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11. State agrees that the Supplier's usual connection fees associated with <br />providing water to those properties in the Catalina Street Pump Owners <br />Association service area whose owners apply for water service from the <br />Supplier not later than 60 days following the installation of laterals and meters <br />to connect each property to the Supplier shall be deemed eligible for <br />reimbursement. <br />V. Special Conditions to be included in the Funding Agreement <br />1. The Supplier shall notify the State's Santa Ana District Office when the project <br />construction is 50% complete. <br />Note: Pursuant to Government Code Section 8546.7, the contracting parties shall be <br />subject to the examination and audit of the State or any agent thereof, and the <br />State Auditor. <br />All correspondence with the State, shall be submitted to: <br />California Department of Public Health <br />Division of Drinking Water and Environmental Management <br />Proposition 84 Program <br />P.O. Box 997377, MS 7408 <br />Sacramento, CA 95899-7377 <br />Supplier's signature below indicates Supplier's acceptance of these terms and <br />conditions and Supplier's intention to proceed with the project. It does not constitute <br />any obligation on Supplier's part to enter into the grant funding agreement. Failure to <br />sign and return this LOC within the time period specified will result in the <br />withdrawal of the reservation of funds and the bypass, of this Project. <br />In order to maintain the reservation of funds in the Proposition 84 accountfor this <br />Project, Supplier must sign this LOC at the space provided below and return it <br />within 30 days of receipt to the State. <br />City of Santa Ana <br />P84C-3000662-003C <br />Page 4 of 5 <br />55B-13