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subcontracts to perform work under the Agreement. <br /> 4.13 No Third Party Rights. <br /> The parties to this Agreement do not create rights in, or grant remedies to, any third party as a beneficiary of this <br /> Agreement, or of any duty, covenant. obligation or undertaking established herein. <br /> 4.14 Operation and Maintenance; Insurance. <br /> The Contractor agrees to properly staff, operate and maintain all portions of the Project for at least 20 years from <br /> the project completion date (see Exhibit A) years or the design life of the devices in accordance with all <br /> applicable state and federal laws, rules and regulations. The Contractor certifies that it has in place and will <br /> maintain a reserve fund for this purpose. See Exhibit D -1. <br /> The Contractor will procure and maintain or cause to be maintained insurance on the System with responsible <br /> insurers, or as part of a reasonable system of self - insurance, in such amounts and against such risks (including <br /> damage to or destruction of the System) as are usually covered in connection with systems similar to the System. <br /> Such insurance may be maintained by the maintenance of a self - insurance plan so long as any such plan provides <br /> for (i) the establishment by the Contractor of a separate segregated self- insurance fund funded in an amount <br /> determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the <br /> field of risk management employing accepted actuarial techniques and (ii) the establishment and maintenance of a <br /> claims processing and risk management program. <br /> In the event of any damage to or destruction of the System caused by the perils covered by such insurance, the net <br /> proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion <br /> of the System. The Contractor shall begin such reconstruction, repair or replacement as expeditiously as possible, <br /> and shall pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or <br /> replacement so that the same shall be completed and the System shall be free and clear of all claims and liens. <br /> 4.15 Permits, Subcontracting, Remedies and Debarment. <br /> The Contractor shall procure all permits and Licenses necessary to accomplish the work contemplated in this <br /> Agreement. pay all charges and fees. and give all notices necessary and incidental to the due and lawful <br /> prosecution of the work. Signed copies of any such permits or licenses shall be submitted to the Division before <br /> construction begins. <br /> Any subcontractors. outside associates, or consultants required by the Contractor in connection with the services <br /> covered by this Agreement shall be limited to such individuals or firms as were specifically identified and agreed <br /> to during negotiations for this Agreement, or as are specifically authorized by the State Water Board's Project <br /> Representative through ABAG during the performance of this Agreement. Any substitutions in, or additions to, <br /> such subcontractors, associates, or consultants, shall be subject to the prior written approval of the Division. <br /> The Contractor shall not subcontract with any party who is debarred or suspended or otherwise excluded from or <br /> ineligible for participation in federal assistance programs under Executive Order 12549, "Debarment and <br /> Suspension." The Contractor shall not subcontract with any individual or organization on USEPA's List of <br /> Violating Facilities. (40 CFR, Part 3 1.35, Gov. Code, § 4477) <br /> The Contractor certifies to the best of its knowledge and belief, that it and its principals: <br /> (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded by <br /> any federal department or agency; <br /> (b) Have not within a three (3) year period preceding this Agreement been convicted of or had a civil judgment <br /> rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to <br /> 18 <br />