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IV. General Requirements <br />1. Supplier must use a competitive bid process for the construction of the <br />project. The bid summary must be submitted to the State's Santa Ana District <br />Office for review and approval 2rior to the awarding of the prime construction <br />contract. <br />2. If any materials submitted to satisfy the conditions of the LOG are deemed <br />inadequate, Supplier must submit additional information as specified, and <br />within the timeframe designated by the State. <br />3. Supplier must initiate construction of the project within one (1) year of the <br />Date of Execution of the funding agreement. <br />4. Supplier must complete construction of the project within three (3) years of <br />the Date of Execution of the funding agreement. <br />5. Supplier may request a one-time increase in funding following the Date of <br />Execution of the funding agreement. The request must be based upon costs <br />received from competitive bids and shall be submitted to the State for review <br />and approval. Approval of the Supplier's request may be granted or denied at <br />the sole discretion of the State and is subject to the availability of funds. <br />6. All disbursements for construction costs may be subject to a ten percent <br />(10%) retention on each claim until completion of the project as specified in <br />the funding agreement. <br />7. Supplier may be reimbursed only for such project costs consisting of eligible <br />construction expenses incurred on or after the date of this LOC, and eligible <br />preliminary expenses incurred after November 7, 2006. <br />8. No funds will be disbursed until the funding agreement has been executed. <br />9. Supplier shall comply with Public Resources Code Section 75075 regarding <br />Labor Compliance Programs. <br />10. Supplier acknowledges the importance to public health and safety of assuring <br />that, upon completion of the Project, no person or entity be able to obtain its <br />domestic water supply from the well located on APN 099-211-06 commonly <br />described as 5217 W-Roosevelt Avenue, Santa Ana, CA 92703 (Well) and <br />currently serving the Catalina Street Pump Owners Association service area; <br />and Supplier expressly agrees to destroy or cause to be destroyed the Well <br />not later than 3 years following the Date of Execution of the funding <br />agreement in order for the well destruction costs to be deemed eligible for <br />reimbursement. Supplier shall submit a copy of the Well destruction permit to <br />the State's Santa Ana District Office. <br />City of Santa Ana <br />P84C-3000662-003C <br />Page 3 of 5 <br />55B-12