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EXHIBIT 1 <br />AMENDMENT NUMBER TWO <br />TO COOPERATIVE AGREEMENT NO. A-2016-092 <br />BETWEEN THE CITY OF SANTA ANA AND THE CITY OF COSTA MESA <br />FOR THE CONSTRUCTION OF THE SANTA ANA DELHI DIVERSION <br />FORCED SEWER MAIN UNDER BRISTOL STREET FROM <br />BAKER STREET TO NEWPORT BOULEVARD <br />This Amendment Number Two ("Amendment") is made and entered into this 3rd day of <br />September, 2019 ("Effective Date"), by and between the CITY OF COSTA MESA, a municipal <br />corporation ("COSTA MESA"), and the CITY OF SANTA ANA, a municipal corporation ("SANTA <br />ANA"). <br />RECITALS: <br />A. COSTA MESA and SANTA ANA entered into Cooperative Agreement No. A-2016-092 <br />("Agreement") on May 18, 2016 for the construction of the Santa Ana Delhi diversion <br />forced sewer main pipeline under Bristol Street from Baker Street to Newport Boulevard <br />(the "Project"); and <br />B. Pursuant to the Agreement, SANTA ANA committed to contribute $1,100,000.00 toward <br />the Project; and <br />C. Due to delays caused by the requirement that the cities obtain Caltrans encroachment <br />permits in connection with the Project, COSTA MESA removed the installation of the <br />diversion sewer main pipelines within the Caltrans right-of-way from the scope of work on <br />COSTA MESA's Bristol Street Median Project, which postponed the installation of the <br />forced sewer main pipeline; and <br />D. COSTA MESA and SANTA ANA have now secured the required encroachment permits <br />from Caltrans, and COSTA MESA has awarded a construction contract to Gwinco <br />Incorporated for Phase II of COSTA MESA's Santa Ana Delhi Channel Diversion Pipeline <br />Project, which includes installation of the forced sewer main pipeline; and <br />E. The cost to install the forced sewer main pipeline exceeds the amount initially <br />contemplated by approximately One Hundred Forty -Eight Thousand Five Hundred Dollars <br />($148,500.00); and <br />F. SANTA ANA has agreed to reimburse COSTA MESA One Hundred Forty -Eight Thousand <br />Five Hundred Dollars ($148,500.00) for such cost; <br />G. SANTA ANA and COSTA MESA desire to amend the Agreement accordingly. <br />NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is <br />hereby acknowledged, the parties agree as follows: <br />Rev. 11-16 <br />A new subsection 4 shall be added to Section B as follows: <br />4. In addition to the Advanced Expended Funds set forth herein, SANTA ANA <br />agrees to reimburse COSTA MESA up to One Hundred Forty -Eight Thousand <br />Five Hundred Dollars ($148,500.00) for costs associated with the installation <br />Cooperative Agreement No. A-2016-092 <br />Amendment Two <br />25E-3 <br />