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EXHIBIT 3 <br />REIMBURSEMENT AGREEMENT <br />BETWEEN <br />THE COUNTY OF ORANGE <br />AND <br />THE CITY OF SANTA ANA <br />Agreement D 12-030 <br />THIS REIMBURSEMENT AGREEMENT, numbered D 12-030, is made and <br />entered into this day of , 2012 by and between the County of <br />Orange, hereinafter referred to as the "COUNTY", and the City of Santa Ana, hereinafter <br />referred to as "CITY". <br />RECITALS: <br />A. The United States Environmental Protection Agency (USEPA) has established <br />TMDLs for toxic pollutants in San Diego Creek and Newport Bay, California on <br />June 14, 2002, and the California Regional Water Quality Control Board is <br />developing implementation plans for each of the toxic pollutants; and <br />B. The COUNTY, the CITY, the Orange County Flood Control District, the City of <br />Costa Mesa, the City of Irvine, the City of Laguna Hills, the City of Laguna <br />Woods, the City of Lake Forest, the City of Newport Beach, the City of Orange, <br />the City of Tustin, the Irvine Ranch Water District, The Irvine Company, and <br />Lennar Homes of California, have entered into have entered into Agreement No. <br />D99-128, dated July 1, 2010, for the purpose of funding and performing studies, <br />research, monitoring and the development and implementation of programs <br />related to the adopted TMDLs for nutrients, fecal coliform and toxics in the San <br />Diego Creek and Newport Bay watersheds (hereinafter "said Agreement"); and <br />C. Said Agreement provides that the COUNTY will annually develop a scope of <br />work and budget containing an estimate of planned expenditures for the following <br />fiscal year, which shall be submitted to the parties for approval; and <br />D. The approved scope of work and budget for fiscal year 2011-2012 includes the <br />evaluation of alternatives to the Cienega project, to comply with the selenium <br />TMDL compliance requirements, including source control of selenium Hot Spots <br />and construction of low-flow diversion to the sanitary sewer system. <br />WHEREFORE, in consideration of the mutual and respective covenants and promises, <br />and subject to all the terms and conditions hereinafter set forth, the parties hereto agree as <br />follows: <br />1. OBLIGATIONS OF CITY <br />a. CITY shall select and pay a consultant to develop a feasibility report for the <br />identification of alternative locations, design, implementation and operation of <br />stormwater/sanitary sewer diversion facilities to capture dry-weather selenium <br />25A-28