGATIONS
The following outstanding debt term is senior to this Obligation:
Attachment Agreement No. | ISA No, | Debt Name | Total Amt, | Amt. Remaining End date
Redlands | 517.770.000 / $15,67000 September 1. 2o1r
Financing
Authority
The following debt is parity to this Obligation:
Attachment Agreement No. ISA No, L Debt Name Total Amt. Amt. Remaining End date
N/A
_-
The following debt is subordinate to this Obligation:
Attachment Agreement No. ISA No, Debt Name | Amt. Remaining ) End date
N/A
— |
,e-03 OT:4Iam From-CITY OF REDLANDS MUNICIPAL UTILITIES 9097987670 T-864 P.02/02 F-299
NEW ISSUE— BOW: ENTRY ONL1 RATINGS: S&P: AAA
FITCI I. AAA
t FSA Insu(ed)
In Hie ophi,on of Orn,l... flernty,flon ti Sdte1,ff, LL? Lo v-4„gel., CQ/d ,wi.. Bowl Comvcrl. baSed 4,1)an Js! 4111.-,1."10 cif c t IV ihy
.1 rC'4'1,1(11ic,it . etilit,g7 alit! euttrt ,,lecif;0,, . and oi,,,,;ho,-7, ailiOil v//in i 1.1101icr, COMpIlaliCc p.ill, Certain covenant'. wIcrvsl u,t tll,..
BotN2s Ls elci,tazt I jeolit gra“ ,, CO Tic.1;-ti•Jcaerol,,ii cc la., pt.trrocc:. tithicr SeCliOil !03 ,,f ihe later-I:al Reieniae Code of /9-5'6 athi i,
<-.J.-e,iipr fro., Calif,/wu prrsoliati,icOme 1L'ke.‘ It the fp,Ihc, Opithod of Bora Co,imel. rillcieCI on the Bwitl.t 1:$ nut a-spccirle prcieren"-
iteni jo,'p.reoscs 0/ ihr federal ',rah icliiat Cr corport,I,alto-der,VC »)/o/p/11,//i 10 kC.% altIto,,:,,it B,,,t,1 Coutttel obseerec Mut %,4eh interest
is i.iNtar1 r, ctal,,%ted caffettl earrimgv ,lie, ;cicularilig co,perale alterl,utile nililiohisil le.kable tro.wilt• Buncl ClIli'll.rd ekpretCc7 1)v
vpirlioil reyOr011lg Oili- other ray co,hr:i,,,neet retatett to (lir i.",Icliillp Or OiSpOSMOr, of 0, the accrual Or rvcerpt 4 or1err.,1 Qrt !Iry
201,-al Ser -OTHER I:yr-ORA-IA TIOA'— Afatiers' here,/,
Si 7,770.000
REDLANDS FINANCING AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS
SERIES 1999A
Doted, Dare of Deliiery Due. September 1, as shoun belos.
The captioned bonds (the -Bond, ) arc being issued by the Redlands Financing Authority (the 'Authortty-) CO (i) providc kind, (0
refund on .: current basis the outstanding City of Redlands Certificutes of P4rticipation i i99.3 Sewer Fatalities Refunding Project).
(„) road a rcjCr,e fund for the Bonds. and Hi) pa'. certain costs incurred in connection with using the Bonds. The Bonds are being
cd pur5u3r1; ro thc provision.; of the Mark -Roos Local Bond Pooling Act of 1985 and a Trust Agreement. dated as of June 1 1990
i thc * Trust Acreerticnt-). by and between the Authority and U.S. Bank Trust National Assiactarion. as trustee (the -Trastee-).
The 13orldi Jrc Nyable from and secured by a pledge of revenues (the-Revenues..).conibnn:primanly of amounti to he paid by the Ciry to
the Authonry pursuant to an Ian:aliment Sale Agreement gated as OCJunc !. 1999 (the-Instaliment Sale Agrecment-).between the AulliOnty.
seller. and the City as purt:haser. The Ciry is obligated to make payments under Mc Installment Sale AgrreMcnt solely from -Nei Wostesvater
Resent:es . which arc defined ui the Installment Sale Agreement to be gross Income and revenue received by the Cn) from the ownership or
op,ear.on of the Wasto... tdr SrAcm.le,the costs of mainr.aann and operating the Wasrewa-tei Sp LCTII (the"MCLUItCn.InCC zind Operation Cost.s .
