Fowler City Council
October 6, 2026

STATE OF CALIFORNIA

CALIFORNIA NATURAL RESOURCES AGENCY

DEPARTMENT OF WATER RESOURCES
AGREEMENT NUMBER: 4600015027

FUNDING AGREEMENT BETWEEN THE STATE OF CALIFORNIA

DEPARTMENT OF WATER RESOURCES
AND

CITY OF FOWLER

FOR THE

CITY OF FOWLER DROUGHT RESILIENCY PROJECT

A PART OF THE SMALL COMMUNITY DROUGHT RELIEF PROGRAM

FUNDED BY
THE BUDGET ACT OF 2021 AS AMENDED
(STATS. 2022, ch. 44, § 25)
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Grant Agreement No. 4600015027

FUNDING AGREEMENT BETWEEN

THE STATE OF CALIFORNIA (DEPARTMENT OF WATER RESOURCES) AND

CITY OF FOWLER
4600015027

SMALL COMMUNITY DROUGHT RELIEF PROGRAM
THIS FUNDING AGREEMENT is entered into by and between the Department of Water Resources of the State of California, herein referred to as the "State" or “DWR” and the City of Fowler, a public agency in the State of California, duly organized, existing, and acting pursuant to the laws thereof, herein referred to as the "Grantee," which parties do hereby agree as follows:

1. PURPOSE. State shall provide funding pursuant to the Budget Act of 2021, as amended (Stats. 2022, ch. 44, § 25), to the Grantee to assist in financing the City of Fowler Drought Resiliency Project (Project). By executing this Agreement, the Grantee certifies that the purpose of the Project is in response to a drought scenario, as defined by Water Code section 13198(a) and is intended to: (1) address immediate impacts on human health and safety; (2) address immediate impacts on fish and wildlife resources; or, (3) provide water to persons or communities that lose or are threatened with the loss or contamination of water supplies.

2. TERM OF FUNDING AGREEMENT. The term of this Funding Agreement begins on the date this Funding Agreement is initially executed by State, through final payment plus three (3) years unless otherwise terminated or amended as provided in this Agreement. However, all work shall be completed by December 31, 2024, and no funds may be requested after March 31, 2025.

3. PROJECT COST. The reasonable cost of the Project is estimated to be $2,073,450.

4. FUNDING AMOUNT. The maximum amount payable by the State under this Agreement shall not exceed $2,073,450.

5. GRANTEE REQUIRED COST SHARE. Grantee agrees to fund the difference between the actual Project Cost in Paragraph 3 and the amount specified in Paragraph 4, if any.

6. BASIC CONDITIONS. State shall have no obligation to disburse money for the Project under this Funding Agreement until Grantee has satisfied the following conditions:

A. For the term of this Funding Agreement, Grantee submits timely Quarterly Progress Reports as required by Paragraph 13, “Submission of Reports.”
B. Grantee submits all deliverables as specified in Paragraph 13 of this Funding Agreement and in Exhibit A.

C.Prior to the commencement of construction or implementation activities, Grantee shall submit the following to the State:
i. Final plans and specifications certified by a California Registered Civil Engineer as to compliance for the Project as listed in Exhibit A of this Funding Agreement. ii. Work that is subject to the California Environmental Quality Act (CEQA) and or environmental permitting shall not proceed under this Funding Agreement until the following actions are performed:
a. Grantee submits to the State all applicable environmental permits as indicated on the Environmental Information Form to the State, and
b. Documents that satisfy the CEQA process are received by the State, and DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 400
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c. Grantee receives written concurrence from the State of the Lead Agency’s CEQA document(s) and State notice of verification of environmental permit submittal.

State’s concurrence of Lead Agency’s CEQA documents is fully discretionary and shall constitute a condition precedent to any work (i.e., construction or implementation activities) for which it is required. Once CEQA documentation has been completed, State will consider the environmental documents and decide whether to continue to fund the Project or to require changes, alterations, or other mitigation. Grantee must also demonstrate that it has complied with all applicable requirements of the National Environmental Policy Act (NEPA) by submitting copies of any environmental documents, including environmental impact statements, Finding of No Significant Impact, mitigation monitoring programs, and environmental permits as may be required prior to beginning construction/implementation.

7. DISBURSEMENT OF FUNDS. State will disburse to Grantee the amount approved, subject to the availability of funds through normal State processes. Notwithstanding any other provision of this Funding Agreement, no disbursement shall be required at any time or in any manner which is in violation of, or in conflict with, federal or state laws, rules, or regulations pursuant to any federal statute or regulation. Any and all money disbursed to Grantee under this Funding Agreement shall be deposited in a separate account and shall be used solely to pay Eligible Project Costs.

8. ELIGIBLE PROJECT COST. Grantee shall apply State funds received only to Eligible Project Costs in accordance with applicable provisions of the law and Exhibit B. Eligible Project Costs include the reasonable costs of studies, engineering, design, land and easement acquisition, legal fees, preparation of environmental documentation, environmental mitigations, monitoring, and project construction. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project included in this Agreement. Work performed on the Project after April 29, 2022, shall be eligible for reimbursement.

Costs that are not eligible for reimbursement include, but are not limited to the following items:

A. Costs incurred prior to April 29, 2022.

B. Operation and maintenance costs, including post-construction performance and monitoring costs.

C. Purchase of equipment not an integral part of the Project.

D. Establishing a reserve fund.

E. Monitoring and assessment costs for efforts required after Project construction is complete.

F. Replacement of existing funding sources for ongoing programs.

G. Payment of federal or state taxes.

H. Costs incurred as part of any necessary response and cleanup activities required under the Comprehensive Environmental Response, Compensation, and Liability Act; Resource Conservation and Recovery Act; Hazardous Substances Account Act; or other applicable law.

I. Support of existing agency requirements and mandates (e.g., punitive regulatory agency requirement).

J. Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of a project, as set forth and detailed by engineering and feasibility studies, or land purchased prior to April 29, 2022.

K. Overhead and indirect costs. “Indirect Costs” means those costs that are incurred for a common or joint purpose benefiting more than one cost objective and are not readily DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 401
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assignable to the funded project (i.e., costs that are not directly related to the funded project).

Examples of Indirect Costs include but are not limited to: central service costs; general administration of the Grantee; non-project-specific accounting and personnel services performed within the Grantee’s organization; depreciation or use allowances on buildings and equipment; the costs of operating and maintaining non-project-specific facilities; tuition; conference fees; and, generic overhead or markup. This prohibition applies to the Grantee and any subcontract or sub-agreement for work on the Project that will be reimbursed pursuant to this Agreement.

9. METHOD OF PAYMENT. After the disbursement requirements in Paragraph 6 “Basic Conditions” are met, State will disburse the whole or portions of State funding to Grantee, following receipt from Grantee via US mail or Express mail delivery of a “wet signature” invoice, or an electronic invoice certified and transmitted via DocuSign for costs incurred, including Cost Share, and timely Quarterly Progress Reports as required by Paragraph 13, “Submission of Reports.” Payment will be made no more frequently than monthly, in arrears, upon receipt of an invoice bearing the Funding Agreement number. State will notify Grantee, in a timely manner, whenever, upon review of an Invoice, State determines that any portion or portions of the costs claimed are not eligible costs or is not supported by documentation or receipts acceptable to State. Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to State to cure such deficiency(ies). If Grantee fails to submit adequate documentation curing the deficiency(ies), State will adjust the pending invoice by the amount of ineligible or unapproved costs.

Invoices submitted by Grantee shall include the following information:

A. Costs incurred for work performed in implementing the Project during the period identified in the particular invoice.

B. Costs incurred for any interests in real property (land or easements) that have been necessarily acquired for the Project during the period identified in the particular invoice for the implementation of the Project.

C. Invoices shall be submitted on forms provided by State and shall meet the following format requirements:
i. Invoices must contain the date of the invoice, the time period covered by the invoice, and the total amount due.
ii. Invoices must be itemized based on the categories (i.e., tasks) specified in Exhibit B. The amount claimed for salaries/wages/consultant fees must include a calculation formula (i.e., hours or days worked times the hourly or daily rate = the total amount claimed). iii. One set of sufficient evidence (i.e., receipts, copies of checks, timesheets) must be provided for all costs included in the invoice.
iv. Each invoice shall clearly delineate those costs claimed for reimbursement from the State’s funding amount, as depicted in Paragraph 4, “Funding Amount” and those costs that represent Grantee’s costs, as applicable, in Paragraph 5, “Grantee Required Cost Share.” v. Invoices can be submitted by one of the following methods. a. Via email at [email protected]
b. Mail the invoice with the original “wet signature” to the following address: Josh Bannister, Department of Water Resources, South Central Region Office, 619 N.

Laverne Avenue, Suite 104, Fresno, CA 93727
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All invoices submitted shall be accurate and signed under penalty of law. Any and all costs submitted pursuant to this Agreement shall only be for the tasks set forth herein. The Grantee shall not submit any invoice containing costs that are ineligible or have been reimbursed from other funding sources unless required and specifically noted as such (i.e., match costs/cost share). Any eligible costs for which the Grantee is seeking reimbursement shall not be reimbursed from any other source. Double or multiple billing for time, services, or any other eligible cost is illegal and constitutes fraud. Any suspected occurrences of fraud, forgery, embezzlement, theft, or any other misuse of public funds may result in suspension of disbursements of grant funds and/or termination of this Agreement requiring the repayment of all funds disbursed hereunder plus interest. Additionally, the State may request an audit pursuant to Paragraph D.5 and refer the matter to the Attorney General’s Office or the appropriate district attorney’s office for criminal prosecution or the imposition of civil liability. (Civ. Code, §§ 1572- 1573; Pen. Code, §§ 115, 470, 487-489.)

10. WITHHOLDING OF DISBURSEMENTS BY STATE. If State determines that the Project is not being implemented in accordance with the provisions of this Funding Agreement, or that Grantee has failed in any other respect to comply with the provisions of this Funding Agreement, and if Grantee does not remedy any such failure to State’s satisfaction, State may withhold from Grantee all or any portion of the State funding and take any other action that it deems necessary to protect its interests. Where a portion of the State funding has been disbursed to the Grantee and State notifies Grantee of its decision not to release funds that have been withheld pursuant to Paragraph 11, the portion that has been disbursed shall thereafter be repaid immediately as directed by State. State may consider Grantee’s refusal to repay the requested disbursed amount a contract breach subject to the default provisions in Paragraph 11, “Default Provisions.” If State notifies Grantee of its decision to withhold the entire funding amount from Grantee pursuant to this Paragraph, this Funding Agreement shall terminate upon receipt of such notice by Grantee and the State shall no longer be required to provide funds under this Funding Agreement and the Funding Agreement shall no longer be binding on either party.

11. DEFAULT PROVISIONS. Grantee will be in default under this Funding Agreement if any of the following occur:

A. Substantial breaches of this Funding Agreement, or any supplement or amendment to it, or any other agreement between Grantee and State evidencing or securing Grantee’s obligations.

