20C - AA - DELHI CHANNEL PROJ - Laserfiche WebLink

Home Browse Search

3,7.9 Reserve Fund After exhaustion of the Initial O&M Deposit, a portion of the O&M fund may be deposited and designated as the Reserve Fund which is to be used to repair or replace the Facilities, Project - related Channel improvements and/or appurtenances, or portions thereof, damaged due to a catastrophic event (e.g. a severe storm, seismic activity, or fire). . COSTA MESA may utilize Reserve Funds for the portions of the Facilities it shall own and maintain by having their Project Representative send a written request with supporting documentation to the Director that specifies use of funds consistent with Reserve Fund purposes. The Director shall provide Reserve Fund account statements with the annual O&M Fund reporting. Additional Annual O&M Costs contributions from the Parties, in accordance with the terms herein, are to be, used to replenish the O&M Fund and Reserve Fund. . 3.7. 10 Additional Annual O&M Costs A Patty's proportionate share obligation to fund Additional Annual 0&M Costs are to be paid as indicated on Exhibit C2 to OCFCD on, or before January I' of each year, or as otherwise established in writing by the Patties. OCWD and IRWD shall not have any obligation to fund Additional O&M Costs. OCFCD shall pay costs out of its O&M Fund as they become due and in accordance with the terms of this Agreement. 3.7.11 After exhaustion of the Initial O&M Deposit, OCFCD/COUNTY agree to contribute to long term O&M costs per its joint proportionate share as specified in Exhibit C2. 3,7.12 Records OCFCD shall maintain a complete set of records and accounts of all O&M Costs, maintenance activities and schedules in accordance with generally accepted accounting principles. Upon reasonable notice, OCFCD shall permit a Party or Parties' Project Representatives to inspect and audit all work, materials, payroll, books, accounts, and other data and records of OCFCD. Project Representatives shall also have the right to reproduce any such books, records, and accounts. The above provisions with respect to audits shall extend to and/or be included in contracts with OCFCD'S contractors. Costs incurred pursuant to this section are to be paid by the Party or Parties initiating any inspection or audit. 3.7.13 O&M Cost Annual Report OCFCD shall provide Sponsors an annual report of O&M Account transactions; that includes, O&M Costs, the O&M Fund of OCFCD and any Reserve Fund maintained by OCFCD. Should the Initial O&M Deposit be depleted to less than $400,000 by the end of the fifth year of Facility operations, OCFCD shall so notify all Project Representatives who may meet and confer to evaluate if changes in O&M and fiscal strategies should be implemented, and to ensure enough funds by the Sponsors are available for OCFCD and COSTA MESA to satisfy their respective O&M responsibilities. Santa Ana -Delhi Channel Diversion Project Agreement D15-013 Page 22 of 69 20C-28