The Bonds will bear interest at the rates snown beim..payaole semiannuolly on March i and September i of each year. commencing
September I. i 999 and wit) be issued In fully registered form in the denomination of S5.1)00 or any integral multiple thereof The Bongs
,ii be issued in be-oK-entry only form.initially registered in the name of Cede&Co.as nominee of The Depository Trust Company. Nel+
York. Nc‘.i York ("DTC '.). Purchasers of the Bondi will not receive certificates represenung their interests therein.
Tne principal of and premium. if any. on Inc Bonds will be payable upon presentation and surrender of such Bonds. when due. _1(
the office of the Trustee For so tong J1 the Bonds arc revistercd in the name of Cede & Cu. ttic Trustee will make all payments of
pnriiipai of and interest on the Bonds to DTC. which. in turn. is obligated to remit such pnncipal and interest to DTC Participants t as
defined herein) for subsequent distribution CO the Beneficial Owners' (as defined herein) ot the Bonds
Prior to their maturity, the Bonds ore subject ro optional redenipriun, mandatory redemption (rum sinking fund payments and
exrraurdinary redemption, as described herein. See "THE BONDS— Redemption."
Thescheduled payment of principal of and interest on the Bonds when duc will be guaranteed under an insurance policy to be
issued concurrently with the deliyery of the Bonds by FINANCIAL SECURITY ASSURANCE INC (the "Bond Insurer").
P FSA
THE BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY AND ARE PAYABLE SOLELY FROM
REV EN UES AS DESCRIBED HEREIN NEITHER THE BONDS NOR THE OBLIGATION TO PAY PRINCIPAL OF"OR
I NT E REST THEREON CONSTITUTES A DEBT OR A LIABILITY OF THE AUTHORITY. THE COUNTY OF SAN
BERNARDINO. THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEAN-
ING OF ANY CONSTITUTIONAL LIMITATION ON INDEBTEDNESS. IN NO EVENT SHALL THE BONDS BE
PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN THOSE OF THE AUTHORITY AS DESCRIBED
HEREIN
ins cover page contain; certain information for quick reference only. It is not A summary of this issue of Bonds. investors must
read the entire Official Statement to obtain information essential CO the making of on lnforrnea investment decision with respect to the
purchase of inc hands
MATURITY SCHEDULE
Nrat,,r,(, 1-riftcip41 (facie. Afahorll. Prle)Pdi IllIcreal
I S•1:11/,ter I I Allawalt ti,,Al .1 wid I Sep14113tIcr II iiiluallf R..ne 1-,.-ici
2000 S 675 000 3700% 3 400% 2007 S '495 000 4.400% 4 400%
)00 I 700.000 3.700 3 700 2008 930.000 4 500 4 500
7007 725.000 4 000 3.850 2009 975 000 4 500 4.600
7003 753 000 3 900 3 950 2010 I 015 000 4.600 4700
2004 7S5.000 4.000 4 050 2011 1.065 000 4.750 4.850
7003 015.0(10 4 750 4 200 2012 1.115,000 4.873 4 980
2006 2555.300 4 300 4 300 -
So,465,000 3.01.1t1 Term Bonds Due September 1, 2017 Priced to yield: 3.20%
Thr hlonds are altered ,...hcn. .15 and if isiaeo and received O) the Ul1dCrwiliCr and subject to the approval It'S to their ielzulity by
Orricl. Herr:beton & Sutclitfc LLP Los Anceles California Bond Counsel, Certain legal matter; will bc passed upon for the
Authority and :hc City iij the Citj Atturne> and ler the Under,,riter by JOner. Hall, A Professional Law Corporation San Froncisco,
Cal:lc:ma 1[ I,. .4.ril,C:pAcC that the Bond ,ill he delivered in definitive form throuen DIC on or about June 23. 1999
Stone & Youngberar, LLC
D..:tc.d .1L,t1c 10. 1999
City of Redlands
Agreement No: 01-821-550-0
ISA No.: C-06-48O0'11O
Page 1 of 5
EXHIBIT K — TAX COVENANTS
SECTION 1. GOVERNMENTAL UNIT.