B. Making any false warranty, representation, or statement with respect to this Funding Agreement, the application, or any documents filed to obtain grant funding.

C. Failure to operate or maintain the Project in accordance with this Funding Agreement.

D. Failure to make any remittance required by this Funding Agreement, including any remittance recommended as the result of an audit conducted pursuant to Paragraph D.5.

E. Failure to submit timely progress reports.

F. Failure to routinely invoice State.

G. Failure to meet any of the requirements set forth in Paragraph 12, “Continuing Eligibility.” Should an event of default occur, State shall provide a notice of default to the Grantee and shall give Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via first-class mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, State may do any of the following:

A. Declare the funding disbursed be immediately repaid.

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B. Terminate any obligation to make future payments to Grantee.

C. Terminate the Funding Agreement.

D. Take any other action that it deems necessary to protect its interests.

In the event State finds it necessary to enforce this provision of this Funding Agreement in the manner provided by law, Grantee agrees to pay all costs incurred by State including, but not limited to, reasonable attorneys' fees, legal expenses, and costs.

12. CONTINUING ELIGIBILITY. Grantee must meet the following ongoing requirement(s) to remain eligible to receive State funds:

A. Grantee must adhere to the protocols developed pursuant to The Open and Transparent Water Data Act (Wat. Code, § 12406) for data sharing, transparency, documentation, and quality control.

B. If the Grantee diverting surface water, the Grantee must maintain compliance with diversion reporting requirements as outlined in Water Code section 5100 et seq.

C. If applicable, maintain compliance with the Urban Water Management Planning Act (Wat. Code, § 10610 et seq.).

D. If applicable, maintain compliance with Sustainable Water Use and Demand Reduction requirements outlined in Water Code Section 10608, et seq.

E. On March 4, 2022, the Governor issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. The EO may be found at:
https://www.gov.ca.gov/wp-content/uploads/2022/03/3.4.22-Russia-Ukraine-ExecutiveOrder.pdf. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under State law.

The EO directs DWR to terminate funding agreements with, and to refrain from entering any new agreements with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine that the Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this Agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the State.

13. SUBMISSION OF REPORTS. The submittal and approval of all reports is a requirement for the successful completion of this Funding Agreement. Reports shall meet generally accepted professional standards for technical reporting and shall be proofread for content, numerical accuracy, spelling, and grammar prior to submittal to State. All reports shall be submitted to the State’s Project Manager and shall be submitted via email or DWR’s “Grant Review and Tracking System” (GRanTS). If requested, Grantee shall promptly provide any additional information deemed necessary by State for the approval of reports. Reports shall be presented in the formats described in the applicable portion of Exhibit F. The timely submittal of reports is a requirement for initial and continued disbursement of State funds. Submittal and subsequent approval by the State, of a Project Completion Report is a requirement for the release of any funds retained for such project.

A. Quarterly Progress Reports: Grantee shall submit Quarterly Progress Reports to meet the State’s requirement for disbursement of funds. Quarterly Progress Reports shall be sent directly to the Project Manager via email or uploaded via GRanTS, and the State’s Project Manager notified of upload. Quarterly Progress Reports shall, in part, provide a brief description of the work performed, Grantee’s activities, milestones achieved, any DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 404
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accomplishments and any problems encountered in the performance of the work under this Funding Agreement during the reporting period. The first Quarterly Progress Report should be submitted to the State no later than three months after the execution of the agreement with future reports then due on successive three-month increments based on the invoicing schedule and this date.

B. Project Completion Report: Grantee shall prepare and submit to State a Project Completion Report for the Project. Grantee shall submit the Project Completion Report within ninety (90) calendar days of project completion. The Project Completion Report shall include, in part, a description of actual work done, any changes or amendments to the Project, and a final schedule showing actual progress versus planned progress, copies of any final documents or reports generated or utilized during the Project. The Project Completion Report shall also include, if applicable, certification of final project by a registered civil engineer, consistent with Standard Condition D.17, “Final Inspections and Certification of Registered Civil Engineer”. A DWR “Certification of Project Completion” form will be provided by the State.

14. OPERATION AND MAINTENANCE OF PROJECT. For the useful life of construction and implementation projects and in consideration of the funding made by State, Grantee agrees to ensure or cause to be performed the commencement and continued operation of the Project, and shall ensure or cause the Project to be operated in an efficient and economical manner; shall ensure all repairs, renewals, and replacements necessary to the efficient operation of the same are provided; and shall ensure or cause the same to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. The State shall not be liable for any cost of such maintenance, management, or operation. Grantee or their successors may, with the written approval of State, transfer this responsibility to use, manage, and maintain the property. For purposes of this Funding Agreement, “useful life” means period during which an asset, property, or activity is expected to be usable for the purpose it was acquired or implemented; “operation costs” include direct costs incurred for material and labor needed for operations, utilities, insurance, and similar expenses, and “maintenance costs” include ordinary repairs and replacements of a recurring nature necessary for capital assets and basic structures and the expenditure of funds necessary to replace or reconstruct capital assets or basic structures. Refusal of Grantee to ensure operation and maintenance of the Project in accordance with this provision may, at the option of State, be considered a breach of this Funding Agreement and may be treated as default under Paragraph 11, “Default Provisions.”

15. NOTIFICATION OF STATE. Grantee shall promptly notify State, in writing, of the following items:

A. Events or proposed changes that could affect the scope, budget, or work performed under this Funding Agreement. Grantee agrees that no substantial change in the scope of the Project will be undertaken until written notice of the proposed change has been provided to State and State has given written approval for such change. Substantial changes generally include changes to the scope of work, schedule or term, and budget.

B. Any public or media event publicizing the accomplishments and/or results of this Funding Agreement and provide the opportunity for attendance and participation by State’s representatives. Grantee shall make such notification at least 14 calendar days prior to the event.

C. Discovery of any potential archaeological or historical resource. Should a potential archaeological or historical resource be discovered during construction, the Grantee agrees that all work in the area of the find will cease until a qualified archaeologist has evaluated the situation and made recommendations regarding preservation of the resource, and the State has determined what actions should be taken to protect and preserve the resource. The DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 405
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Grantee agrees to implement appropriate actions as directed by the State.

D. The initiation of any litigation or the threat of litigation against the Grantee regarding the Project or that may affect the Project in any way.

E. Final inspection of the completed work on a project by a Registered Civil Engineer, in accordance with Standard Condition D.17, “Final Inspections and Certification of Registered Civil Engineer.” Grantee shall notify the State’s Project Manager of the inspection date at least 14 calendar days prior to the inspection in order to provide State the opportunity to participate in the inspection.

16. NOTICES. Any notice, demand, request, consent, or approval that either party desires or is required to give to the other party under this Funding Agreement shall be in writing. Notices may be transmitted by any of the following means:

A. By delivery in person.

B. By certified U.S. mail, return receipt requested, postage prepaid.

C. By “overnight” delivery service, provided that next-business-day delivery is requested by the sender.

D. By electronic means.

E. Notices delivered in person will be deemed effective immediately on receipt (or refusal of delivery or receipt). Notices sent by certified mail will be deemed effective given ten (10) calendar days after the date deposited with the U. S. Postal Service. Notices sent by overnight delivery service will be deemed effective one business day after the date deposited with the delivery service. Notices sent electronically will be effective on the date of transmission, which is documented in writing. Notices shall be sent to the below addresses. Either party may, by written notice to the other, designate a different address that shall be substituted for the one below.

17. PERFORMANCE EVALUATION. Upon completion of this Funding Agreement, Grantee’s performance will be evaluated by the State and a copy of the evaluation will be placed in the State file and a copy sent to the Grantee.

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18. PROJECT REPRESENTATIVES. The Project Representatives during the term of this Funding Agreement are as follows:

Department of Water Resources
Arthur Hinojosa
Manager, Division of Regional Assistance
P.O. Box 942836
Sacramento, CA 94236
Phone: (916) 902-6713
Email: [email protected]
City of Fowler
Wilma Tucker
City Manager
128 S. 5th Street
Fowler, CA 93625
Phone: (559) 834-3113
Email:[email protected]
Direct all inquiries to the Project Manager:

Department of Water Resources
Josh Bannister
Water Resource Engineer
South Central Region Office
691 N. Laverne Ave, Suite 104
Fresno, CA 93727
Phone: (916) 820-7622
Email: [email protected]
City of Fowler
Dario Dominguez
Public Works Director
128 S. 5th Street
Fowler, CA 93625
Phone: (559) 834-3113
Email:[email protected]
Either party may change its Project Representative or Project Manager upon written notice to the other party.

19. STANDARD PROVISIONS AND INTEGRATION. This Funding Agreement is complete and is the final Agreement between the parties. The following Exhibits are attached and made a part of this Funding Agreement by this reference:

Exhibit A – WORK PLAN
Exhibit B – BUDGET
Exhibit C – SCHEDULE
Exhibit D – STANDARD CONDITIONS
Exhibit E – GRANTEE’S AUTHORIZING RESOLUTION
Exhibit F – REPORT FORMATS AND REQUIREMENTS
Exhibit G – STATE AUDIT DOCUMENT REQUIREMENTS
Exhibit H – INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE Exhibit I – APPRAISAL SPECIFICATIONS
Exhibit J – ADVANCE PAYMENT
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IN WITNESS WHEREOF, the parties hereto have executed this Funding Agreement.

STATE OF CALIFORNIA

DEPARTMENT OF WATER RESOURCES
______________________________
Arthur Hinojosa, Manager
Division of Regional Assistance
Date__________________________
Approved as to Legal Form and Sufficiency
______________________________
Robin Brewer, Assistant General Counsel
Office of General Counsel

CITY OF FOWLER
______________________________
Wilma Tucker, City Manager
Date__________________________
Date__________________________
DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 2/24/2023
For
2/24/2023
2/24/2023
408
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Grant Agreement No. 4600015027

Exhibit A

WORK PLAN
Project Title: City of Fowler Drought Resiliency Project Grantee: City of Fowler
Project Description: The Project is comprised of constructing a new well (Well 9) on the west side of the system and equipping it with necessary piping, a backup generator, and other appurtenances to improve water supply resiliency for the community, especially as water levels decline due to the current drought.

The Grantee’s water system has only one production well (Well 8) on the west side of State Route 99 (SR99) and three small diameter connection points from the west side of the system to the east side of the system where most of the supply sources are located. This water system functions, in some regards, as two separate components of the overall water system due to the minimal connectivity between the west and the east side of the Grantee’s water system.

Task 1 – Project Administration
This task includes project administration, invoicing, and reporting.

Project administration includes working with DWR to develop and execute the Funding Agreement, administration of the Project including overseeing the budget and schedule, making payments to engineers and contractors after inspections and/or approval of work, and other activities related to the completion of the Project. Administration includes attending weekly/monthly meetings (as needed) with DWR Project Manager and other meetings required with approval agencies.

