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AHFP N0. 1318 storm drain construction. f. It is the intent of the parties hereto to comply with all applicable rules regarding the expenditure of State Gas Tax Funds. Eligibility of any storm drain item will be subject to final audit and determination by the State Controller's Office. Any future adjustment required by said Controller's Office shall be made by CITY with CITY funds, including complete refunds to COUNTY of any COUNTY gas tax funds declared by the Controller to have been expended on ineligible construction. g. Any funds spent prior to July 1', 1989 shall not be considered in the final accounting of PROJECT. 8. Funds allotted by COUNTY for PROJECT shall revert to the Arterial Highway Financing Program in the event CITY fails, for any reason, to advertise and award the contract for PROJECT prior to June 30, 1993 and CITY shalt. reimburse COUNTY for any expenditures incurred by COUNTY in connection with PROJECT. 19. This agreement shall become null and void in the event that CITY, for any reason, advertises PROJECT for bids prior to the granting of authorization to advertise by 'COUNTY in accordance with the procedures set forth in the Arterial Highway Financing Program Procedure Manual. 10. Upon acceptance of the completed AHFP PROJECT by the awarding authority or upon the contractor being relieved of the responsibility for maintaining and protecting certain portions of the work, CITY shall maintain PROJECT or such portions of the work in a manner satisfactory to COUNTY. If within ninety (90) days after receipt of notice from COUNTY that PROJECT or any Portion thereof is not being properly maintained, CITY has not remedied the conditions complained of to COUNTY's satisfaction, COUNTY may withhold the programming or approval of further AHFP projects of CITY until PROJECT shall have been put in a condition of maintenance satisfactory to COUNTY. The maintenance referred to herein shall include not only the preservation of the general physical feature of the roadway, roadside, and surfacing, bUt also safety and regulatory' features, -devices and appurtenances built into PROJECT. 11. County -wide Extension of Arterial System. -- To promote uniformity of County Arterial Highway System with City Master Plan of Major Streets, both parties agree to continue the promulgation of the AHFP as outlined in the aforementioned Procedure Manual. IT IS MUTUALLY UNDERSTOOD AND AGREED: 1. Pursuant to and in accordance with Section 10532 of the California Government Code., in the event that this Contract involves expenditures of State funds aggregating in excess of ten thousand dollars ($10,000), the parties.shall be subject to the examination and audit of the Auditor General of the State of California for a period of three (3) years after final payment under this f Contract. 2. That neither COUNTY nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this agreement. It is also understood and agreed that, pursuant to Government Code Section 895.4, CITY shall fully Indemnify, defend and hold COUNTY harmless from any liability imposed for injury (as defined by Government Code Section 810.8), occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this agreement. 3. That neither CITY nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by COUNTY under or in connection with any work, authority or jurisdiction not delegated to CITY under this agreement. it is also understood -3-