CITY COUNCIL REGULAR MEETING AGENDA PACKET

4141352.1 6 impacts, if any, to the sustainability of the groundwater basin from implementation of the Project. The results of this groundwater modeling will be factored into the technical feasibility review performed under this agreement. 2) City Distribution Modeling: As part of the Project concept, the Parties anticipate that the City’s GPQ will be delivered by Zone 7 to the City through City turnouts. Since the City’s GPQ currently is introduced directly into the distribution system through its wells, the Project will result in higher flowrates through City turnouts and Zone 7’s transmission system. The City will perform hydraulic modeling of its distribution system to determine required turnout and distribution system improvements and costs because of this Project. To perform this modeling, Zone 7 will assist and provide pressure assumptions at each turnout. The City will utilize the results of this modeling to help determine the feasibility of the Project. − Based on the results of the scope of work from Phase I, both parties will make a recommendation on project feasibility. If both parties determine the Project to be feasible, the parties will work in good faith to reach an agreement to proceed into Phase II and III, said agreement will need to be authorized by the respective governing bodies prior to proceeding. If the parties cannot reach an agreement to proceed into Phase II and III, both parties will have equal rights to the work product produced by the contractor/ consultant in Phase I of the Project, and to proceed with completing subsequent phases of the Project unilaterally. 3. Cost-sharing: Zone 7 and the City shall share the cost of Phase I equally (50/50 cost sharing) for the contractor / consultant agreements that include the following with a not-to-exceed (NTE) limit of one million dollars for each of the Parties and for a total of two million dollars for the total cost of Phase I: A. Contractor(s) agreement to perform exploratory test drilling B. Consultant(s) agreement to perform technical feasibility review C. Agreements A, and B, shall include the terms set forth in the attached Exhibit A, attached hereto and incorporated herein. Agreements with consultants and contractors listed above will require authorization by Zone 7’s Board of Directors. The City Council delegates authority for Zone 7 to enter into agreements with consultants and contractors listed herein only after approval by the Steering Committee, which shall be confirmed in writing by the City’s Director of Public Works. Zone 7 will immediately notify and seek City’s concurrence for claim notices by contractors and consultants. Any consultant / contractor agreements, change orders, or amendments that exceed the not-to-exceed limit of this agreement require approval by both governing bodies prior to execution and a written amendment to this agreement Each agency will contribute its own staff time and resources for tasks and activities that are self- performed including but not limited to: A. Zone 7 – Project management, construction management, contractor/consultant management, reports review and analysis, preparation of recommendations to the Steering Committee and Board of Directors, and any work necessary to deliver Phase I of the Project. B. City – Community engagement, report review and analysis, encroachment permits, granting of rights of way, and any support work necessary to deliver Phase I of the Project. Page 177 of 248