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payments, and perform all other activities required to satisfy the financial responsibilities of their respective Party in accordance with the terms herein. 1.9 Each Party and their respective Project Representative acknowledge that the Project is made possible by virtue of certain Grants and agrees to make every effort to assist and cooperate with SANTA ANA, the Grant Administrator, for the Project to remain in full compliance with the terms of the Grant. 1.10 The Parties agree that JWA and/or Golf Lessee will be compensated for any unmitigated negative impacts to the Golf Course and /or Golf Lessee operations caused by the Project construction or operation only if actual losses or damages are incurred and substantiated. Costs associated with this obligation are Project Cost estimates in Exhibit C3. SECTION 2 RESPONSIBILITIES OF SANTA ANA 2.1 General Responsibilities SANTA ANA shall be responsible for the design, environmental review, obtaining all required Resource Agency approvals, CPP, permits and easements, and construction of the Facilities developed for the Project under the terms of this Agreement. SANTA ANA shall deposit amounts paid by the Parties for Project design and /or construction into a separate account designated for such funds as the Project Fund. Within forty (40) days of the execution of this Agreement, SANTA ANA shall deposit a lmnp sum amount for design, construction, and the annual O &M costs as established per Exhibit C3, into the Project Fund Account. The Grant funds shall be paid to the Project Fund on a reimbursement basis pursuant the terms and conditions of said grant. 2.2 Environmental Review / Permitting 2.2.1 SANTA ANA shall be the lead agency for purposes of CEQA, prepare the necessary environmental documents and secure all necessary resource agency permits for the Project. SANTA ANA shall secure the rights -of -way for the Project, including any needed for the O &M of the Diversion Structure and all Facilities. 2.2.2 SANTA ANA shall obtain the prior written approval from the Project Representative(s) of any Party with jurisdiction and /or property rights to any permit concerning said property which potentially includes post - construction agreements, obligations or conditions (e.g., mitigation requirements) imposed by any governmental or regulatory agency. 2.2.3 SANTA ANA shall apply for permits and maintain Project compliance with all permits, regulations and laws. As referenced in Recital Q, the development of the Project contemplated statewide trash amendments by the State of California Water Control Board currently approved "Amendment to the Water Quality Control Plan for the Ocean Waters of California to Control Trash and Part 1 Trash Provisions of the Water Quality Control Plan for Inland Surface Waters, Enclosed Bays, and Estuaries of California." SANTA ANA shall, if the Project Representatives mutually determine it is necessary, change the Project procedures as to its implementation, Santa Ana -Delhi Channel Diversion Project Agreement D15 -013 25G -16 Page 12 of 74