Invoicing includes preparing and submitting invoices and appropriate backup documentation to the DWR Project Manager describing the work completed and listing the costs incurred during the billing cycle.

Reporting includes preparing and submitting progress reports to DWR. Prepare quarterly reports and submit them to DWR. Draft Project Completion Report and submit for DWR comment. Prepare final Project Completion Report incorporating DWR comments. All reports should be prepared as specified in Exhibit F of this Agreement.

Deliverables:
• Invoices and supporting documents
• Quarterly progress reports
• Draft Project Completion Report
• Final Project Completion Report
• Auditable Records
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Task 2 – CEQA Documentation and Permitting
This task includes completing the Environmental Information Form (EIF), preparing documentation to satisfy CEQA compliance, and obtaining permits for the Project. DWR will review CEQA documentation for concurrence prior to beginning construction. The Grantee is responsible for obtaining the permits needed for the Project.

Deliverables:
• Environmental Information Form
• Final CEQA documentation
• Copies of other necessary permits
Task 3 – Design and Engineering Services
This task includes preparing design documents to indicate the location of all proposed water system improvements including plans and specifications for Well 9 with a production capacity of approximately 1,200 gallons per minute, discharge piping, valves, and other appurtenances. This task also includes engineering services during bid solicitation and construction.

This task includes well site evaluation, schematic design, boundary and topographical survey, geotechnical investigation, final design, application for electrical service to the well site, construction documents (plans and specifications), and opinion of probable construction cost. This task will also include preparing bid documents, advertising for construction, and awarding construction contracts.

Once construction documents are finalized, the Grantee will solicit bids from qualified contractors for the construction of the Project.

Deliverables:
• Design documents
• Final design plans, specifications, and cost estimates • Copy of Bid Documents
• Proof of Advertisements
• Copy of awarded contracts
• Copy of Notices to Proceed
Task 4 – Construction
This task includes constructing Well 9 and other associated improvements. Construction will be divided into three components: (1) filling the existing storm drain pond; (2) drilling a pilot hole for water quality testing and constructing a production well; and (3) constructing well site improvements and equipping the well. The detailed construction activities are as follows. • Demolish, remove, and dispose of existing facilities inside the storm drain pond. • Backfill the storm drain pond with compacted fill material. • Drill pilot hole to conduct zone sampling for the final well design. • Construct production well after water quality test results are received.

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• Construct well site improvements including site grading, discharge piping, equipping the well, electrical equipment with enclosure, and fencing with access gates to protect the new well site. • Install a standby generator as a backup power supply.

This task also includes construction management, owner electrical utility service fees, environmental pre-construction surveys (if required), materials and water quality testing, and construction administration and review. In addition, this task will include engineering and surveying services during construction, including construction staking, submittal review, response to requests for information (RFI), periodic site visits, and preparation of as-built drawings.

Deliverables:
• Zone sampling test results
• Water quality analyses
• Well completion report
• Well logs
• Construction photos
• Certification of Project Completion
• As-built drawings
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Exhibit B
BUDGET
All work associated with the Project must be completed prior to payment of retention. The Grantee is required to maintain all financial documents related to the Project in accordance with Exhibit G (State Audit Document Requirements for Grantees).

Task Funding
Amount
Task 1 – Project Administration $51,900
Task 2 – CEQA Documentation and Permitting $54,600
Task 3 – Design and Engineering Services $362,200
Task 4 – Construction $1,604,750
Grand Total $2,073,450
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Exhibit C

SCHEDULE
Task Start Date End Date
Task 1 – Project Administration 4/29/2022 12/31/2024
Task 2 – CEQA Documentation and Permitting 11/30/2022 8/31/2023 Task 3 – Design and Engineering Services 11/30/2022 8/31/2023 Task 4 – Construction 8/1/2023 12/31/2024
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Exhibit D

STANDARD CONDITIONS
D.1. ACCOUNTING AND DEPOSIT OF FUNDING DISBURSEMENT:

A. Separate Accounting of Funding Disbursements: Grantee shall account for the money disbursed pursuant to this Funding Agreement separately from all other Grantee funds.

Grantee shall maintain audit and accounting procedures that are in accordance with generally accepted accounting principles and practices, consistently applied. Grantee shall keep complete and accurate records of all receipts and disbursements on expenditures of such funds. Grantee shall require its contractors or subcontractors to maintain books, records, and other documents pertinent to their work in accordance with generally accepted accounting principles and practices. Records are subject to inspection by State at any and all reasonable times.

B. Disposition of Money Disbursed: All money disbursed pursuant to this Funding Agreement shall be deposited in a separate account, administered, and accounted for pursuant to the provisions of applicable law.

C. Remittance of Unexpended Funds: Grantee shall remit to State any unexpended funds that were disbursed to Grantee under this Funding Agreement and were not used to pay Eligible Project Costs within a period of sixty (60) calendar days from the final disbursement from State to Grantee of funds or, within thirty (30) calendar days of the expiration of the Funding Agreement, whichever comes first.

D.2. ACKNOWLEDGEMENT OF CREDIT AND SIGNAGE: Grantee shall include appropriate acknowledgement of credit to the State for its support when promoting the Project or using any data and/or information developed under this Funding Agreement. Signage shall be posted in a prominent location at Project site(s) (if applicable) or at the Grantee’s headquarters and shall include the Department of Water Resources color logo and the following disclosure statement:
“Funding for this project has been provided in full or in part from the State Department of Water Resources.” The Grantee shall also include in each of its contracts for work under this Agreement a provision that incorporates the requirements stated within this Paragraph.

D.3. AMENDMENT: This Funding Agreement may be amended at any time by mutual agreement of the Parties, except insofar as any proposed amendments are in any way contrary to applicable law. Requests by the Grantee for amendments must be in writing stating the amendment request and the reason for the request. Requests solely for a time extension must be submitted at least 90 days prior to the work completion date set forth in Paragraph 2. Any other request for an amendment must be submitted at least 180 days prior to the work completion date set forth in Paragraph 2. State shall have no obligation to agree to an amendment.

D.4. AMERICANS WITH DISABILITIES ACT: By signing this Funding Agreement, Grantee assures State that it complies with the Americans with Disabilities Act (ADA) of 1990, (42 U.S.C. § 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA.

D.5. AUDITS: State reserves the right to conduct an audit at any time between the execution of this Funding Agreement and the completion of the Project, with the costs of such audit borne by State. After completion of the Project, State may require Grantee to conduct a final audit to State’s specifications, at Grantee’s expense, such audit to be conducted by and a report prepared by an independent Certified Public Accountant. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Funding Agreement, and State DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 414
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may elect to pursue any remedies provided in Paragraph 11 or take any other action it deems necessary to protect its interests. The Grantee agrees it shall return any audit disallowances to the State.

Pursuant to Government Code section 8546.7, the Grantee shall be subject to the examination and audit by the State for a period of three (3) years after final payment under this Funding Agreement with respect of all matters connected with this Funding Agreement, including but not limited to, the cost of administering this Funding Agreement. All records of Grantee or its contractor or subcontractors shall be preserved for this purpose for at least three (3) years after receipt of the final disbursement under this Agreement.

D.6. BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Funding Agreement does not appropriate sufficient funds for this program, this Funding Agreement shall be of no force and effect. This provision shall be construed as a condition precedent to the obligation of State to make any payments under this Funding Agreement. In this event, State shall have no liability to pay any funds whatsoever to Grantee or to furnish any other considerations under this Funding Agreement and Grantee shall not be obligated to perform any provisions of this Funding Agreement. Nothing in this Funding Agreement shall be construed to provide Grantee with a right of priority for payment over any other Grantee. If funding for any fiscal year after the current year covered by this Funding Agreement is reduced or deleted by the Budget Act, by Executive Order, or by order of the Department of Finance, the State shall have the option to either cancel this Funding Agreement with no liability occurring to State or offer a Funding Agreement amendment to Grantee to reflect the reduced amount.

D.7. CEQA: Activities funded under this Funding Agreement, regardless of funding source, must be in compliance with the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21000 et seq.) Any work that is subject to CEQA and funded under this Agreement shall not proceed until documents that satisfy the CEQA process are received by the State’s Project Manager and the State has completed its CEQA compliance. Work funded under this Agreement that is subject to a CEQA document shall not proceed until and unless approved by the Department of Water Resources. Such approval is fully discretionary and shall constitute a condition precedent to any work for which it is required. If CEQA compliance by the Grantee is not complete at the time the State signs this Agreement, once State has considered the environmental documents, it may decide to require changes, alterations, or other mitigation to the Project; or to not fund the Project. Should the State decide to not fund the Project, this Agreement shall be terminated in accordance with Paragraph 11.

D.8. CHILD SUPPORT COMPLIANCE ACT: The Grantee acknowledges in accordance with Public Contract Code section 7110, that:

A. The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Family Code section 5200 et seq.; and B. The Grantee, to the best of its knowledge, is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.

D.9. CLAIMS DISPUTE: Any claim that the Grantee may have regarding performance of this Agreement including, but not limited to, claims for additional compensation or extension of time, shall be submitted to the DWR Project Representative, within thirty (30) days of the Grantee’s knowledge of the claim. State and Grantee shall then attempt to negotiate a DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 415
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resolution of such claim and process an amendment to this Agreement to implement the terms of any such resolution.

D.10. COMPETITIVE BIDDING AND PROCUREMENTS: Grantee’s contracts with other entities for the acquisition of goods and services and construction of public works with funds provided by State under this Funding Agreement must be in writing and shall comply with all applicable laws and regulations regarding the securing of competitive bids and undertaking competitive negotiations. If the Grantee does not have a written policy to award contracts through a competitive bidding or sole source process, the Department of General Services’ State Contracting Manual rules must be followed and are available at:
https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-ResourcesList-Folder/State-Contracting.

D.11. COMPUTER SOFTWARE: Grantee certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Funding Agreement for the acquisition, operation, or maintenance of computer software in violation of copyright laws.

D.12. CONFLICT OF INTEREST: All participants are subject to State and Federal conflict of interest laws. Failure to comply with these laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void.

Other legal action may also be taken. Applicable statutes include, but are not limited to, Government Code section 1090 and Public Contract Code sections 10410 and 10411, for State conflict of interest requirements.

A. Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment.

No State officer or employee shall contract on his or her own behalf as an independent contractor with any State agency to provide goods or services.

B. Former State Employees: For the two-year period from the date, he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelve-month period from the date, he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.

C. Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the California Political Reform Act. (Gov. Code, § 87100 et seq.)
D. Employees and Consultants to the Grantee: Individuals working on behalf of the Grantee may be required by the Department to file a Statement of Economic Interests (Fair Political Practices Commission Form 700) if it is determined that an individual is a consultant for Political Reform Act purposes.