The Agency is a state or local governmental unit as defined in Section 1.103-1 of the Treasury
Regulations or an instrumentality thereof(a "Governmental Unit") and is not the federal government or any
agency or instrumentality thereof. The Agency exclusively owns and, except as provided in Section 7
hereof, operates the Project.
SECTION 2. TEMPORARY PERIOD.
The Agency reasonably expects that at least eighty-five percent (85%) of the Project Funds will be
allocated to expenditures for the Project within three years of the earlier of the effective date of this
Agreement or the date the Bonds are issued ( Applicable Date'). The Agency has incurred, or reasonably
expects that it will incur within six months of the Applicable Date, a substantial binding obligation (i.e., not
subject to contingencies within the control of the Agency or a related party) to a third party to expend at
least five percent(5%) of the Project Funds on the costs of the Project. The completion of acquisition,
construction, improvement and equipping of the Project and the allocation of Project Funds to
expenditures for the Pject will proceed with due diligence.
SECTION 3. WORKING CAPITAL.
No operational expenditures of the Agency or any related entity are being, have been or will be financed or
refinanced with Project Funds.
SECTION 4. EXPENDITURE OF PROCEEDS.
Project Funds shall be used exclusively for the following purposes: (i) architectural, engineering,
surveying, soil testing, and similar costs paid with respect to the Project incurred prior to the
commencement of construction and in an aggregate amount not exceeding twenty percent (20%) of the
Project Funds, (ii) capital expenditures relating to the Project originally paid by the Agency on or after the
date hereof, (iii) interest on the Obligation through the later of three years after the Applicable Date or one
year after the Project is placed in service, and (iv) initial operating expenses directly associated with the
Project in the aggregate amount not more than five percent (5%) of the Project Funds.
SECTION 5. PRIVATE USE AND PRIVATE PAYMENTS.
None of the Project Funds or the Project are, have been or will be used in the aggregate for any activities
that constitute a Private Use (as defined below). None of the principal of or interest with respect to the
Installment Payments will be secured by any interest in property (whether or not the Project) used for a
Private Use or in payments in respect of property used for a Private Use, or will be derived from payments
in respect of property used for a Private Use. "Private Use" means any activity that constitutes a trade or
business that is carried on by persons or entities, other than a Governmental Unit. The leasing of the
Project or the access by or the use of a person or entity other than a Governmental Unit on a basis other
than as a member of the general public shall constitute a Private Use.
SECTION 6. NO DISPROPORTIONATE OR UNRELATED USE.
None of the Project Funds or the Project are, have been or will be used for a Private Use that is unrelated
or disproportionate to the governmental use of the Prolect Funds.
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-O8-4BOO'11O
Page 2 of 5
EXHIBIT K—TAX COVENANTS
SECTION 7. MANAGEMENT AND SERVICE CONTRACTS.
VVith respect to management and service contracts, the determination of whether a particular use
constitutes Private Use shall be determined on the basis of applying Section 1.141-3(b)(4) of the Treasury
Regulations and Revenue Procedure 97-13 and other applicable rules and regulations. As of the date
hereof, none of the Project Funds or the Project are being used to provide property subject to contracts or
other arrangements with persons or entities engaged in a trade or business (other than Governmental
Units) that involve the management of property or the provision of services that do not comply with the
standards of the Treasury Regulations and Revenue Procedure 97-13.
