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Attachment 5 STATE OF CALIFORNIA Department of Boating and Waterways 2000 Evergreen Street #100 Sacramento, CA 95815 EXHIBIT B Abandoned Watercraft Abatement Fund -Grant Program 1. NEEDS AND OBJECTIVES OF DBW Pursuant to its authority under Harbors and Navigation Code section 525, the Department of Boating and Waterways ( "DBW ") wishes to contract with Grantee for the removal and disposal of abandoned, wrecked or dismantled vessels, or parts thereof, or any other partially submerged objects (hereinafter "eligible water hazards ") which pose a substantial hazard to navigation within Grantee's jurisdiction as listed on the Hazard Removal List Worksheet, found in Exhibit A. 2. WATER HAZARDS ELIGIBLE FOR REMOVAL AND DISPOSAL The funds provided under this Agreement shall be used for the removal, storage and disposal of eligible water hazards. For purposes of this Agreement, "abandoned" is defined in Harbors and Navigation Code section 522(a): "Any hulk, derelict, wreck, or parts of any ship, vessel, or other watercraft sunk, beached, or allowed to remain in an unseaworthy or dilapidated condition upon publicly owned submerged lands, salt marsh, or tidelands within the corporate limits of any municipal corporation or other public corporation or entity having jurisdiction or control over those lands, without its consent expressed by resolution of its legislative body, for a period longer than 30 days without a watchman or other person being maintained upon or near and in charge of the property, is abandoned property ". DBW has determined that the vessels /water hazards listed in Exhibit A are eligible for funding under this Agreement. Eligibility for funding of additional vessels /water hazards under this agreement shall require the prior approval of DBW. All requests must be submitted in writing including a revised Water Hazard Removal List accompanied by photos that clearly identify the vessel(s) /water hazard(s). The funds provided under this Agreement shall not be utilized for abatement, removal, storage, or disposal of commercial vessels. Commercial vessels include those vessels for which the most recent registration or documentation was commercial, even though that registration or documentation may have lapsed. If Grantee is reimbursed for the costs related to salvage and storage of, an eligible water hazard by the registered or legal owner or other person known to have an interest in the water hazard, then the water hazard shall no longer be eligible for funding under this Agreement. Grantee shall notify DBW in writing of such reimbursement and shall return all fund disbursed by DBW to Grantee with respect to such water hazard immediately. 2 14919