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D.13. DELIVERY OF INFORMATION, REPORTS, AND DATA: Grantee agrees to expeditiously provide throughout the term of this Funding Agreement, such reports, data, information, and certifications as may be reasonably required by State.

D.14. DISPOSITION OF EQUIPMENT: Grantee shall provide to State, not less than 30 calendar days prior to submission of the final invoice, an itemized inventory of equipment purchased with funds provided by State. The inventory shall include all items with a current estimated fair market value of more than $5,000.00 per item. Within 60 calendar days of receipt of such inventory, State shall provide Grantee with a list of the items on the inventory that State will take title to. All other items shall become the property of Grantee. State shall arrange for delivery from Grantee of items that it takes title to. Cost of transportation, if any, shall be borne by State.

D.15. DRUG-FREE WORKPLACE CERTIFICATION: Certification of Compliance: By signing this Funding Agreement, Grantee, its contractors or subcontractors hereby certify, under penalty of perjury under the laws of State of California, compliance with the requirements of the DrugFree Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:

A. Publish a statement notifying employees, contractors, and subcontractors that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, contractors, or subcontractors for violations, as required by the Government Code section 8355.

B. Establish a Drug-Free Awareness Program, as required by Government Code section 8355 to inform employees, contractors, or subcontractors about all of the following:
i. The dangers of drug abuse in the workplace,
ii. Grantee’s policy of maintaining a drug-free workplace, iii. Any available counseling, rehabilitation, and employee assistance programs, and iv. Penalties that may be imposed upon employees, contractors, and subcontractors for drug abuse violations.

C. Provide, as required by Government Code section 8355, that every employee, contractor, and/or subcontractor who works under this Funding Agreement:
i. Will receive a copy of Grantee’s drug-free policy statement, and ii. Will agree to abide by terms of Grantee’s condition of employment, contract, or subcontract.

D.16. EASEMENTS: Where the Grantee acquires property in fee title or funds improvements to real property already owned in fee by the Grantee using State funds provided through this Funding Agreement, an appropriate easement or other title restriction providing for floodplain preservation and agricultural and/or wildlife habitat conservation for the subject property in perpetuity, approved by the State, shall be conveyed to a regulatory or trustee agency or conservation group acceptable to the State. The easement or other title restriction must be in the first position ahead of any recorded mortgage or lien on the property unless this requirement is waived by the State.

Where the Grantee acquires an easement under this Agreement, the Grantee agrees to monitor and enforce the terms of the easement, unless the easement is subsequently transferred to another land management or conservation organization or entity with State DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 417
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permission, at which time monitoring and enforcement responsibilities will transfer to the new easement owner.

Failure to provide an easement acceptable to the State may result in termination of this Agreement.

D.17. FINAL INSPECTIONS AND CERTIFICATION OF REGISTERED CIVIL ENGINEER: Upon completion of the Project, Grantee shall provide for a final inspection and certification by a California Registered Civil Engineer that the Project has been completed in accordance with submitted final plans and specifications and any modifications thereto and in accordance with this Funding Agreement.

D.18. GOVERNING LAW: This Funding Agreement is governed by and shall be interpreted in accordance with the laws of the State of California.

D.19. GRANTEE'S RESPONSIBILITIES: Grantee and its representatives shall:

A. Faithfully and expeditiously perform or cause to be performed all project work as described in Exhibit A (Work Plan) and in accordance with Project Exhibit B (Budget) and Exhibit C (Schedule).

B. Accept and agree to comply with all terms, provisions, conditions, and written commitments of this Funding Agreement, including all incorporated documents, and to fulfill all assurances, declarations, representations, and statements made by Grantee in the application, documents, amendments, and communications filed in support of its request for funding.

C. Comply with all applicable California, federal, and local laws and regulations.

D. Implement the Project in accordance with applicable provisions of the law.

E. Fulfill its obligations under the Funding Agreement and be responsible for the performance of the Project.

F. Obtain any and all permits, licenses, and approvals required for performing any work under this Funding Agreement, including those necessary to perform design, construction, or operation and maintenance of the Project. Grantee shall provide copies of permits and approvals to State.

G. Be solely responsible for design, construction, and operation, and maintenance of the Project. Review or approval of plans, specifications, bid documents, or other construction documents by State is solely for the purpose of proper administration of funds by State and shall not be deemed to relieve or restrict responsibilities of Grantee under this Agreement.

H. Be solely responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Grantee shall be responsible for any and all disputes arising out of its contracts for work on the Project, including but not limited to payment disputes with contractors and subcontractors. The State will not mediate disputes between the Grantee and any other entity concerning responsibility for performance of work.

D.20. INDEMNIFICATION: Grantee shall indemnify and hold and save the State, its officers, agents, and employees, free and harmless from any and all liabilities for any claims and damages (including inverse condemnation) that may arise out of the Project and this Agreement, including any breach of this Agreement. Grantee shall require its contractors or subcontractors DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 418
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to name the State, its officers, agents and employees as additional insureds on their liability insurance for activities undertaken pursuant to this Agreement.

D.21. INDEPENDENT CAPACITY: Grantee, and the agents and employees of the Grantee, in the performance of the Funding Agreement, shall act in an independent capacity and not as officers, employees, or agents of the State.

D.22. INSPECTION OF BOOKS, RECORDS, AND REPORTS: During regular office hours, each of the parties hereto and their duly authorized representatives shall have the right to inspect and to make copies of any books, records, or reports of either party pertaining to this Funding Agreement or matters related hereto. Each of the parties hereto shall maintain and shall make available at all times for such inspection accurate records of all its costs, disbursements, and receipts with respect to its activities under this Funding Agreement. Failure or refusal by Grantee to comply with this provision shall be considered a breach of this Funding Agreement, and State may withhold disbursements to Grantee or take any other action it deems necessary to protect its interests.

D.23. INSPECTIONS OF PROJECT BY STATE: State shall have the right to inspect the work being performed at any and all reasonable times during the term of the Grantee. This right shall extend to any subcontracts, and Grantee shall include provisions ensuring such access in all its contracts or subcontracts entered into pursuant to its Funding Agreement with State.

D.24. LABOR CODE COMPLIANCE: The Grantee agrees to be bound by all the provisions of the Labor Code regarding prevailing wages and shall monitor all contracts subject to reimbursement from this Agreement to assure that the prevailing wage provisions of the Labor Code are being met. Current Department of Industrial Relations (DIR) requirements may be found at: http://www.dir.ca.gov/lcp.asp. For more information, please refer to DIR’s Public Works Manual at: http://www.dir.ca.gov/dlse/PWManualCombined.pdf. The Grantee affirms that it is aware of the provisions of section 3700 of the Labor Code, which requires every employer to be insured against liability for workers’ compensation or to undertake selfinsurance, and the Grantee affirms that it will comply with such provisions before commencing the performance of the work under this Agreement and will make its contractors and subcontractors aware of this provision.

D.25. MODIFICATION OF OVERALL WORK PLAN: At the request of the Grantee, the State may at its sole discretion approve non-material changes to the portions of Exhibits A, B, and C that concern the budget and schedule without formally amending this Funding Agreement. Nonmaterial changes with respect to the budget are changes that only result in reallocation of the budget and will not result in an increase in the amount of the State Funding Agreement. Nonmaterial changes with respect to the Project schedule are changes that will not extend the term of this Funding Agreement. Requests for non-material changes to the budget and schedule must be submitted by the Grantee to the State in writing and are not effective unless and until specifically approved by the State’s Program Manager in writing.

D.26. NONDISCRIMINATION: During the performance of this Funding Agreement, Grantee and its contractors or subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), marital/domestic partner status, gender identity, and denial of medical and family care leave or pregnancy disability leave.

Grantee and its contractors or subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 419
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harassment. Grantee and its contractors or subcontractors shall comply with the provisions of the California Fair Employment and Housing Act (Gov. Code, § 12990.) and the applicable regulations promulgated thereunder (Cal. Code Regs., tit. 2, § 11000 et seq.). The applicable regulations of the Fair Employment and Housing Commission are incorporated into this Agreement by reference. Grantee and its contractors or subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.

Grantee shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Funding Agreement.

D.27. OPINIONS AND DETERMINATIONS: Where the terms of this Funding Agreement provide for action to be based upon, judgment, approval, review, or determination of either party hereto, such terms are not intended to be and shall never be construed as permitting such opinion, judgment, approval, review, or determination to be arbitrary, capricious, or unreasonable.

D.28. PERFORMANCE BOND: Where contractors are used, the Grantee shall not authorize construction to begin until each contractor has furnished a performance bond in favor of the Grantee in the following amounts: faithful performance (100%) of contract value, and labor and materials (100%) of contract value. This requirement shall not apply to any contract for less than $25,000.00. Any bond issued pursuant to this paragraph must be issued by a California-admitted surety. (Pub. Contract Code, § 7103; Code Civ. Proc., § 995.311.) D.29. PRIORITY HIRING CONSIDERATIONS: If this Funding Agreement includes services in excess of $200,000, the Grantee shall give priority consideration in filling vacancies in positions funded by the Funding Agreement to qualified recipients of aid under Welfare and Institutions Code section 11200 in accordance with Public Contract Code section 10353.

D.30. PROHIBITION AGAINST DISPOSAL OF PROJECT WITHOUT STATE PERMISSION: The Grantee shall not sell, abandon, lease, transfer, exchange, mortgage, hypothecate, or encumber in any manner whatsoever all or any portion of any real or other property necessarily connected or used in conjunction with the Project, or with Grantee’s service of water, without prior permission of State. Grantee shall not take any action, including but not limited to actions relating to user fees, charges, and assessments that could adversely affect the ability of Grantee to meet its obligations under this Funding Agreement, without prior written permission of State. State may require that the proceeds from the disposition of any real or personal property be remitted to State.

D.31. PROJECT ACCESS: The Grantee shall ensure that the State, the Governor of the State, or any authorized representatives of the foregoing, will have safe and suitable access to the Project site at all reasonable times during Project construction and thereafter for the term of this Agreement.

D.32. REMAINING BALANCE: In the event the Grantee does not submit invoices requesting all of the funds encumbered under this Funding Agreement, any remaining funds revert to the State.

The State will notify the Grantee stating that the Project file is closed, and any remaining balance will be disencumbered and unavailable for further use under this Funding Agreement.

D.33. REMEDIES NOT EXCLUSIVE: The use by either party of any remedy specified herein for the enforcement of this Funding Agreement is not exclusive and shall not deprive the party using such remedy of, or limit the application of, any other remedy provided by law.

D.34. RETENTION: The State shall withhold ten percent (10%) of the funds requested by the Grantee for reimbursement of Eligible Project Costs until the Project is completed and Final DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 420
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Report is approved. Any retained amounts due to the Grantee will be promptly disbursed to the Grantee, without interest, upon completion of the Project.

