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If the benefit/cost ratio calculated in the Water Audit Report is ].ess <br />than 1.0, the grant will be terminated and the Grantee will be reimbursed for <br />the expended Eligible Project Cost of the water audit up to a maximum ~n~Dunt <br />allocated in Section 5 of this Contract. <br /> <br /> Tf the benefit/cost ratio calculated in the approved Water Audit <br />Report is ~t least 1.0, and if the State has made written authorization to <br />continue the project, then the Grantee shall carry out the approved Leak <br />Detection ~nd Repair Plan. <br /> <br />Task II -- Conduct Leak Detection Surveys <br /> <br /> Grantee shall conduct leak detection surveys for areas of potential <br />leakage identified in the approved "Leak Detection and Repair Plan". DWR will <br />conduct a technology seminar for Grantees on Ieak detection equipment and <br />techniques. Major elements of the leak detection survey include: <br /> <br />Engage a consultant to perform leak detection, or establish a leak de- <br />tection crew to perform leak detection (or combination thereof). <br /> <br />Purchase or otherwise provide the equipment needed to conduct leak . <br />detection for those crews performing the leak detection work. <br /> <br />Conduct leak detection surveys according to the approved "Leak Detec- <br />tion and Repair Plan" prepared in Task I. <br /> <br />Task III -- Repair Leaks <br /> <br /> Repair of a31 leaks will be at Grantee expense. Leak repair is NOT a <br />grant-eligible expense. Grantees are obligated to repair all main, service <br />lateral, hydrant, meter box valve and blowoff leaks within 30 calendar days <br />after detection with the following exceptions· <br /> <br />The Grantee's obligation to repair leaks is limited to a maximum of <br />in leak repair costs for each ~1,O00 in grant funds received. However, <br />Grantees are encouraged to carry out repairs beyond this maximum at their <br />option. <br /> <br />Upon written approval of the State, main and service lateral leaks do not <br />have to be repaired if the Grantee chooses to replace the entire main or <br />service lateral within three years. <br /> <br />Leaks on the customers' side of the water system do not have to be repaired <br />although the Grantee may offer that service to the customer. <br /> <br />If the Grantee can substantiate in writing to the State that a repair is <br />not cost effective, a waiver of repair can be approved in writing by the <br />State. <br /> <br />5 Contract B-550,~-~ <br /> <br /> <br />