ORANGE COUNTY WATER DISTRICT (2)

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G. Warranty, Post -Construction Remedies. OCWD shall make construction warranty repairs and modifications not attributable to the negligence or willful misconduct of City for one year after the date of filing of the Treatment System Notice of Completion. The Parties will also, to the extent they deem prudent, jointly pursue any statutory construction defect remedies against third -party designers and contractors. H. DDW Permit Assistance. OCWD will support and assist the City with technical information in modifying the City's DDW operating permit to account for and authorize the new Treatment System as part of the City's public water system. 5. FINANCIAL. 5.1 Records Retention, Audit. The Parties shall keep and maintain all records, accounts and reports relating to this Agreement for a period of at least 3 years after notice of completion of project is filed. The Parties will have access to these records at any time during normal business hours upon 10 calendar days' notice. At its cost, any Party may audit the books, records and accounts of the Party relating to its performance of this Agreement, and the audited Party shall provide reasonable cooperation to the auditing Party in this regard. 6. RISK ALLOCATION. 6.1 Insurance. A. Construction Activities. In the hiring of consultants and contractors to design and build the Treatment System, OCWD shall have the City included as an additional indemnitee and additional insured on the same basis and with the same limits in all contracts. OCWD shall provide the City with proof of insurance, including additional insured endorsements. B. City's Coverage. City shall take out and maintain in effect at all times during the operation of the Treatment System comprehensive general liability insurance in an amount not less than $2 million per occurrence, for bodily injury, death and property damage associated with the operation and maintenance of the Treatment Facilities and Impacted Wells, naming OCWD as an additional insured under such policy. An endorsement evidencing this insurance coverage shall be furnished to OCWD prior to OCWD commencing construction on a Treatment System. If the City is, or becomes, partially or fully self -insured for its public liabilities, a letter executed by the City's Chief Executive stating the City's self -insured status and acknowledging its responsibility to indemnify OCWD as required in this Agreement, may be furnished in lieu of the insurance endorsement otherwise required herein. The City shall provide written notice to OCWD of any change in the City's insured or self -insured status within 30 days of the date of such change. 6.2 Indemnity. A. By City: (1) City shall defend, indemnify and hold OCWD, harmless from and against any and all actions, suits, claims, demands, judgments, attorney's fees, costs, damages to person or property, losses, penalties, obligations, expenses or liabilities (collectively, 2629/0224994087 14979764.1 a08/02/21 -5-