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Grant Agreement No. 46000XXXX
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administering this Grant 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. If an audit reveals any impropriety, the Bureau of State Audits or the State Controller’s
Office may conduct a full audit of any or all of the Funding Recipient’s activities. (Wat. Code, § 79708,
subd. (c).)
D.6) BUDGET CONTINGENCY: If the Budget Act of the current year covered under this Grant Agreement
does not appropriate sufficient funds for this program, this Grant 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 Grant Agreement. In this event, State shall have no liability to pay any funds
whatsoever to Grantee or to furnish any other considerations under this Grant Agreement and Grantee
shall not be obligated to perform any provisions of this Grant Agreement. Nothing in this Grant
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 Grant 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 Grant Agreement with no liability occurring to State, or offer a
Grant Agreement amendment to Grantee to reflect the reduced amount.
D.7) CEQA: Activities funded under this Grant 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 Grant 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 the Grant Agreement subject to a CEQA
document shall not proceed until and unless approved by State Project Manager. 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 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 shall comply with all applicable laws and
regulations regarding securing competitive bids and undertaking competitive negotiations in Grantee’s
contracts with other entities for acquisition of goods and services and construction of public works with
funds provided by State under this Grant Agreement.

Yucaipa Groundwater Sustainability Agency - March 14, 2018 - Page 18 of 226