D.35. RIGHTS IN DATA: Grantee agrees that all data, plans, drawings, specifications, reports, computer programs, operating manuals, notes, and other written or graphic work produced in the performance of this Funding Agreement shall be made available to the State and shall be in the public domain to the extent to which release of such materials is required under the California Public Records Act. (Gov. Code, § 6250 et seq.) Grantee may disclose, disseminate and use in whole or in part, any final form data and information received, collected, and developed under this Funding Agreement, subject to appropriate acknowledgement of credit to State for financial support. Grantee shall not utilize the materials for any profit-making venture or sell or grant rights to a third party who intends to do so. The State shall have the right to use any data described in this Paragraph for any public purpose.

D.36. SEVERABILITY: Should any portion of this Funding Agreement be determined to be void or unenforceable, such shall be severed from the whole and the Funding Agreement shall continue as modified.

D.37. SUSPENSION OF PAYMENTS: This Funding Agreement may be subject to suspension of payments or termination, or both if the State determines that:

A. Grantee, its contractors, or subcontractors have made a false certification, or B. Grantee, its contractors, or subcontractors violates the certification by failing to carry out the requirements noted in this Funding Agreement.

D.38. SUCCESSORS AND ASSIGNS: This Funding Agreement and all of its provisions shall apply to and bind the successors and assigns of the parties. No assignment or transfer of this Funding Agreement or any part thereof, rights hereunder, or interest herein by the Grantee shall be valid unless and until it is approved by State and made subject to such reasonable terms and conditions as State may impose.

D.39. TERMINATION BY GRANTEE: Subject to State approval which may be reasonably withheld, Grantee may terminate this Agreement and be relieved of contractual obligations. In doing so, Grantee must provide a reason(s) for termination. Grantee must submit all progress reports summarizing accomplishments up until termination date.

D.40. TERMINATION FOR CAUSE: Subject to the right to cure under Paragraph 11, the State may terminate this Funding Agreement and be relieved of any payments should Grantee fail to perform the requirements of this Funding Agreement at the time and in the manner herein, provided including but not limited to reasons of default under Paragraph 11.

D.41. TERMINATION WITHOUT CAUSE: The State may terminate this Agreement without cause on 30 days’ advance written notice. The Grantee shall be reimbursed for all reasonable expenses incurred up to the date of termination.

D.42. THIRD PARTY BENEFICIARIES: The parties to this Agreement do not intend to create rights in, or grant remedies to, any third party as a beneficiary of this Agreement, or any duty, covenant, obligation or understanding established herein.

D.43. TIMELINESS: Time is of the essence in this Funding Agreement.

D.44. TRAVEL: Travel includes the reasonable and necessary costs of transportation, subsistence, and other associated costs incurred by personnel during the term of this Funding Agreement.

Any reimbursement for necessary travel and per diem shall be at rates not to exceed those set by the California Department of Human Resources for excluded employees. These rates may DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 421
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be found at: http://www.calhr.ca.gov/employees/Pages/travel-reimbursements.aspx.

Reimbursement will be at the State travel and per diem amounts that are current as of the date costs are incurred. No travel outside the State of California shall be reimbursed unless prior written authorization is obtained from the State.

D.45. UNION ORGANIZING: Grantee, by signing this Funding Agreement, hereby acknowledges the applicability of Government Code sections 16645 through 16649 to this Funding Agreement.

Furthermore, Grantee, by signing this Funding Agreement, hereby certifies that:

A. No State funds disbursed by this Funding Agreement will be used to assist, promote, or deter union organizing.

B. Grantee shall account for State funds disbursed for a specific expenditure by this Funding Agreement to show those funds were allocated to that expenditure.

C. Grantee shall, where State funds are not designated as described in (b) above, allocate, on a pro rata basis, all disbursements that support the program.

D. If Grantee makes expenditures to assist, promote, or deter union organizing, Grantee will maintain records sufficient to show that no State funds were used for those expenditures and that Grantee shall provide those records to the Attorney General upon request.

D.46. VENUE: The State and the Grantee hereby agree that any action arising out of this Agreement shall be filed and maintained in the Superior Court in and for the County of Sacramento, California, or in the United States District Court in and for the Eastern District of California. The Grantee hereby waives any existing sovereign immunity for the purposes of this Agreement.

D.47. WAIVER OF RIGHTS: None of the provisions of this Funding Agreement shall be deemed waived unless expressly waived in writing. It is the intention of the parties here to that from time to time either party may waive any of its rights under this Funding Agreement unless contrary to law. Any waiver by either party of rights arising in connection with the Funding Agreement shall not be deemed to be a waiver with respect to any other rights or matters, and such provisions shall continue in full force and effect.

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Exhibit E
GRANTEE’S AUTHORIZING RESOLUTION
DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 423
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Exhibit F

REPORT FORMATS AND REQUIREMENTS
The following reporting formats should be utilized. Please obtain State approval prior to submitting a report in an alternative format.

1. PROGRESS REPORTS
Progress reports shall generally use the following format. This format may be modified as necessary to effectively communicate information.

PROJECT STATUS
Describe the work performed during the time period covered by the report including but not limited to:

PROJECT INFORMATION
• Legal matters
• Engineering Evaluations
• Environmental matters
• Status of permits, easements, rights-of-way, rights of entry, and approvals as may be required by other State, federal, and/or local agencies • Major accomplishments during the quarter (i.e., tasks completed, milestones met, meetings held or attended, press releases, etc.)
• Issues/concerns that have, will, or could affect the schedule or budget, with a recommendation on how to correct the matter
• Describe differences between the work performed and the work outlined in the Overall Work Plan, including change orders
• Demonstrate financial ability to pay local cost share of Eligible Project Costs required to complete the Project
• Estimate the percentage completion of the overall project • Identify key issues that need to be resolved
• Photos documenting progress

COST INFORMATION
• Provide a list showing all project costs incurred during the time period covered by the report by the Grantee and each contractor working on the Project and which of these costs are Eligible Project Costs
• A discussion on how the actual budget is progressing in comparison to the project budget included in the Overall Work Plan
• A list of any changes approved to the budget in accordance with Funding Agreement and a revised budget, by task, if changed from latest budget in the Overall Work Plan • A discussion of whether there have been any changes to the Grantee’s finance plan for payment of the Grantee’s share of Eligible Project Costs DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 425
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SCHEDULE INFORMATION
• A schedule showing actual progress versus planned progress • A discussion on how the actual schedule is progressing in comparison to the original or last reported schedule
• A list of any changes approved to the Schedule in accordance with Funding Agreement and a revised schedule, by task, if changed from latest reported schedule

2. PROJECT COMPLETION REPORT
Project Completion Reports shall generally use the following format.

EXECUTIVE SUMMARY – Should include a brief summary of project information and include the following items:
• Brief description of work proposed to be done in the original application • Description of actual work completed and any deviations from the work plan identified in the Funding Agreement
REPORTS AND/OR PRODUCTS – The following items should be provided • Final Evaluation report
• Electronic copies of any data collected, not previously submitted • As-built drawings
• Final geodetic survey information
• Self-Certification that the Project meets the stated goal of the funding agreement (e.g. 100- year level of flood protection, HMP standard, PL-84-99, etc.) • Project photos
• Discussion of problems that occurred during the work and how those problems were resolved
• A final project schedule showing actual progress versus planned progress COSTS AND DISPOSITION OF FUNDS – A list showing:
• The date each invoice was submitted to State
• The amount of the invoice
• The date the check was received
• The amount of the check (If a check has not been received for the final invoice, then state this in this section.)
• A summary of the payments made by the Grantee for meeting its cost sharing obligations under this Funding Agreement.
• A summary of final funds disbursement including:
o Labor cost of personnel of agency/ major consultant /sub-consultants. Indicate personnel, hours, rates, type of profession, and reason for consultant, i.e., design, CEQA work, etc.

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o Evaluation cost information, shown by material, equipment, labor costs, and any change orders
o Any other incurred cost detail
o A statement verifying separate accounting of funding disbursements • Summary of project cost including the following items:
o Accounting of the cost of project expenditure;
o Include all internal and external costs not previously disclosed; and o A discussion of factors that positively or negatively affected the project cost and any deviation from the original project cost estimate.

ADDITIONAL INFORMATION – Any relevant additional Information should be included.

DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 427
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Exhibit G

STATE AUDIT DOCUMENT REQUIREMENTS
The following provides a list of documents typically required by State Auditors and general guidelines for Grantees. List of documents pertains to both State funding and Grantee’s Cost Share, if any, and details the documents/records that State Auditors would need to review in the event of this Funding Agreement is audited. Grantees should ensure that such records are maintained for three (3) years after final disbursement pursuant to this Agreement.

State Audit Document Requirements
Internal Controls

1. Organization chart (e.g., Agency’s overall organization chart and organization chart for the State funded Program/Project).

2. Written internal procedures and flowcharts for the following:
a) Receipts and deposits
b) Disbursements
c) State reimbursement requests
d) Expenditure tracking of State funds
e) Guidelines, policy, and procedures on State-funded Program/Project

3. Audit reports of the Agency internal control structure and/or financial statements within the last two years.

4. Prior audit reports on the State funded Program/Project.

State Funding:

1. Original Funding Agreement, any amendment(s), and budget modification documents.

2. A listing of all grants, loans, or subventions received from the State.

3. A listing of all other funding sources for the Program/Project.

Contracts:

1. All subcontractor and consultant contracts and related or partners’ documents, if applicable.

2. Contracts between the Agency and member agencies as related to the State-funded Program/Project.

Invoices:

1. Invoices from vendors and subcontractors for expenditures submitted to the State for payments under the Funding Agreement.

2. Documentation linking subcontractor invoices to State reimbursement, requests, and related Funding Agreement budget line items.

3. Reimbursement requests submitted to the State for the Funding Agreement.

Cash Documents:

1. Receipts (copies of warrants) showing payments received from the State.

2. Deposit slips (or bank statements) showing deposits of the payments received from the State.

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3. Cancelled checks or disbursement documents showing payments made to vendors, subcontractors, consultants, and/or agents under the grants or loans.

