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Supplier's Name <br />Funding Agreement No. 84 <br />Page 3 of 20 <br />Supplier shall not award a contract until a summary of bids and identification of <br />the lowest responsible bidder are submitted to State. A full explanation must be <br />provided if Supplier is proposing to award a contract to anyone other than the lowest <br />responsible bidder. <br />SECTION 7. REQUIREMENTS FOR DISBURSEMENT <br />Not later than sixty (60) days following Date of Execution of this Agreement, <br />Supplier shall satisfy all conditions precedent to the disbursement of funds under this <br />Agreement, including Basic Conditions Precedent asset forth in Article A-3 of the <br />Standard Conditions. Failure by Supplier to satisfy said conditions and requirements by <br />this date.may, at the option of State, result in cancellation of this Agreement under <br />Article A-7 of the Standard Conditions and/or declaration that Supplier is in default <br />pursuant to Article A-24 of the Standard Conditions. <br />SECTION 8. SPECIAL TERMS AND CONDITIONS <br />Supplier shall satisfy the special terms and conditions set forth in Exhibit B. <br />Failure by Supplier to timely satisfy the special terms and conditions may, at the option <br />of State, result in cancellation of this Agreement under Article A-7 of the Standard <br />Conditions, and/or declaration that Supplier is in default pursuant to Article A-24 of the <br />Standard Conditions. <br />SECTION 9. OPERATION AND MAINTENANCE OF PROJECT <br />Upon project completion, and for a period of years, which is the reasonably <br />expected useful life of the Project, Supplier shall, as further consideration for this <br />funding, commence and continue operation of the Project; cause the Project to be <br />operated in an efficient and economical manner; provide for the making of all repairs, <br />renewals, and replacements necessary for the effective operation of the Project; and <br />cause the Project to be maintained in as good of condition as upon its construction, <br />ordinary and reasonable wear and depreciation excepted. Failure by Supplier to <br />operate and maintain the Project in accordance with this provision may, at the option of <br />State, be considered a material breach of Agreement and may be treated as a default <br />under Article A-24 of the Standard Conditions. - <br />SECTION 10. PROJECT OFFICIALS AND NOTICES <br />State's Grant Administrator shall be the Chief, Drinking Water Infrastructure <br />Financing Section, Division of Drinking Water and Environmental Management, <br />California Department of Public Health. All communications given to State's Grant <br />Administrator shall be deemed given to State. <br />State's Grant Administrator shall be State's representative for administration of <br />this Agreement, and shall have authority to make recommendations and findings with <br />respect to each controversy arising under or in connection with this Agreement. All <br />55B-21