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I Agreement 1312 -030 REIMBURSEMENT AGREEMENT BETWEEN THE COUNTY OF ORANGE AND THE CITY OF SANTA. ANA THIS REIMBURSEMENT AGREEMENT, numbered D12 -030, is made and entered into this ,1 G din day of () tA14s , 2012 by and between the County of Orange, hereinafter referred to as the "COUNTY ", and the City of Santa Ana, hereinafter referred to as "CITY ". RECITALS: A. The United States Environmental Protection Agency (USEPA) has established TMDLs for toxic pollutants in San Diego Creek and Newport Bay, California on June 14, 2002, and the California Regional Water Quality Control Board is developing implementation plans for each of the toxic pollutants; and B. The COUNTY, the CITY, the Orange County Flood Control District, the City of Costa Mesa, the City of Irvine, the City of Laguna Hills, the City of Laguna Woods, the City of Lake Forest, the City of Newport Beach, the City of Orange, the City of Tustin, the Irvine Ranch Water District, The Irvine Company, and Lennar Homes of California, have entered into have entered into Agreement No. D99 -128, dated July 1, 2010, for the purpose of fimding and performing studies, research, monitoring and the development and implementation of programs related to the adopted TMDLs for nutrients, fecal coliform and toxics in the San Diego Creek and Newport Bay watersheds (hereinafter "said Agreement "); and C. Said Agreement provides that the COUNTY will annually develop a scope of work and budget containing an estimate of planned expenditures for the following fiscal year, which shall be submitted to the parties for approval; and D. The approval scope of work and budget for fiscal year 2011 -2012 includes the evaluation of alternatives to the Cienega project, to comply with the selenium TMDL compliance requirements, including source control of selenium Hot Spots and construction of low -flow diversion to the sanitary sewer system. WHEREFORE, in consideration of the mutual and respective covenants and promises, and subject to all the terms and conditions hereinafter set forth, the parties hereto agree as follows: 1. OBLIGATIONS OF CITY a. CITY shall select and pay a consultant to develop a feasibility report for the identification of alternative locations, design, implementation and operation of stormwater /sanitary sewer diversion facilities to capture dry - weather selenium EXHIBIT 1 41]x?