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pursuant to this Agreement are reasonable and necessary to accomplish the goals and objectives <br />of the OCWD Act. <br />2. PURPOSE. <br />2.1 Facilitation of Well #38 Treatment. OCWD and the City intend to facilitate <br />treatment for PFAS. OCWD will coordinate, design and construct a PFAS Treatment System for <br />Well #38 as directed and approved by City and subject to the provisions of this Agreement. <br />2.2 HAS Compounds and Reopener. The Parties recognize the necessity of <br />and commit to a high level of coordination to expeditiously design, construct and operate a Well <br />#38 PFAS Treatment System to remove PFAS from the groundwater where PFAS has been <br />detected. The Parties acknowledge that compounds within the HAS family in addition to PFOA <br />and PFOS may become regulated during the term of this Agreement. To the extent the Treatment <br />System developed under this Agreement requires modification to treat for additional HAS that <br />becomes regulated after the Effective Date, the Parties will, where necessary and requested by <br />City, amend this Agreement to provide for treatment of additional compounds in the PFAS family. <br />3. PLANNING. <br />3.1 Treatment Systems. With input from OCWD, City shall determine the type <br />and final design of the Treatment System to treat HAS contamination in the groundwater <br />produced by Well #38 to levels below the NL or a future MCL. If City desires, a Treatment System <br />that can remove PFAS contamination down to non -detect concentrations will be designed and <br />constructed. <br />4. DESIGN AND CONSTRUCTION OF PFAS TREATMENT FACILITIES. <br />4.1 Funding. City shall reimburse OCWD for all reasonable costs and expenses <br />incurred by OCWD to design and construct the Treatment System regardless of the Agreement <br />Effective Date. City shall reimburse OCWD within 45 days of receiving an invoice for any such <br />costs and expenses. Reimbursement from City to OCWD shall not exceed $6 million without <br />approval from the Santa Ana City Council. <br />4.2 Design Approval. City shall approve the Treatment System final design <br />and the City Public Works Director, City Engineer and Water Resources Manager shall affix their <br />signatures to the final set of contract drawings. <br />4.3 Consultant Selection. City shall be entitled to approve (1) the consultant <br />selected by OCWD to provide the final design and (2) the estimated consultant design fee. The <br />consultant selected must be currently under contract with OCWD. <br />4.4 Project Cost Estimate. OCWD and the selected design consultant shall <br />prepare a Treatment System cost estimate once 90% design drawings are approved by City. If the <br />90% cost estimate or the construction contract bid amount causes the project cost estimate to <br />exceed the reimbursement amount specified in Section 4.1, OCWD's General Manager may elect <br />to not proceed with construction until the City and OCWD agree to revised funding reimbursement <br />terms in writing. <br />2629/022499-0087 <br />[4979764.1 a08/02/21 -3- <br />