Section 497.9 - Grant Contract Requirements(a) Before the Department will enter into a grant contract, the sponsor shall develop a work plan satisfactory to the Department. To assist the sponsor to develop a work plan, the Department may visit the project site to assess its conditions and needs and may confer with the project sponsor, project supporters, and other local officials, agencies, and organizations with an interest in the project. The Department may convey recommendations and information obtained from these efforts to the sponsor. The work plan shall reflect the specific schedule and components of the project. The sponsor may revise the work plan from time to time during project execution with the approval of the Department.(b) The project sponsor, and all members of a joint sponsoring organization, shall provide copies of resolutions from their organizations accepting the grant and authorizing specific individuals to sign the contract on behalf of each.(c) The Department may enter into a contract before the sponsor has obtained all applicable permits, but may not disburse any funds to be used for project construction until the sponsor has complied with all applicable federal, State, and local laws, rules and regulations, and obtained all required permits,(d) If a contract is not signed within six months of the date the grant is awarded, the grant may be withdrawn.(e) All contracts shall be signed by the sponsor, and, if the sponsor is a joint sponsoring organization, all the member organizations. If the sponsor is a nonprofit organization that is not incorporated, it must designate a fiscal agent satisfactory to the Department to act on its behalf, and provide evidence that the fiscal agent agrees to so act.(f) The contract shall require the sponsor to make a progress report to the Department, as described in Section 497.10, as a prerequisite to each grant disbursement. The Department will monitor progress and may withhold up to 100 percent of the currently requested grant payment if progress is not satisfactory.(g) The contract shall require the sponsor to submit a written completion report as described in Section 497.10.(h) The contract shall provide that during planning and construction the Department may inspect the project at any reasonable time to ensure it is being carried out in accordance with the work plan, and after completion to ensure that it is being properly maintained.(i) The contract shall specify the percentage of each payment, not to exceed 10 percent, to be withheld to ensure completion of the project.(j) The contract shall either define project completion milestones, at which time payment of grant funds will be made for completed work, or state that payment will be made quarterly in arrears upon receipt of invoices.(k) The contract shall require the sponsor to prepare a maintenance plan as described in Section 497.11.(l) The contract shall provide, but not be limited to the following: (1) The sponsor will assure that the project will be operated, maintained, repaired, replaced and rehabilitated until the Department determines that it is no longer necessary.(2) The sponsor will perform the maintenance with its own forces, or will employ another agency or organization satisfactory to the Department.(3) The sponsor will control encroachments on the project facilities and properties, whether unauthorized or permitted, and will not permit any encroachments that will adversely affect the function or maintenance of the project facilities and properties.(4) The Department shall have access at all times to monitor the effectiveness of maintenance of the completed facilities and the properties for which interests were purchased.(5) If the Department deems maintenance measures, repairs, replacements or rehabilitation necessary, and the sponsor does not, in the opinion of the Department, provide these services promptly, the Department may upon 30 days' written notice enter upon the property and perform the required work, and bill the sponsor and the sponsor will pay the cost of any work so performed.(6) The sponsor will hold and save the State free and harmless from any and all claims or damages arising out of or in connection with the planning, design, construction, operation, maintenance, repair, replacement, or rehabilitation of the project facilities and properties.Cal. Code Regs. Tit. 23, § 497.9
1. New section filed 8-19-2003; operative 8-19-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 34). Note: Authority cited: Sections 8300, 12580 and 79044.9, Water Code. Reference: Section 79044(a), Water Code.
1. New section filed 8-19-2003; operative 8-19-2003 pursuant to Government Code section 11343.4 (Register 2003, No. 34).