Except to the extent the Agency has received an opinion of counsel expert in the issuance of state and
local government bonds the interest on which is excluded from gross income under Section 103 of the
Code ("Nationally-Recognized Bond Counsel") and satisfactory to the SWRCB and the Bank to the
contrary, the Agency will not enter into any management or service contracts with any person or entity that
is not a Governmental Unit for services to be provided with respect to the Projectsxoeptm/ithreopeotto
contracts where the following requirements are complied with: (i) the compensation is reasonable for the
services rendered; (ii) the compensation is not based, in whole or in part, on a share of net profits from the
operation of the Pject; (iii) not more than twenty percent(20%) of the voting power of the Agency in the
aggregate may be vested in the service provider and its directors, officers, shareholders and employees
and vice versa; (iv) any overlapping board members between the Agency and the service provider must
not include the chief executive officer or executive director of either, or their respective governing bodies;
and (v):
(A) At least ninety-five percent(95%) of the compensation for services for each annual period
during the term of the contract is based on a periodic fixed fee which is a stated dollar
amount for services rendered for a specified period of time. The stated dollar amount
may automatically increase according to a specified objective external standard that is not
linked tothe output oreffioiennyofafacility, e.&[. the Consumer Price Index and similar
external indices that track increases in prices in an area or increases in revenues or costs
in an industry are objective external standards. A fee shall not fail to qualify as a periodic
fixed fee as a result of a one-time incentive award during the term of the contract under
which compensation automatically increases when a gross revenue or expense target
(but not both) is reached if that award is a single stated dollar amount. The term of the
oontnaot, including all renewal opdons, must not exceed the lesser of eighty percent(8096)
of the reasonably expected useful life of the financed property and fifteen (15) years
(twenty (20) years for''public utility property"within the meaning of Section 168(i)(10) of
the Code);
(B) At least eighty percent (80%) of the compensation for services for each annual period
during the term of the contract is based on a periodic fixed fee, The term of the contract,
including all renewal opdons, must not exceed the lesser of eighty percent(8096) of the
reasonably expected useful life of the financed property and ten (10) years. A one-time
incentive award during the term of the contract similar to the award described in
subsection (A) above is permitted under this option as well;
(C) At least fifty percent (50%) of the compensation for services for each annual period during
the term of the contract is based on a periodic fixed fee or all of the compensation for
services is based on a capitation fee or combination of a periodic fixed fee and a
capitation fee. A capitation fee is a fixed periodic amount for each person for whom the
service provider or the Agency assumes the responsibility to provide all needed services
` .
City of Redlands
Agreement No.: 01-821-550-0
ISA No: C'OO-48OO'11O
Page 3 of 5
EXHIBIT K-TAX COVENANTS
for a specified period so long as the quantity and type of services actually provided to
covered persons vary substantially; e.g.. a fixed dollar amount payable per month to a
service provider for each member of a plan for whom the provider agrees to provide all
needed services for a specified period. A capitation fee may include a variable
component of up to twenty percent (2096) of the total capitation fee designed to protect
the service provider against risks such as catastrophic loss. The term of the contract,
including all renewal options, must not exceed five (5) years. The contract must be
terminable by the Agency on reasonable notice without penalty or cause, at the end of the
third year of the contract;
(D) All of the compensation for services is based on a per-unit fee or a combination of a per-
unit fee and a periodic fee.
er-unitfeeandopehodiufae. A per-unit fee is defined to mean a fee based on a unit of
service provided as specified in the contract or otherwise specifically determined by an
independent third porty, such as the administrator of the program or the Agency; e.g., a
stated dollar amount for each specified procedure performed, car parked or passenger
mile is a per-unit fee. The term of the contnact, including all renewal npbons, must not
exceed three (3) years. The contract must be terminable by the Agency on reasonable
notice, without penalty or cause, at the end of the second year of the contract term; or
(E) All of the compensation for services is based on a percentage of fees charged or a
combination of a per-unit fee and a percentage of revenue or expense fee. During the
start up pehnd, hmmever, compensation may be based on a percentage of either gross
revenues, adjusted gross revenues or expenses of a facility. The term of the contract,
including renewal options, must not exceed two (2) years. The contract must be
terminable by the Agency on reasonable notice without penalty or cause, at the end of the
first year. This type of contract is permissible only with respect to contracts under which
the service provider primarily provides services to third parties, and management
contracts involving a facility during an initial start-up period for which there have been
insufficient operations to establish a reasonable estimate of the amount of the annual
gross revenues and expenses (e.g. a contract for general management services for the
first year of the operations).
If the compensation terms of a management or service contract are materially nevined, the
requirements for compensation terms must be retested as of the date of the material
revision and the management or service contract is treated as one that was newly
entered into as of the date of the material revision,
A renewal option, for purposes of the foregoing, is defined to mean a provision under
which the service provider has a legally enforceable riaht to renew the contract. Thus, for
example, a provision under which a contract is automatically renewed for one year
periods absent cancellation by either party is not a renewal option, even if it is expected to
be renewed,
A cancellation penalty is defined to include a limitation on the Agency's ability to compete
with the service provider, a requirement that the Agency purchase equipment, goods or
services from the service provider. and a requirement that the Adency pay liquidated
damages for cancellation of the contract: in oomparisun, a requirement effective on
cancellation that the Agency reimburse the service provider for ordinary and necessary
expenses or a restriction against the Agency hinno key personnel of the service provider
is generally not a contract termination penaltyAnother contract between the service
City of Redlands
Agreement No.: 01'821'550'0
ISA No.: C'06-4800'110
Page 4 of 5
EXHIBIT K-TAX COVENANTS
provider and the Agency, such as an Installment Sales Agreement or guarantee by the
service provider, is treated as creating a contract termination penalty if that contract
contains terms that are not customary or arm's length, that could operate to prevent the
Agency from terminating the contract (e.g., provisions under which the contract
terminates if the management contract is terminated or that places substantial restrictions
on the selection of a substitute service provider).