4. Bank statements showing the deposit of the receipts.

Accounting Records:

1. Ledgers showing entries for funding receipts and cash disbursements.

2. Ledgers showing receipts and cash disbursement entries of other funding sources.

3. Bridging documents that tie the general ledger to requests for Funding Agreement reimbursement.

Administration Costs:

1. Supporting documents showing the calculation of administration costs.

Personnel:

1. List of all contractors and Agency staff that worked on the State funded Program/Project.

2. Payroll records including timesheets for contractor staff and the Agency personnel who provided services charged to the program
Project Files:

1. All supporting documentation maintained in the project files.

2. All Funding Agreement related correspondence.

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Exhibit H

INFORMATION NEEDED FOR ESCROW PROCESSING AND CLOSURE
The Grantee must provide the following documents to the State Project Representative during the escrow process. Property acquisition escrow documents must be submitted within the term of this Funding Agreement and after a qualified appraisal has been approved. • Name and Address of Title Company Handling the Escrow • Escrow Number
• Name of Escrow Officer
• Escrow Officer’s Phone Number
• Dollar Amount Needed to Close Escrow
• Legal Description of Property Being Acquired
• Assessor’s Parcel Number(s) of Property Being Acquired • Copy of Title Insurance Report
• Entity Taking Title as Named Insured on Title Insurance Policy • Copy of Escrow Instructions in Draft Form Prior to Recording for Review Purposes • Copy of Final Escrow Instructions
• Verification that all Encumbrances (Liens, Back Taxes, and Similar Obligations) have been Cleared Prior to Recording the Deed to Transfer Title
• Copy of Deed for Review Purposes Prior to Recording
• Copy of Deed as Recorded in County Recorder’s Office
• Copy of Escrow Closure Notice
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Exhibit I

APPRAISAL SPECIFICATIONS
For property acquisitions funded this Funding Agreement, the Grantee must submit an appraisal for review and approval by the Department of General Services or DWR’s Real Estate Branch prior to reimbursement or depositing State funds into an escrow account. All appraisal reports, regardless of report format, must include all applicable Appraisal Specifications below. Appraisals for a total compensation of $150,000 or more shall be reported as a Self-Contained Appraisal Report.

Appraisals for a total compensation of less than $150,000 may be reported as a Summary Appraisal Report, which includes all information necessary to arrive at the appraiser’s conclusion. Appraisal Specifications 14, 16, 21, 23-25, and 28 shall be narrative analysis regardless of the reporting format.

1. Title page with sufficient identification of appraisal assignment.

2. Letter of transmittal summarizing important assumptions and conclusions, value estimate, date of value and date of report.

3. Table of contents.

4. Assumptions and Limiting Conditions, Extraordinary Assumptions, and Hypothetical Conditions as needed.

5. Description of the scope of work, including the extent of data collection and limitations, if any, in obtaining relevant data.

6. Definition of Fair Market Value, as defined by Code of Civil Procedure, section 1263.320.

7. Photographs of subject property and comparable data, including significant physical features and the interior of structural improvements, if applicable.

8. Copies of Tax Assessor’s plat map with the subject marked along with all contiguous assessor’s parcels that depict the ownership.

9. A legal description of the subject property, if available.

10.For large, remote or inaccessible parcels, provide aerial photographs or topographical maps depicting the subject boundaries.

11.Three-year subject property history, including sales, listings, leases, options, zoning, applications for permits, or other documents or facts that might indicate or affect use or value.

12.Discussion of any current Agreement of Sale, option, or listing of subject property. This issue required increased diligence since state agencies often utilize non-profit organizations to quickly acquire sensitive-habitat parcels using Option Agreements. However, due to confidentiality clauses, the terms of the Option are often not disclosed to the state. If the appraiser discovers evidence of an Option or the possible existence of an Option, and the terms cannot be disclosed due to a confidentiality clause, then the appraiser is to cease work and contact the client.

13.Regional, area, and neighborhood analyses. This information may be presented in a summary format.

14.Market conditions and trends including identification of the relevant market area, a discussion of supply and demand within the relevant market area, and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area. This information may be presented in a summary format.

15.Discussion of subject land/site characteristics (size, topography, current use, elevations, zoning and land use issues, development entitlements, General Plan designation, utilities, offsite DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 431
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improvements, access, land features such as levees and creeks, offsite improvements, easements and encumbrances, covenants, conditions and restrictions, flood and earthquake information, toxic hazards, water rights, mineral rights, toxic hazards, taxes and assessments, etc.).

16.Description of subject improvements including all structures, square footage, physical age, type of construction, quality of construction, condition of improvements and/or identification of any permanent plantings. Discussion of construction cost methodology, costs included and excluded, accrued depreciation from all causes, remaining economic life, items of deferred maintenance and cost to cure, and incurable items. Construction cost data must include cost data source, date of estimate or date of publication of cost manual, section and page reference of cost manual, copies of cost estimate if provided from another source, replacement or reproduction cost method used, and supporting calculations including worksheets or spreadsheets.

17.Subject property leasing and operating cost history, including all items of income and expense.

18.Analysis and conclusion of the larger parcel for partial taking appraisals. For partial taking appraisals, Appraisal Specifications generally apply to the larger parcel rather than an ownership where the larger parcel is not the entire ownership.

19.Include a copy of a recent preliminary title report (within the past year) as an appraisal exhibit.

Discuss the title exceptions and analyze the effect of title exceptions on fair market value.

20.For appraisals of partial takings or easements, a detailed description of the taking or easement area including surface features and topography, easements, encumbrances or improvements including levees within the subject partial take or easement, and whether the take area is characteristic of the larger parcel. Any characteristics of the taking area, including existing preproject levees that render the take area different from the larger parcel must be addressed in the valuation.

21.Opinion of highest and best use for the subject property, based on an in depth analysis supporting the concluded use which includes the detail required by the complexity of the analysis. Such support typically requires a discussion of the four criteria of tests utilized to determine the highest and best use of a property. If alternative feasible uses exist, explain and support market, development, cash flow, and risk factors leading to an ultimate highest and best use decision.

22.All approaches to market value applicable to the property type and in the subject market. Explain and support the exclusion of any usual approaches to value.

23.Map(s) showing all comparable properties in relation to the subject property.

24.Photographs and plat maps of comparable properties.

25.In depth discussion of comparable properties, similarities and differences compared to the subject, adjustments to the comparable data, and discussion of the reliability and credibility of the data as it relates to the indicated subject property value. Improved comparable sales which are used to compare to vacant land subject properties must include an allocation between land and improvements, using methodology similar to methodology used in item 16 above to estimate improvement value when possible, with an explanation of the methodology used.

26.Comparable data sheets.
a) For sales, include information on grantor/grantee, sale/recordation dates, listed or asking price as of the date of sale, highest and best use, financing, conditions of sale, buyer motivation, sufficient location information (street address, post mile, and/or distance from local landmarks DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 432
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such as bridges, road intersections, structures, etc.), land/site characteristics, improvements, source of any allocation of sale price between land and improvements, and confirming source. b) For listings, also include marketing time from list date to effective date of the appraisal, original list price, changes in list price, broker feedback, if available. c) For leases, include significant information such as lessor/lessee, lease date and term, type of lease, rent and escalation, expenses, size of space leased, tenant improvement allowance, concessions, use restrictions, options, and confirming source. When comparing improved sales to a vacant land subject, the contributory value of the improvements must be segregated from the land value.

27.For appraisals of easements, a before and after analysis of the burden of the easement on the fee, with attention to how the easement affects highest and best use in the after condition. An Easement Valuation Matrix or generalized easement valuation references may be used ONLY as a reference for a secondary basis of value.

28.For partial taking and easement appraisals, valuation of the remainder in the after condition and analysis and identification of any change in highest and best use or other characteristics in the after condition, to establish severance damages to the remainder in the after condition, and a discussion of special and general benefits, and cost to cure damages or construction contract work.

29.There are occasions where properties involve water rights, minerals, or salable timber that require separate valuations. If an appraisal assignment includes water rights, minerals, or merchantable timber that requires separate valuation, the valuation of the water rights, minerals, or merchantable timber must be completed by a credentialed subject matter specialist.

30.For partial taking and easement appraisals, presentation of the valuation in California partial taking acquisition required format.

31.Implied dedication statement.

32.Reconciliation and final value estimate. Include analysis and comparison of the comparable sales to the subject, and explain and support conclusions reached.

33.Discussion of any departures taken in the development of the appraisal.

34.Signed Certification consistent with the language found in Uniform Standards of Professional Appraisal Practice.

35.If applicable, in addition to the above, appraisals of telecommunication sites must also provide:
a) A discussion of market conditions and trends including identification of the relevant market, a discussion of supply and demand within the relevant market area and a discussion of the relevant market factors impacting demand for site acquisition and leasing within the relevant market area.
b) An analysis of other (ground and vault) leases comparable to subject property. Factors to be discussed in the analysis include the latitude, longitude, type of tower, tower height, number of rack spaces, number of racks occupied, placement of racks, power source and adequacy, backup power, vault and site improvements description and location on site, other utilities; access, and road maintenance costs.

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Exhibit J

ADVANCE PAYMENT
Water Code section 13198.4(c) authorizes advanced payment by the State for grantees that demonstrate cash flow issues. A project may receive an advanced payment of twenty-five (25) percent of its grant award; the remaining seventy-five (75) percent of the grant award will be reimbursed in arrears after the advanced funds have been fully expended. Within ninety (90) calendar days of execution of the Grant Agreement, the Grantee may provide the State an Advanced Payment Request. Advanced Payment Requests received ninety-one (91) calendar days after the execution of this Agreement will not be eligible to receive an advanced payment. The Advanced Payment Request shall contain the following:

A. If the Grantee is requesting the advanced payment, the request(s) shall include:

1. Descriptive information of each project with an update on project status

2. Description and documentation of the cash flow issues the Grantee has that requires funds to be advanced

3. The names of the entities that will receive the funding for each project

4. A detailed Funding Plan which includes how the advanced payment will be expended (in terms of workplan, budget, and schedule) within the timeframe agreed upon by DWR and the Grantee. The Funding Plan must clearly identify the total budget (at Budget Category Level) for each project clearly showing the portion of advanced payment and reimbursement funds.

5. Any other information that DWR may deem necessary
B. Upon review and approval of the Advanced Payment Request, DWR may authorize payment of the requested amount or a lesser amount for those entities that have requested advanced funds.

Based on the project’s Funding Plan and other considerations, DWR may develop a “Disbursement Schedule,” to disburse funds in installments. This Disbursement Schedule may change based on the project’s ongoing compliance with the Advanced Payment requirements and the project’s cash flow needs.

C. Once DWR authorizes the Advanced Payment Request, the Grantee shall submit Advanced Payment Invoice(s) for the initial amount based on the “Disbursement Schedule” containing the request for each project requesting advanced funds, to the State with signature and date of the Grantee’s Project Representative, as indicated in Paragraph 18, “Project Representative.” The Grantee shall be responsible for the timely distribution of the advanced funds. The Advanced Payment Invoice(s) shall be submitted on forms provided by the State and shall meet the following format requirements:

1. Invoice shall contain the date of the invoice, the time period covered by the invoice, and the total amount due.

2. Invoice shall be itemized based on the budget categories specified in Exhibit B, “Budget.”

3. The State Project Manager will notify the Grantee, in a timely manner, when, upon review of an Advance Payment Invoice, the State determines that any portion or portions of the costs claimed are not eligible costs. The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). The Grantee may, within thirty (30) calendar days of the date of receipt of such notice, submit additional documentation to cure such deficiency(ies). If costs are not consistent with the DocuSign Envelope ID: 6BC408B3-A5E0-463D-B6C5-9B05037AB0F3 434
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tasks in Exhibit A, the State will reject the claim and remove them from the Accountability Report.

