MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (3) - 2004

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. . / . SECTION 1. TERM. The tenn of this Contract shall commence as of the Effective Date, and shall expire concurrently with the MWD Agreement, subject to earlier termination as set forth in this Contract or the MWD Agreement. SECTION }, OBLIGATIONS OF THE PROGRAM AGENCY. 2. I. fulfillment of the Tenns and Conditions of the MWD A2reement. Pursuant to this Contract, the Program Agency shall fulfiIl the terms of the MWD Agreement, including but not limited to those obligations set forth in Section VI.B. ("Program Agency Obligations") of the MWD Agreement. Program Agency represents and warrants that nothing in this Agreement is inconsistent with Section IX.A.9 of thc MWD Agreement and Program Agency will indemnify, defcnd, and hold the Operating Party harmless against any and all claims regarding any alleged inconsistencies. 2.2. Rolc as Lead Al!encY and in Coordination of Work. The Program Agency shall act as thc lead agency to design, and construct the Program Wells, the location of which are provided on Attachment "B." 2.3. Desil!ß and Construction. In its design and construction of the Program Wells, the Program Agency shall cooperate with the Operating Party and make reasonable efforts to rneet the specific operational needs and requirements of the Operating Party. The program wells construction plans and specifications will incorporate all mitigation requirements arising out of processing necessary CEQA documents for the program wells. All construction plans and specifications shall be reviewed and approved by the Operating Party prior to bid advertisement. All contracts let for the Program Wells construction shall be let by competitive bid procedures that assure award of the contract to the lowest responsible bidder, except as may be otherwise authorized under the enabling authority for the Program Agency and/or the California Public Contract Code, and in accordance with the MWD Agreement. Program Agency shall be responsible for ensuring that construction of the Program Wells are completed in accordance with Section IV.BA. of the MWD Agreement, not later than March 8, 2008. Upon completion of the Program Wells, the Program Agency shall transmit a written notice of completion to the Member Agency and the Operating Party ("Notice of Completion"). Member Agency and Operating Party shall be named as additional insureds on all insurance policies required to be carried (I) the Program Agency and (2) all contractors, subcontractors, consultants, and others hired by Program Agency pursuant to this Contract. All such policies shall be primary and non- contributing with any insurance carried by the Operating Party. 204. Payment of the Costs of Construction. The Program Agency shall provide for the payment of the costs of constructing the Program Wells and any other related facilities ITOm funds received ITOm MWD in accordance with the MWD Agreement. Member Agency and Operating Party shall have no responsibility for any costs of constructing the Program Wells, and other Program Facilities. In the event that Operating Party requests and funds the construction of additional facilities pursuant to the provisions of Paragraph 4.11 Program Agency's consent shall not be unreasonably withheld. Upon completion of construction and placing the Program Wells into service, the Program Agency shall be responsible for the repair or replacement of any equipment found to be defective. '[ \1 .-V "