The service provider must not have any role or relationship with the Agency, that, in
effect, substantially limits the Agency's ability to exercise its righb;, including cancellation
hghbs, under the contoact, based on all the facts and circumstances.
SECTION 8. NO DISPOSITION OF FINANCED PROPERTY.
The Agency does not expect to sell or otherwise dispose of any portion of the Project, in whole or in part,
prior to the final maturity date of the Obligation.
SECTION 9. USEFUL LIFE OF PROJECT
The economic useful life of the Project is at least 20 years from the ProjecCompletion.
SECTION 10. INSTALLMENT PAYMENTS.
Installment Payments generally are expected to be derived from current revenues of the Agency in each
year, and current revenues are expected to equal or exceed debt service on the Obligation during each
payment period.
SECTION 11. NO OTHER REPLACEMENT PROCEEDS.
The Agency will not use any of the Project Funds to replace funds of the Agency which are or will be used
to acquire investment property reasonably expected to produce a yield that is materially higher than the
yield on the Bonds.
SECTION 12. REIMBURSEMENT RESOLUTION.
Not applicable.
SECTION 13. CHANGE IN USE.
The Agency reasonably expects to use all ProjecFunds and the Pj ct for the entire stated term to
maturity of the Obligation. Absent an opinion of Nationally-Recognized Bond Counsel to the effect that
such use of Project Funds will not adversely affect the exclusion from federal gross income of interest on
the Bonds pursuant to Section 103 of the Code, the Agency will use the property financed or refinanced
with Project Funds solely as set forth in the Agreement.
SECTION 14. NO FEDERAL GUARANTEE.
The Agency will not directly or indirectly use any of the Prject Funds that would cause the Bonds to be
"federally guaranteed" within the meaning of Section 149(b) of the Code.
SECTION 15. NO NOTICES OR INQUIRIES FROM IRS,
^ .
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-06-4800-110
Page 5 of 5
EXHIBIT K — TAX COVENANTS
The Agency has not received any notice or inquiry by the Internal Revenue Service within the last 10
years regarding any obligations issued by the Agency, the interest on which obligations is excludable from
federal income taxation.
SECTION 16. AMENDMENTS.
The provisions in this Exhibit K may be amended or supplemented at any time to reflect changes in the
Code upon obtaining an opinion of Nationally-Recognized Bond Counsel that such amendment will not
adversely affect the exclusion from federal gross income of interest on the Bonds pursuant to Section 103
of the Code.
SECTION 17. REASONABLE EXPECTATIONS.
To the best of my know/edge, information and be|ief, and based on the facts and estimates as set forth in
the tax covenantin this Exhibit K, the expectations of the Agency as set forth in this Exhibit K are
reasonable. The Agency is not aware of any facts or circumstances that would cause it to question the
accuracy or reasonableness of any representation made in the provisions in this Exhibit K.
City of Redlands
Agreement No.: 01-821-550-0
ISA No: C-OG'48OO'11O
Page 1 of 1
EXHIBIT L
AGENCY REIMBURSEMENT RESOLUTION
Not applicable.
. "
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-0G'4OOO'11O
Page 1 of 5
EXHIBIT M — SWRCB SPECIAL TERMS AND CONDITIONS
SECTION 1. COPYRIGHTS.
The Agency agrees that the U,S. Environmental Protection Agency shall have a roya|h/-free, nonexclusive
and irrevocable license to reproduce, pub/ish, otherwise use, and to authorize others to use, for federal
government purposes: (a) The copyright in any work developed under this Agreement, and (b) any rights
of copyright which the Agency may purchase where costs of such purchase are reimbursed with Project
Funds.
