WATER DISTRICT, ORANGE COUNTY (Green Acres Project Water) - 1988

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7.4 Metropolitan shall have the right to audit all Project costs and other data relevant to the terms of this Agreement for a period of three years following the termination of this Agreement. M Agreement may elect to have such audits conducted by its staff or by others, including independent accountants, as designated by Metropolitan. OCWD shall make available for inspection to Metropolitan or its designee, upon 30 days advance notice, all records, books and other documents, including all billings and costs incurred by contractors, relating to the construction, operation and maintenance of the Project; any grants and contributions, as described in Exhibits B, C, and D; and capital cost financing. Upon 30 days advance notice and at Metropolitan's request, OCWD shall also allow Metropolitan's personnel or its designee to accompany OCWD staff in inspecting OCWD's contractors' records and books for the purpose of conducting such audits of Project costs. 7.5 In lieu of conducting its own audit(s), Metropolitan shall have the right to direct the OCWD to have an independent audit conducted of all Project costs incurred in any Fiscal Year(s) pursuant to this Agreement. OCWD shall then have an audit performed for said Fiscal Year(s) by an independent certified public accounting firm and provide - Metropolitan copies of the audit report within six months after the date the audit was requested. The cost of any independent audit performed under this Agreement shall be paid by OCWD and is an allowable Project operation and maintenance cost pursuant to Exhibit C. Based on the results of any independent audit, an adjustment for over- or under-payment of Allowable Yield for each applicable Fiscal Year shall be paid by Metropolitan or OCWD within one year of determination after such adjustment. 7.6 OCWD shall keep all Project records for at least three years following the termination of this Agreement. Section 8: Term and Amendments 8,1 The Agreement shall commence at 12:01 AM. on July 1, 1999 and terminate on October 31, 2016, subject to provisions outlined in Exhibit F. The JPA as amended shall terminate at 12:00 midnight on June 30, 1999. The provisions regarding reconciliation and audit shall remain in effect until three years after the termination of the Agreement. 8.2 This Agreement may be amended at any time by the written mutual agreement executed by each of the Parties, 8.3 In addition to the automatic termination provided for in Section 5. 1, Metropolitan may terminate this Agreement due to any other material breach of this Agreement by any Party other than Metropolitan, upon thirty (30) days notice to other Parties. Metropolitan shall notify OCWD of any other material breach and OCWD shall have 30 days to address and rectify the breach. Only in the event of failure to rectify the breach shall Metropolitan terminate the Agreement. Agreement 22156 -8-