SANTA ANA WATERSHED PROJECT AUTHORITY (SAWPA)

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EXHIBIT 5 SECTION 5. DISBURSEMENT Grant funds will be disbursed in accordance with the disbursement provisions of the Grant Agreement. SAWPA will disburse grant funds received from DWR to Sub -Grantee within 30 days of receipt of grant funds, except as described in Section 14. Withholding of Grant Disbursements of this Contract. Retention is stipulated in Exhibit D, Item 36 of the Grant Agreement. SECTION 6. FISCAL MANAGEMENT SYSTEMS AND ACCOUNTING STANDARDS The Sub -Grantee agrees that, at a minimum, its fiscal control and accounting procedures shall be sufficient to permit tracking of grant funds to a level of expenditure adequate to establish that such funds have not been used in violation of State law or this Contract. The Sub -Grantee shall maintain separate Project accounts in accordance with generally accepted accounting principles and practices, consistently applied. SECTION 7. TERM This Contract shall not be effective until it has been fully executed by both parties. The Term of this Contract shall be the same as the Term of the Grant Agreement, unless sooner terminated pursuant to the provisions of this Contract or the Grant Agreement. SECTION 8. COVENANT TO OPERATE AND MAINTAIN PROJECT FACILITIES The Sub -Grantee shall properly staff, operate and maintain all portions of the Project during the Projecfs useful life and in accordance with this Contract, the Grant Agreement, and all applicable state and federal laws, rules and regulations. In the event that the Sub -Grantee assigns or transfers all or any portions of the Project to another entity, the Sub -Grantee shall be responsible to ensure that the assignee or transferee of all or any portions of the Project shall properly staff, operate and maintain all portions of the Project during its useful life and in compliance with this Contract, the Grant Agreement, and all applicable state and federal laws, rules and regulations. The Parties to this Contract understand and agree that this covenant shall survive the expiration or termination of this Contract. The Parties further understand and agree that this covenant is for the benefit of SAWPA and DWR and shall be enforceable during the useful life of the Project facilities. Sub -Grantee shall prepare and maintain the Project Performance Monitoring Plan ("PPMP") required by the Grant Agreement. DWR and SAWPA shall approve the PPMP prior to the disbursement of grant funds for construction or monitoring activities. Sub -Grantee shall not abandon, substantially discontinue use of, lease, or dispose of the Project, including its construction, or any significant part or portion thereof, during the useful life of the Project without SAWPA's and DWR's prior written approval. SECTION 9. ASSIGNMENT Neither this Contract, nor any duties or obligations under this Contract, nor any of the Project facilities referenced in this Contract shall be assigned by any Party without the prior written consent of the other Party. Should an assignment or transfer occur, whenever SAWPA or the Sub -Grantee are named or referred to herein, such reference shall be deemed to include the successor to the powers, duties