SECTION 2. COVENANTS,
Section 2.1. Tax Covenant. Notwithstanding any other provision hereof, the Agency covenants and
agrees that it will comply with the Tax Covenants set forth in Exhibit K attached hereto.
Section 2.2. Disclosure of Financial Information, Operating Data and Other Information. The Agency
covenants to furnish certain financial 27d operating data pertaining to the Agency that
may be required to either: (i) enable t '3WRCB to secure an Indenture by this
Agreement and issue any Bonds; or anab|eany underwriter tocomply with Rule 15u2'
12(b)(5) oftheSecuritienandExohangeCommission, The Agency further covenants to
provide the SWRCB with copies of ,tinuing disclosure reports concerning the
Agency required by the terms of any 7 ancing other than this Agreement, including
myportsnaquinedtobefi|edinonderh000mp|ywithRu|e1Ob'5. andbasmndsuchreports &z
the SWRCB at the same time such re::_orts are sent to any dissemination agent, trustee,
nationally recognized municipal securrJes information repository or other person.
SECTION 3. ASSIGNABILITY.
The Agency agrees and consents to any pledge, sale or assignment to the Bank or a trustee for the
benefit of the owners of the Bonds at any time of any portion of the SVVRCB's estate, right, title and
interest and claim in, to and under this Agreement and the right to make all related waivers and
agreements in the name and on behalf of the SWRCB, as agent and attorney-in-fact, and to perform all
other related acts which are necessary and appropriate under this Agreement, if any, and the SWRCB's
estate, right, title and interest and claim in, to and under this Agreement to Installment Payments (but
excluding the SWRCB's rights to Additional Payments and to notices, opinions and indemnification under
each Obligation).
SECTION 4. STATE REVIEWS AND INDEMNIFICATION.
The parties agree that review or approval of Pject plans and specifications by the SWRCB is for
administrative purposes only and does not relieve the Agency of its responsibility to properly plan, deoign,
construct, operate, and maintain the PrjeotTotheextentpe/mittedby |avv. MneAgencyagreeato
indemnify, defend and hold harmless the SVVRCB, the Bank and any trustee and their officers, employees
and agents for the Bonds (collectively, "Indemnified Persons") against any loss or liability arising out of any
claim or action brought against any Indemnified Persons from and against any and all losses, claims,
damages, liabilities or expenses, of every conceivable kind, character and nature whatsoever arising out
of, resulting from, or in any way connected with (1) the System or the Project or the conditions, occupancy,
use, possession, conduct or management of, work done in or about, or the planning, design, acquisition,
installation or constructionof the System or the Prjeotoranypartthoreot (2) thecarryingoutofanyof
the transactions contemplated by this Agreement or any related document; (3) any violation of any
applicable law, ru/eorreOu|ahon. 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 California Hazardous Waste Control Law and California Water Code Section
City of Redlands
Agreement No.: 01-821-550-0
ISA No.: C-06-4800-110
Page 2 of 5
EXHIBIT M — SWRCB SPECIAL TERMS AND CONDITIONS
and Recovery Act, the California Hazardous Substance Account Act, the Federal Water Pollution Control
Act, the Clean Air 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 System; 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 Agency for use in any disclosure document utilized in connection with any of
the transactions contemplated by this Agreement. To the fullest extent permitted by law, the Agency
agrees to pay and discharge any judgment or award entered or made against Indemnified Persons with
respect to any such claim or action, and any settlement, compromise or other voluntary resolution. The
provisions of this section shall survive the discharge of the Agency's Obligation hereunder.
SECTION 5. LIABILITY OF AGENCY.
Notwithstanding anything contained herein, the Agency shall not be required to advance any moneys
derived from any source of income other than Net Revenues and the other funds legally available for the
payment of the Installment Payments, and other payments required to be made by it hereunder, or for the
performance of any agreements or covenants required to be performed by it contained herein. The
Agency may, however, but in no event shall be obligated to, advance moneys for any such purpose so
long as such moneys are derived from a source legally available for such purpose and may be legally
used by the Agency for such purpose.
SECTION 6. FEDERAL MBE/WBE REPORTING.