4. On a quarterly basis, the Grantee will submit an Accountability Report to the State that demonstrates how actual expenditures compare with the scheduled budget. The Accountability Report shall include the following information:
i. An itemization of how advanced funds have been spent to-date (Expenditure Report), including documentation that supports the disbursements (e.g., contractor invoices, receipts, personnel hours, etc.). Accountability Reports shall be itemized based on the budget categories (i.e., tasks) specified in Exhibit B. ii. An updated Accountability Report including an updated Funding Plan that depicts how the remaining advanced funds will be expended and the activities and deliverables associated with the advanced funds within the timeframe agreed upon by DWR and the Grantee when the advanced payment request was approved. iii. Documentation that the funds were placed in a non-interest bearing account, including the dates of deposits and withdrawals from that account. iv. Proof of distribution of advanced funds, if applicable.

D. Once the Grantee has spent all advanced funds in a budget category, then the method of payment will revert to the reimbursement process for that budget category specified in Paragraph 9, “Method of Payment.”
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FUNDING AGREEMENT NO. 4600015027
AMENDMENT 1

BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES

AND CITY OF FOWLER

A PART OF THE SMALL COMMUNITY DROUGHT RELIEF PROGRAM

PURSUANT TO
THE BUDGET ACT OF 2021 AS AMENDED (STATS. 2022, CH. 44, § 25)

FOR THE

CITY OF FOWLER DROUGHT RESILIENCY PROJECT
On February 24, 2023, the State of California, the Department of Water Resources (hereinafter called the State), and the City of Fowler (hereinafter called the Grantee) entered into Agreement No. 4600015027 (Agreement) for the purpose of assisting in the financing the City of Fowler Drought Resiliency Project (Project). On ________, the Agreement is hereby amended (Amendment 1) to update Paragraph 2, Term of Funding Agreement, to update Paragraph 9, Method of Payment, Paragraph 18, Project Representatives, and Schedule (Exhibit C).

The State and the Grantee hereby agree to the following modifications:

1. The last sentence in Paragraph 2 is replaced in its entirety with: However, all work shall be completed by December 31, 2025, and no funds may be requested after April 30, 2026.

2. Paragraph 9.C.v is replaced in its entirety with:
v. Invoices can be submitted by one of the following methods. a. Via email to the State’s Project Manager at [email protected] b. Mail the invoice with the original “wet signature” to the following address: Narges Abbasian Genaveh Department of Water Resources, South Central Region Office, 691 N. Laverne Avenue, Suite 104, Fresno, CA 93727

3. Paragraph 18 is modified to include the State’s new Project Manager’s information:

Direct all inquiries to the Project Manager:

Department of Water Resources
Narges Abbasian Genaveh
Engineer, Water Resources
South Central Region Office
691 N. Laverne Ave. Suite 104
Fresno, CA 93727
Phone: (559) 285-3479
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Email: [email protected]

4. Exhibit C (Schedule) is replaced in its entirety with the revised Exhibit C attached hereto.

All other terms and conditions of the original Agreement remain unchanged.

INWITNESS WHEREOF,the parties hereto have executed this Amendment.

STATE OF CALIFORNIA CITY OF FOWLER

DEPARTMENT OF WATER RESOURCES
_____________________________ ______________________________ Arthur Hinojosa, Manager Thomas Gaffery, City Manager
Division of Regional Assistance Email: [email protected] Date__________________________ Date __________________________ Approved as to Legal Form and Sufficiency:
_____________________________
Robin Brewer, Assistant General Counsel
Office of General Counsel
Date__________________________
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12/20/2024
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Agreement No. 4600015027Am. 1

Exhibit C
Schedule
Task Start Date End Date
Task 1 – Project Administration 04/29/2022 12/31/2025
Task 2 – CEQA Documentation and Permitting 11/30/2022 12/31/2025 Task 3 – Design and Engineering Services 11/30/2022 12/31/2025 Task 4 – Construction 08/01/2023 12/31/2025
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Agreement No. 4600015027 Am.5

FUNDING AGREEMENT NO. 4600015027
AMENDMENT 5

BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES

AND CITY OF FOWLER

A PART OF THE SMALL COMMUNITY DROUGHT RELIEF PROGRAM

PURSUANT TO
THE BUDGET ACT OF 2021 AS AMENDED (STATS. 2022, CH. 44, § 25)

FOR THE

CITY OF FOWLER DROUGHT RESILIENCY PROJECT
On February 24, 2023, the State of California, the Department of Water Resources (hereinafter called the State), and the City of Fowler (hereinafter called the Grantee) entered into Agreement No. 4600015027 (Agreement) for the purpose of assisting in the financing the City of Fowler Drought Resiliency Project (Project). On December 20, 2024, the Agreement was amended (Amendment 1) to update Paragraph 2, Term of Funding Agreement, Paragraph 9, Method of Payment, Paragraph 18, Project Representatives, and Schedule (Exhibit C). On April 17, 2025, the Agreement was amended again (Amendment 2) to update Paragraph 3, Project Cost, Paragraph 4, Funding Amount, and to modify the Budget (Exhibit B). On December 7, 2025, the Agreement was amended (Amendment 3) again to update Paragraph 2, Term of Funding Agreement, Paragraph 18, Project Representatives, and Schedule (Exhibit C). On February 2, 2026, the Agreement is hereby amended again (Amendment 4) to update Paragraph 2, Term of Funding Agreement, and Schedule (Exhibit C). On ________, the Agreement is hereby amended one more (Amendment 5) to update Paragraph 2, Term of Funding Agreement, update Paragraph 3, Project Cost, Paragraph 4, Funding Amount, Paragraph 18, Project Representatives, and to modify the Budget (Exhibit B), and Schedule (Exhibit C).

The State and the Grantee hereby agree to the following modifications:

1. The last sentence in Paragraph 2 is replaced in its entirety with: However, all work shall be completed by March 1, 2027, and no funds may be requested after May 1, 2027.

2. Paragraph 3 (Project Cost) is replaced in its entirety with: The reasonable cost of the Project is estimated to be $3,373,760.

3. Paragraph 4 (Funding Amount) is replaced in its entirety with: The maximum amount payable by the State under this Agreement shall not exceed $3,373,760.

4. Paragraph 18 is modified to update the State’s Project Representative’s information:
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Department of Water Resources
Julé Rizzardo
Manager, Division of Regional Assistance
715 P Street
Sacramento, CA 95814
Phone: (916) 653-5791
Email: [email protected]

5. Exhibit B (Budget) is replaced in its entirety with the revised Exhibit B attached hereto.

6. Exhibit C (Schedule) is replaced in its entirety with the revised Exhibit C attached hereto.

All other terms and conditions of the original Agreement and Amendments 1 through 4 remain unchanged.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment.

STATE OF CALIFORNIA CITY OF FOWLER
DEPARTMENT OF WATER RESOURCES _____________________________ ______________________________ Julé Rizzardo, Manager Michael Reid, City Manager
Division of Regional Assistance Email: [email protected] Date__________________________ Date __________________________ Approved as to Legal Form and Sufficiency: _____________________________ Robin Brewer, Assistant General Counsel Office of General Counsel
Date__________________________
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Exhibit B
BUDGET
All work associated with the Project must be completed prior to payment of retention. The Grantee is required to maintain all financial documents related to the Project in accordance with Exhibit G (State Audit Document Requirements for Grantees).

Task Funding
Amount
Task 1 – Project Administration $51,900
Task 2 – CEQA Documentation and Permitting $54,600
Task 3 – Design and Engineering Services $362,200
Task 4 – Construction $2,905,060
Grand Total $3,373,760
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Exhibit C

SCEDULE
Task Start Date End Date
Task 1 – Project Administration 04/29/2022 03/01/2027
Task 2 – CEQA Documentation and Permitting 11/30/2022 03/01/2027 Task 3 – Design and Engineering Services 11/30/2022 03/01/2027 Task 4 – Construction 08/01/2023 03/01/2027
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Agreement No. 4600015027Am.3

FUNDING AGREEMENT NO. 4600015027
AMENDMENT 3

BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES

AND CITY OF FOWLER

A PART OF THE SMALL COMMUNITY DROUGHT RELIEF PROGRAM

PURSUANT TO
THE BUDGET ACT OF 2021 AS AMENDED (STATS. 2022, CH. 44, § 25)

FOR THE

CITY OF FOWLER DROUGHT RESILIENCY PROJECT
On February 24, 2023, the State of California, the Department of Water Resources (hereinafter called the State), and the City of Fowler (hereinafter called the Grantee) entered into Agreement No. 4600015027 (Agreement) for the purpose of assisting in the financing the City of Fowler Drought Resiliency Project (Project). On December 20, 2024, the Agreement was amended (Amendment 1) to update Paragraph 2, Term of Funding Agreement, Paragraph 9, Method of Payment, Paragraph 18, Project Representatives, and Schedule (Exhibit C). On April 17, 2025, the Agreement is hereby amended again (Amendment 2) to update Paragraph 3, Project Cost, Paragraph 4, Funding Amount, and to modify the Budget (Exhibit B). On ________, the Agreement is hereby amended again (Amendment 3) to update Paragraph 2, Term of Funding Agreement, Paragraph 18, Project Representatives, and Schedule (Exhibit C).

The State and the Grantee hereby agree to the following modifications:

1. The last sentence in Paragraph 2 is replaced in its entirety with: However, all work shall be completed by February 27, 2026, and no funds may be requested after April 17, 2026.

2. Paragraph 18 is modified to include the City of Fowler’s new Authorized Representative’s information:

City of Fowlerp
Micheal Reid
City Manager
128 S. 5th Street
Fowler, CA 93625
Phone: (559) 834-3113
Email: [email protected]

3. Exhibit C (Schedule) is updated to reflect the changes to the Term of Funding Agreement.

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All other terms and conditions of the original Agreement, Amendment 1, and Amendment 2 remain unchanged.

IN WITNESS WHEREOF,the parties hereto have executed this Amendment.

