AgdaPkt 2008-10-27 Clsd and Reg - Laserfiche WebLink

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6.3A Page 9 1. Payment of principal or interest of existing indebtedness or any interest payments, unless the debt is incurred after execution of the State Agreement, DWR agrees in writing to the eligibility of the costs for reimbursement before the debt is incurred, and the purposes for which the debt is incurred are otherwise Eligible Costs. J. Overhead not directly related to Project costs. 6. UPFRONT CONTRIBUTION OF ADMINISTRATION COSTS: BACWA, as administrator of the State Grant funds, will not provide upfront funds for the administration of the State Grant In August of 2007, BACW A invoiced each of the Participating Water Entities a proportional share of upfront costs in order to establish a fund to pay for administration costs incurred in the development of the State Agreement between BACW A and DWR, the development of the Implementation Agreements by and among BACW A and each of the Participating Water Entities, and the establishment of an accounting system. Each of the Participating Water Entities was obligated to provide BACW A their proportionate share (which shall be calculated as the ratio of the State Grant Amount to the total of the State Grant funds, i.e., Project Sponsor's share of the State Grant funds divided by the total of the State Grant funds) of $80,000.00 in estimated administration costs to begin implementation of the State Agreement. Project Sponsor has already provided BACWA an up front payment of $5,000.00, which represents Project Sponsor's share of the $80,000.00 upfront administration costs. The proportion of Project Sponsor's share of the upfront administration costs to all upfront administration costs shall be Project Sponsor's "Proportionate Share", which such Proportionate Share shall be used to determine Project Sponsor's share of future administration costs billed by BACW A, as described in Paragraph 7, below. 7. ADMINISTRATION COSTS IN GENERAL: The upfront administration costs already invoiced and discussed in Paragraph 6, above, are estimated to be sufficient to establish a fund from which BACW A can draw to pay for administration costs until such time as it can be replenished through reimbursements provided by DWR through the State Agreement. On a quarterly basis, BACW A will request a reimbursement under the State Agreement for administration and legal costs incurred by BACW A. ("Legal costs" are deftned to include the cost of legal representation incurred by BACW A when entering into the State Agreement with DWR, the costs of BACW A's legal representation in developing the Implementation Agreements between BACW A and the Participating Water Entities, and the cost of BACW A's legal representation in answering questions that may arise during course of performance of the State Agreement and/or the Implementation Agreements.) If at any time it appears that there may be insufficient funds to carry out the administration of the State Grant, BACW A will send out additional invoices to each of the Participating Water Entities. Project Sponsor agrees to pay BACW A its Proportionate Share of such costs when they are billed. BACW A agrees that under no circumstances will the costs of administration services provided by BACW A be greater than the cost {00907ce21 5