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COOPERATIVE AGREEMENT BETWEEN THE CITY OF SANTA <br />ANA AND THE CITY OF COSTA MESA FOR THE <br />CONSTRUCTION OF THE SANTA ANA DELHI DIVERSION <br />FORCED SEWER MAIN UNDER BRISTOL STREET FROM <br />BAKER TO NEWPORT BEACH BOULVARD <br />This cooperative agreement ( "Agreement ") is made and entered into this day of <br />' 2016, by and between the CITY OF COSTA MESA, a municipal <br />corporation ( "COSTA MESA "), and the CITY OF SANTA ANA, a municipal corporation <br />( "SANTA ANA "). <br />RECITALS: <br />A. WHEREAS, the City of Santa Ana, Orange County Flood Control District, the County of <br />Orange, the City of Newport Beach, the City of Costa Mesa, and the Irvine Ranch Water <br />District are all parties to a separate agreement for the construction, maintenance, and <br />operation of the Santa Ana Delhi - Diversion Channel Project ( "Diversion Channel <br />Project"); which is a collaborative effort to address regional water quality issues, and <br />B. WHEREAS, one aspect of the Diversion Channel Project's proposed plan is to install, <br />operate, and maintain forced sewer main pipelines within public street right- of-way of <br />COSTA MESA, and <br />C. WHEREAS, COSTA MESA agreed to contribute to the Diversion Channel Project a lump <br />sum amount of $600,000; and <br />D. WHEREAS, in a separate and different project to begin before construction of the <br />Diversion Channel Project, COSTA MESA will hire its own contractor to perform certain <br />work in the median on Bristol Street within the city of COSTA MESA (`Bristol Street <br />Median Project "), and <br />E, WHEREAS, to benefit the Diversion Channel Project in terms of time and cost savings, <br />COSTA MESA is agreeable to having its contractor for the Bristol Street Median Project, <br />perform that portion of the Diversion Channel Project which calls for forced sewer main <br />pipelines to be installed within Bristol Street between Balser Street to Newport Boulevard; <br />as shown in Exhibit A, and <br />F. WHEREAS, COSTA MESA desires, therefore, that COSTA MESA'S lump sum financial <br />obligation to the Diversion Channel Project be offset by the cost of work performed by its <br />contractor on the Bristol Street Median Project related to installing the forced sewer main <br />pipeline, and <br />G. WHEREAS, SANTA ANA is agreeable to advancing to COSTA MESA the funds required <br />to cover the costs incurred by COSTA MESA to pay its contractor on the Bristol Street <br />Median Project to install the forced sewer main pipeline ( "Advanced Expended Funds "); <br />Page 1 of 12 <br />Exhibit 2 <br />20B -41 <br />