The Agency agrees to report MBE/WBE utilization to the Division on the MBE/WBE Utilization Report,
SWRCB Form MBE/WBE UR334. Reports must be submitted to the Division within ten (10) calendar days
following the end of each fiscal year quarter until such time as the "Notice of Completion" is issued.
SECTION 7. TERMINATION; IMMEDIATE REPAYMENT; INTEREST.
(A) This Agreement may be terminated by written notice during construction of the Project, or
thereafter at any time prior to complete repayment by the Agency, at the option of the SWRCB,
upon violation by the Agency of any material provision of this Agreement after such violation has
been called to the attention of the Agency and after failure of the Agency to bring itself into
compliance with the provisions of this Agreement within a reasonable time as established by the
Division.
(B) In the event of such termination, the Agency agrees, upon demand, to immediately repay to the
SWRCB an amount equal to Installment Payments due hereunder, including accrued interest, and
all penalty assessments due, In the event of termination, interest shall accrue on all amounts due
at the highest legal rate of interest from the date that notice of termination is mailed to the Agency
to the date of full repayment by the Agency.
SECTION 8. DAMAGES FOR BREACH AFFECTING TAX EXEMPT STATUS.
In the event that any breach of any of the provisions of this Agreement by the Agency shall result in the
loss of tax exempt status for any state bonds, or if such breach shall result in an obligation on the part of
the State to reimburse the federal government by reason of any arbitrage profits, the Agency shall
immediately reimburse the state in an amount equal to any damages paid by or loss incurred by the state
due to such breach.
City of Redlands
Agreement No: U1-821-550-U
ISA No.: C-OG-48OO'11O
Page 3 of 5
EXHIBIT M — SWRCB SPECIAL TERMS AND CONDITIONS
SECTION 9„ DISPUTES
(A) Any dispute arising under this Agreement which is not otherwise disposed of by agreement shall
be decided by the Division Chief, or his or her authorized representative. The decision shall be
reduced to writing and a copy thereof furnished to the Agency and to the SWRCB's Executive
Director. The decision of the Division shall be final and conclusive unless, within thirty (30)
calendar days after mailing of the Division decision to the Agency, the Agency mails or otherwise
furnishes a written appeal of the decision to the SVVRCB's Executive Director_ The decision of the
SWRCB's Executive Director shall be final and conclusive unless determined by a court of
competent jurisdiction to have been fraudulent, or capricious, or arbitrary, or so grossly erroneous
as necessarily to imply bad faith, or not supported by substantial evidence. In connection with any
appeal under this clause, the Agency shall be afforded an opportunity to be heard and to offer
evidence in support of its appeal. Pending final decision of a dispute henaunder, the Agency shall
continue to fulfill and comply with all the torma, provinions, commitments, and requirements of this
Agreement.
(B) This clause does not preclude consideration of legal questionsprovided that nothing herein shall
be construed to make final the decision of the SVVRCB, or any official or representative thereof, on
any question of law.
SECTION 10. VENUE.
The SWRCB and the Agency hereby agree that any action arising out of this Agreement shall be filed and
maintained in the Superior Court in and for the County of Sacnannentu. California, or in the United States
District Court in and for the Eastern District of California.
SECTION 11. RIGHTS IN DATA.
The Agency agrees that all data, p|ans, drawings, specifications, reports, computer programs, operating
manuals, notes, and other written or graphic work produced in the performance of this Agreement are
subject to the rights of the State as set forth in this section. The State shall have the right to reproduce,
publish, and use all such work, or any part thereof, in any manner and for any purposes whatsoever and
to authorize others to do so. If any such work is copyrightablethe Agency may copyright the same,
except that, as to any work which is copyrighted by the Agency, the State reserves a royalty-free,
nonexdusiva, and irrevocable license to reproduce, pob|ioh, and use such m/ork, or any part the,eof, and
to authorize others to do so. (40 CFR 31,34. 31,36)
SECTION 12. INCOME RESTRICTIONS.
The Agency agrees that any refunds, rebates, credits, or other amounts (including any interest thereon)
accruing to or received by the Agency under this Agreement shall be paid by the Agency to the Shate, to
the extent that they are properly allocable to costs for which the Agency has been reimbursed by the State
under this Agreement.
SECTION 13. PERMITS, SUBCONTRACTING. WAI\JER, REMEDIES AND DEBARMENT.
The Agency shall procure all permits and licenses 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.
