SANTA ANA WATERSHED PROJECT AUTHORITY (SAWPA)

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EXHIBIT 5 If the Sub -Grantee proceeds to construction of such facilities, the final grant amount will be determined in accordance with the provisions of this Contract. If the Sub -Grantee fails or refuses to proceed with or complete the construction of facilities, SAWPA shall consider such failure or refusal to be a material violation and breach of this Contract. SAWPA shall have all rights and remedies as are otherwise available to it for breach of this Contract by the Sub - Grantee. If actual Project costs exceed the Project's estimated reasonable cost, SAWPA shall have no obligation to provide grant funds for such exceedence. Eligible Project costs include the reasonable costs of studies, engineering, design, land and easement acquisition, legal fees, preparation of environmental documentation, environmental mitigations, monitoring, project construction, and any other task set forth in Exhibit A of the Grant Agreement. Reimbursable administrative expenses are the necessary costs incidental but directly related to the Project. Costs not eligible for reimbursement or not eligible to be counted as local match include, but are not limited to: • Costs for work performed before the dates specified below. • Costs for preparing and filing a grant application. • Operation and maintenance costs, including post -construction performance and monitoring costs. • Purchase of equipment that is not an integral part of the Project. • Establishing a reserve fund. • Purchase of water supply. • Replacement of existing funding sources for on -going programs. • Support of existing agency requirements and/or mandates. • Purchase of land in excess of the minimum required acreage necessary to operate as an integral part of the Project, as set forth and detailed by engineering and feasibility studies, or acquisition of land by eminent domain. • Overhead and indirect costs not directly related to Project costs, such as generic overhead or markup. • Travel costs and per diem costs, unless allowed under Exhibit D, Item 46 of the Grant Agreement. • Mitigation for environmental impacts not resulting from implementation of the Project funded by this program. Work performed after January 1, 2015, are eligible to be counted as local match. Work performed after June 2, 2020, are eligible for grant reimbursement. SECTION 4. SCOPE OF WORK AND COMPLETION OF PROJECT The Scope of Work is described in Exhibit A of the Grant Agreement. The Parties understand that time is of the essence and agree to expeditiously proceed with and complete the Project.