STATE OF CALIFORNIA CITY OF FOWLER

DEPARTMENT OF WATER RESOURCES
_____________________________ ______________________________ Arthur Hinojosa, Manager Michael Reid, City Manager
Division of Regional Assistance Email: [email protected] Date__________________________ Date __________________________ Approved as to Legal Form and Sufficiency:
_____________________________
Robin Brewer, Assistant General Counsel
Office of General Counsel
Date__________________________
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11/7/2025
For
11/7/2025
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Exhibit C

SCHEDULE
Task Start Date End Date
Task 1 – Project Administration 04/29/2022 02/27/2026
Task 2 – CEQA Documentation and Permitting 11/30/2022 02/27/2026 Task 3 – Design and Engineering Services 11/30/2022 02/27/2026 Task 4 – Construction 08/01/2023 02/27/2026
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Section , Item E

FUNDING AGREEMENT NO. 4600015027
AMENDMENT 2

BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES

AND CITY OF FOWLER

A PART OF THE SMALL COMMUNITY DROUGHT RELIEF PROGRAM

PURSUANT TO
THE BUDGET ACT OF 2021 AS AMENDED (STATS. 2022, CH. 44, § 25)

FOR THE

CITY OF FOWLER DROUGHT RESILIENCY PROJECT
On February 24, 2023, the State of California, the Department of Water Resources (hereinafter called the State), and the City of Fowler (hereinafter called the Grantee) entered into Agreement No. 4600015027 (Agreement) for the purpose of assisting in the financing the City of Fowler Drought Resiliency Project (Project). On December 20, 2024, the Agreement was amended (Amendment 1) to update Paragraph 2, Term of Funding Agreement, Paragraph 9, Method of Payment, Paragraph 18, Project Representatives, and Schedule (Exhibit C). On ________, the Agreement is hereby amended again (Amendment 2) to update Paragraph 3, Project Cost, Paragraph 4, Funding Amount, and to modify the Budget (Exhibit B).

The State and the Grantee hereby agree to the following modifications:

1. Paragraph 3 (Project Cost) is replaced in its entirety with: The reasonable cost of the Project is estimated to be $3,325,425.

2. Paragraph 4 (Funding Amount) is replaced in its entirety with: The maximum amount payable by the State under this Agreement shall not exceed $3,325,425.

3. Exhibit B (Budget) is updated to reflect the funding increase.

All other terms and conditions of the original Agreement and Amendment 1 remain unchanged.

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INWITNESS WHEREOF,the parties hereto have executed this Amendment.

STATE OF CALIFORNIA CITY OF FOWLER

DEPARTMENT OF WATER RESOURCES
_____________________________ ______________________________ Arthur Hinojosa, Manager Michael Reid, Interim City Manager Division of Regional Assistance Email: [email protected] Date__________________________ Date __________________________ Approved as to Legal Form and Sufficiency:
_____________________________
Robin Brewer, Assistant General Counsel
Office of General Counsel
Date__________________________
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4/17/2025
4/17/2025
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Exhibit B
BUDGET
All work associated with the Project must be completed prior to payment of retention. The Grantee is required to maintain all financial documents related to the Project in accordance with Exhibit G (State Audit Document Requirements for Grantees).

Task Funding
Amount
Task 1 – Project Administration $51,900
Task 2 – CEQA Documentation and Permitting $54,600
Task 3 – Design and Engineering Services $362,200
Task 4 – Construction $2,856,725
Grand Total $3,325,425
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Section 10, Item E
Agreement No. 4600015027Am. 2

FUNDING AGREEMENT NO. 4600015027
AMENDMENT 4

BETWEEN THE STATE OF CALIFORNIA DEPARTMENT OF WATER RESOURCES

AND CITY OF FOWLER

A PART OF THE SMALL COMMUNITY DROUGHT RELIEF PROGRAM

PURSUANT TO
THE BUDGET ACT OF 2021 AS AMENDED (STATS. 2022, CH. 44, § 25)

FOR THE

CITY OF FOWLER DROUGHT RESILIENCY PROJECT
On February 24, 2023, the State of California, the Department of Water Resources (hereinafter called the State), and the City of Fowler (hereinafter called the Grantee) entered into Agreement No. 4600015027 (Agreement) for the purpose of assisting in the financing the City of Fowler Drought Resiliency Project (Project). On December 20, 2024, the Agreement was amended (Amendment 1) to update Paragraph 2, Term of Funding Agreement, Paragraph 9, Method of Payment, Paragraph 18, Project Representatives, and Schedule (Exhibit C). On April 17, 2025, the Agreement is hereby amended again (Amendment 2) to update Paragraph 3, Project Cost, Paragraph 4, Funding Amount, and to modify the Budget (Exhibit B). On December 7, 2025, the Agreement was amended (Amendment 3) to update Paragraph 2, Term of Funding Agreement, Paragraph 18, Project Representatives, and Schedule (Exhibit C). On ________, the Agreement is hereby amended again (Amendment 4) to update Paragraph 2, Term of Funding Agreement, and Schedule (Exhibit C).

The State and the Grantee hereby agree to the following modifications:

1. The last sentence in Paragraph 2 is replaced in its entirety with: However, all work shall be completed by December 31, 2026, and no funds may be requested after March 31, 2027.

2. Exhibit C (Schedule) is updated to reflect the changes to the Term of Funding Agreement.

All other terms and conditions of the original Agreement and Amendments 1 through 3 remain unchanged.

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Agreement No. 4600015027Am.4

INWITNESS WHEREOF,the parties hereto have executed this Amendment.

STATE OF CALIFORNIA CITY OF FOWLER

DEPARTMENT OF WATER RESOURCES
_____________________________ ______________________________ Arthur Hinojosa, Manager Michael Reid, City Manager
Division of Regional Assistance Email: [email protected] Date__________________________ Date __________________________ Approved as to Legal Form and Sufficiency:
_____________________________
Robin Brewer, Assistant General Counsel
Office of General Counsel
Date__________________________
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For
2/20/2026
2/20/2026
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Agreement No. 4600015027Am.4

Exhibit C

SCEDULE
Task Start Date End Date
Task 1 – Project Administration 04/29/2022 12/31/2026
Task 2 – CEQA Documentation and Permitting 11/30/2022 12/31/2026 Task 3 – Design and Engineering Services 11/30/2022 12/31/2026 Task 4 – Construction 08/01/2023 12/31/2026
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Section 10, Item E
Agreement No. 4600015027Am.4

CITY COUNCIL MEETING

REPORT TO THE CITY COUNCIL
DATE: October 6, 2026
FROM: Eric M. Rocha, Assistant City Manager
SUBJECT: APPROVE Resolution No. 2860 acknowledging acceptance of a report on the City’s compliance with SB 1205 and California Health & Safety Code 13146.4
Staff Recommendation: Approve Resolution No. 2860

EXECUTIVE SUMMARY
Annually, the City is required to conduct inspections of all public and private schools, hotels, motels, lodging houses, and apartment/condominium buildings, in accordance with California Health and Safety Code Section 13146.2 and 13146.3.

BACKGROUND
On September 27, 2018, California Senate Bill 1205 (SB1205) became effective, and added a new section to the California Health and Safety Code which affects every fire department or fire district in the State. Existing state law requires every fire department or district providing fire protection services to inspect every building used as a public or private school annually.

This same annual inspection requirement is applicable to hotels, motels, lodging houses, and apartment houses.

With the signing of SB 1205, the California Health and Safety Code was amended by adding Section 13146.4, that requires that all fire departments required to perform annual inspections pursuant to Sections 13146.2 and 13146.3 shall report annually to its administrating authority its compliance with Sections 13146.2 and 13146.3.

The purpose of annual fire inspections is to mitigate known hazards, reduce risk to the community and ensure reasonable compliance with the California Fire Code.

In fiscal year 2025/26, Fresno County Fire Protection District, on behalf of the City of Fowler, completed the annual inspection of 100% (7 of 7) Group E occupancies, buildings, structures and/or facilities, and 100% (27 of 27) Group R occupancies, buildings, structures and/or facilities.
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The acceptance of this compliance report and the recommended Resolution fulfill the statutory requirements contained in California Health and Safety Code Section 13146.2, 13146.3 and 13146.4, as amended by SB1205.

PUBLIC NOTICE
This item does not require a public hearing and was noticed as a part of the City Council Agenda.

ENVIRONMENTAL REVIEW
This action does not constitute a “project” pursuant to the California Environmental Quality Act.

GENERAL PLAN CONSISTENCY
This action is consistent with:

Goal SAF-4
Minimize risk from hazardous materials, flooding, seismic, and fire hazards.

Policy SAF-29
Promote education programs related to fire safety, fire prevention, and emergency preparedness.

FISCAL IMPACT
There is no fiscal impact with the filing and acceptance of this report.

PROCUREMENT PROCESS
No procurement is associated with this action.

CONFLICT OF INTEREST
Staff is not aware of any conflicts of interest.

Attachments
- Resolution No. 2860
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Section 10, Item F
RESOLUTION NO. 2860

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOWLER

ACKNOWLEDGING RECEIPT OF A REPORT ON THE CITY'S COMPLIANCE WITH SB1205 AND SECTION 13146.4 OF THE CALIFORNIA HEALTH AND SAFETY CODE.

WHEREAS, Section 13146.4 was added to the California Health & Safety Code in 2018, and became effective September 27, 2018; and
WHEREAS, California Health & Safety Code Sections 13146.2 and 13146.3 requires all fire departments, including the City of Fowler, that provide fire protection services to perfonn annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards, as provided and,
WHEREAS, the City intends this Resolution to fulfill the requirements of the California Health & Safety Code regarding acknowledgment of the City's compliance with California Health and Sections 13146.2 and 13146.3.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fowler expressly acknowledges the measure of compliance of the City with California Health and Safety Code Sections 13146.2 and 13146.3 in the jurisdictional area of the City, as follows:

A. EDUCATIONAL GROUP E OCCUPANCIES:
• Educational Group E occupancies are generally those public and private schools, used by more than six persons at any one time for educational purposes through the 12th grade.
• Within the City, there lie seven (7) known Group E occupancies, buildings, structures and/or facilities.
• During fiscal year 2025/26, the City completed the annual inspection of seven (7) Group E occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.

B. RESIDENTIAL GROUP R OCCUPANCIES:
• Residential Group R occupancies, for the purposes of this resolution, are generally those occupancies containing sleeping units, and include hotels, motels, apartments (three units or more), etc. as well as other residential occupancies(including a number of residential care facilities). These residential care facilities have a number of different sub-classifications, and they may contain residents or clients that have a range of needs, including those related to custodial care, mobility impairments, cognitive disabilities, etc. The residents may also be non-ambulatory or bedridden.
• Within the City, there lie twenty-seven (27) known Group R (and their associated sub- categories) occupancies of this nature. • During fiscal year 2025/26, the city completed the annual inspection of twentyseven (27) Group R occupancies, buildings, structures and/or facilities. This is a compliance rate of 100% for this reporting period.
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C. INSTITUTIONAL GROUP I OCCUPANCIES:
• Institutional Group I occupancies, for the purpose of this resolution, are generally care or supervision to persons who are incapable of self-preservation without physical assistance or in which persons are detained for penal or c01Tectional purposes or in which the liberty of the occupants is restricted. • Within the City, there are no known Group I occupancies, buildings, structures or facilities.

PASSED, APPROVED AND ADOPTED this 6th day of October 2026, at a regular meeting of the Fowler City Council by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

Juan Mejia, Mayor
ATTEST:

Angela Vasquez, City Clerk
APPROVED AS TO FORM:

By:__________________________
ROY C. SANTOS, City Attorney
Burke, Williams & Sorensen, LLP
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