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ATTACHMENT Contract Award for Westminster Avenue Sewer Improvements June 17, 2013 Exhibit 2 WESTMINSTER AVENUE SEWER PROJECT CONSTRUCTION AND REIMBURSEMENT AGREEMENT This WESTMINSTER AVENUE SEWER PROJECT CONSTRUCTION AND REIMBURSEMENT AGREEMENT (this "Agreement ") is made and entered into by and between the Garden Grove Sanitary District, a subsidiary district of the City of Garden Grove ( "District "), and the City of Santa Ana, a municipal corporation ( "City "). District and City are sometimes individually referred to as each "Party" and collectively referred to as the "Parties" RECITALS A. City and District jointly use and share capacity rights in certain sewerage facilities located in Westminster Avenue, which shared sewerage facilities are owned, operated and maintained by each Party within its respective territorial jurisdiction, all in accordance with that certain Agreement for Joint Use of Sewerage Facilities in effect between the Parties. B. In order to mitigate the risk of sanitary sewer overflows and to provide adequate peak flow capacity in these shared sewers, the Parties have determined that it is necessary to construct new sewerage facilities in Westminster Avenue between Harbor Boulevard and Nancy Lane to transport wastewater at the estimated ultimate capacity of both the City and District. The design and construction of these new shared sewerage facilities is referred to in this Agreement as the "Westminster Avenue Sewer Project " C. The new shared sewerage facilities to be constructed pursuant to the Westminster Avenue Sewer Project will be located in portions of both City's and District's territorial jurisdictions. Notwithstanding the provisions of the for Joint Use of Sewerage Facilities providing for each Party to be responsible for the design and construction of new and replacement shared sewer facilities within each Party's respective jurisdiction, City and District have determined it is in the best interests of both parties for City to design and construct the entire Westminster Avenue Sewer Project and for District to reimburse City for District's fair share proportionate cost of such design and construction, D. City has prepared, and District has reviewed and approved, the plans and specifications for construction of the Westminster Avenue Sewer Project (referred to internally by City as "Project No. 12 -6605 Westminster Avenue Sewer Main Improvements "), which plans and specifications incorporated into this Agreement by reference ( "the Plans and Specifications "), E. The Parties' respective fair share proportion of the cost of the Westminster Avenue Sewer Project is based on the Parties' respective estimated ultimate average flows from the areas tributary to the segments of the shared sewers to be constructed as part of the Westminster Avenue Sewer Project, which tributary areas are depicted on Exhibit "A" attached hereto, and which flows are prorated as calculated and shown on Exhibit "B" attached hereto. The estimated total final cost of the Westminster Avenue Sewer Project, including engineering and construction costs is One Million Five Hundred Twenty Thousand 912756.1 Exhibit 2