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5105 <br />b) Notify appropriate officials of SUBRECIPIENT and CITY officials of <br />any criminal drug statute conviction for a violation occurring in the workplace not <br />later than five days after such conviction. <br />3. The CITY and the United State Department of Housing and Urban <br />Development will be notified within ten days after receiving notice of any such violation. <br />4. Within 30 days of receiving such notice, appropriate personnel action will be <br />taken against such employee, up to and including termination. <br />Each such employee shall be required to participate satisfactorily in a drug abuse <br />assistance or rehabilitation program approved for such purposes by a federal, state or local health, <br />law enforcement, or other appropriate agency. <br />IL CITY'S OBLIGATIONS <br />A. Payment of Funds. Upon execution of this Agreement by SUBRECIPIENT, CITY shall <br />pay to SUBRECIPIENT from CDBG funds, when, if and to the extent received from HUD, for <br />CITY's 2005-2006 CDBG program year amounts expended by SUBRECIPIENT in carrying out <br />said program for fiscal year 2005-2006 pursuant to this Agreement up to a maximum aggregate <br />payment of Nine Thousand Five Hundred Dollars (S 9,500) in installments determined by CITY. <br />Payments shall be made to SUBRECIPIENT through the submission of invoices on a quarterly <br />basis (October, January, April and July) in a form prescribed by CITY, detailing such expenses. <br />CITY shall pay such invoices within thirty (30) days after receipt thereof provided CITY is satisfied <br />that such expenses have been incurred and documented within the scope and provisions of this <br />Agreement and that SUBRECIPIENT is in compliance with the terms and conditions of this <br />Agreement. <br />B. Audit of Account. CITY shall include an audit of the account maintained by <br />SUBRECIPIENT in CITY's annual audit of all CDBG FUNDS in accordance with Title 24 of <br />the Code of Federal Regulations and other applicable federal laws and regulations. <br />C. Common Rule: Pursuant to CFR 85.40(a), the CITY manages the day-to-day <br />operations of each grant and subgrant supported activities. CITY staff has detailed knowledge of the <br />grant program requirements and monitors grant and subgrant supported activities to assure <br />compliance with Federal requirements. Such monitoring covers each program, function and activity <br />and performance goals are reviewed periodically. <br />D. Environmental Review: In accordance with 24 CFR 58, the CITY is responsible for <br />undertaking environmental review and maintaining environmental review records for each <br />applicable project. <br />E. Performance Monitorine: CITY shall monitor the performance of the <br />SUBRECIPIENT against goals and performance standards required herein. Substandard <br />performance as determined by the CITY will constitute non-compliance with this Agreement. If <br />8 <br />