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City of Santa Ana
<br />Agreement No.: D2202006
<br />Project No.: 3010038-002C
<br />Page 17 of 49
<br />(a) The Recipient's failure to maintain reasonable progress on the Project as determined by the
<br />Division;
<br />(b) Placement on the ballot or passage of an initiative or referendum to repeal or reduce the
<br />Recipient's taxes, assessments, fees, or charges levied for operation of the System or
<br />payment of debt service on System Obligations;
<br />(c) Commencement of litigation or a judicial or administrative proceeding related to the Project,
<br />System, or Revenues that the State Water Board determines may impair the timely
<br />satisfaction of Recipient's obligations under this Agreement;
<br />(d) Any investigation by the State Water Board, District Attorney, California State Auditor, Bureau
<br />of State Audits, United States Environmental Protection Agency's Office of Inspector General,
<br />the Internal Revenue Service, Securities and Exchange Commission, a grand jury, or any
<br />other state or federal agency, relating to the Recipient's financial management, accounting
<br />procedures, or internal fiscal controls;
<br />(e) A material adverse change in the condition of the Recipient, the Revenues, or the System,
<br />that the Division reasonably determines would materially impair the Recipient's ability to
<br />satisfy its obligations under this Agreement, or any other event that the Division reasonably
<br />determines would materially impair the Recipient's ability to satisfy its obligations under this
<br />Agreement;
<br />(f) The Recipient's material violation of, or threat to materially violate, any term of this
<br />Agreement;
<br />(g) Suspicion of fraud, forgery, embezzlement, theft, or any other misuse of public funds by the
<br />Recipient or its employees, or by its contractors or agents regarding the Project or the
<br />System;
<br />(h) An event requiring Notice as set forth in Exhibit C;
<br />(i) An Event of Default or an event that the Division determines may become an Event of
<br />Default.
<br />B.1.9 Fraud and Misuse of Public Funds; Enforcement.
<br />All requests for reimbursement submitted must be accurate and signed by the Recipient's Authorized
<br />Representative under penalty of perjury. All costs submitted pursuant to this Agreement must only be for
<br />the work or tasks set forth in this Agreement. The Recipient must not submit any invoice containing costs
<br />that are ineligible or have been reimbursed from other funding sources unless required and specifically
<br />noted as such (i.e., match costs). Any eligible costs for which the Recipient is seeking reimbursement
<br />shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other
<br />eligible cost is improper and will not be compensated. Any suspected occurrences of fraud, forgery,
<br />embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements and,
<br />notwithstanding any other section in this Agreement, the termination of this Agreement requiring the
<br />repayment of all Project Funds disbursed hereunder. Additionally, the Deputy Director of the Division
<br />may request an audit; refer the matter for appropriate administrative action, including but not
<br />limited to the recovery of financial assistance provided and the imposition of civil penalties;
<br />and/or refer the matter to the Attorney General's Office or the appropriate district attorney's office for
<br />criminal prosecution or the imposition of civil liability. A person who knowingly makes or causes to be
<br />made any false statement, material misrepresentation, or false certification in any submittal may be
<br />subject to a civil penalty, criminal fine, or imprisonment. (Wat. Code, § 13490 et seq.)
<br />B.2 RECIPIENT'S PAYMENT OBLIGATION, PLEDGE, AND RESERVE
<br />B.2.1 Project Costs.
<br />The Recipient must pay any and all costs connected with the Project including, without limitation, any and
<br />all Project Costs and Additional Payments. If the Project Funds are not sufficient to pay the Project Costs
<br />in full, the Recipient must nonetheless complete the Project and pay that portion of the Project Costs in
<br />Exhibit B
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