City of Redlands
Agreement No.: 01-821'550'0
ISA No.: C-OG-48OU'110
Page 4 of 5
EXHIBIT M - SWRCB SPECIAL TERMS AND CONDITIONS
Any subcontractors, outside associates, or consultants required by the Agency 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, oranarespecifioo|lymuUhohzedbythe
SVVRCBs Project Representative during the performance of this Agreement. Any substitutions in, or
additions to, such subountnscturs, asoociatss, or consultants, shall be subject to the prior written approval
of the SWRCBs Project Representative.
Any waiver of rightswithrespacttoadef ult or other matter arising under the Agreement at any time by
either party shall not be considered a waiver of rights with respect to any other default or matter.
Any rights and remedies of the State provided for in this Agreement are in addition to any other rights and
remedies provided by law.
The Agency shall not subcontract with any party who is debarred or suspended or otherwise excluded
from or ineligible for participation in federal assistance programs under Executive Order 12549,
"Debarment and Suspension" The Agency shall not subcontract with any individual or organization on
USEPA'sList ofViolating Facilities. (4OCFR, Part 31.35. Gov. Code 4477)
The Agency certifies to the best of its knowledge and belief, that it and its principals:
(A) Are not presently dnbaned, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded by any federal department or agency;
(B) Have not within a three-year period preceding this Agreement been convicted of or had a civil
judgment rendered against them for commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or
contract under a public transaction; violation of federal or state antitrust statutes or commission of
embezzlement, theft, forgmry, bribery, falsification or destruction of records, making false
stabsnnonto, or receiving stolen property;
(C) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity
(federal, state or local) with commission of any of the offenses enumerated in paragraph (1)(b) of
this certification; and
(D) Have not within a three-year period preceding this application/proposal had one or more public
transactions (federal, state or local) terminated for cause or default.
SECTION 14. CONTRACT MODIFICATIONS.
The SVVRC8 may, at any time, without notice to any sureties, by written order designated or indicated to
be a "contract mudhhcation", make any change in Exhibit A, for the work to be performed under this
Agreement so long as the modified work is within the general scope of work called for by this Agreement,
including but not limited to changes in the specifications or in the method, manner, or time of performance
of work. If the Agency intends to dispute the change, the Agency must, within ten (10) days after receipt
of a written "contract modification", submit to the SVVRCB a written statement setting forth the
disagreement with the change.
Notwithstanding the above, no modification may be made which in any way alters the provisions of Exhibit
B without formal amendment of this Agreement.
` ~
City of Redlands
Agreement No.: 01'821'550-0
ISA No: C'06-48OU'11O
Page 5 of 5
EXHIBIT M — SWRCB SPECIAL TERMS AND CONDITIONS
SECTION 15. C0[NPUTERS(]FTVVARE.
The Agency certifies that it has appropriate systems and controls in place to ensure that state funds will
not be used in the performance of this contract for the acquisition, operation or maintenance of computer
software in violation of copyright laws.
SECTION 16. COMPLIANCE WITH LAW, REGULATIONS, ETC.
(A) The Agency agrees that it will, at all times, comply with and require its contractors and
subcontractors to comply with all applicable federal and state |avvn, ru|ea, guide|ineo, regulations,
and requirements. Without limitation of the foregoing, the Agency agrees that, to the extent
applicable, the Agency will:
(1) Comply with the provisions of the adopted environmental mitigation plan for the term of
this Agreement;
(2) Comply with the SWRCB's "Policy for Implementing the State Revolving Fund for
Construction of Wastewater Treatment Facilities" August 18, 1988, as amended.
(3) Comply with and require its contractors and subcontractors on the Pject to comply with
federal minority and women-owned business enterprise (MBENVBE) requirements.
SECTION 17. SWRCB ACTION; COSTS AND ATTORNEY FEES.
The Agency 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 the SWRCB as a result of breach of this Agreement by
the Agency, whether such breach occurs before or after completion of the Project, and exercise of any
remedy provided by this Agreement by the SVVRCB shall not preclude the SWRCB from pursuing any
legal remedy or right which would otherwise be available. In the event of litigation between the parties
hereto arising from this Agreement, it is agreed that the prevailing party shall be entitled to such
reasonable costs and/or attorney fees as may be ordered by the court entertaining such litigation.