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<br />B. Standard of Care. As a material inducement to City to enter into this <br />MOU, Subrecipient hereby represents and warrants that it has the experience necessary to <br />undertake the services to be provided as set forth in Exhibit A. <br /> <br />C. Compliance with Laws/Program Income. Subrecipient acknowledges that <br />the funds being provided by City for said program are received by City pursuant to applicable <br />ESG guidelines and that expenditures of these funds shall be in accordance with the ESG <br />guidelines and all pertinent regulations issued by agencies of the federal government. <br />Subrecipient agrees to comply fully with all federal, state and local laws and court orders <br />applicable to its operation whether or not referred to in this Agreement, and all Program <br />Requirements. Program income received by Subrecipient shall be returned to City unless <br />otherwise provided for in this Agreement. Subrecipient agrees to comply fully with all federal, <br />state and local laws and court orders applicable to its operation whether or not referred to in this <br />Agreement. <br /> <br />D. Performance Monitoring. City shall monitor the performance ofthe <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 />action to correct such substandard performance is not taken by the Subrecipient within a <br />reasonable period of time after being notified by the City, contract suspension or termination <br />procedures will be initiated. <br /> <br />2. Term of MOD. Subrecipient shall provide its services under this MOD for a 12 <br />month period commencing on July 1,2005 through June 30, 2006. <br /> <br />3. Budget. Subrecipient agrees to complete said Program on or before June 30, <br />2006 and to use said funds to pay for necessary and reasonable costs allowable under the federal <br />law and regulations to operate said program. Other allowable program costs are detailed in the <br />Budget, as set forth in "Exhibit B," attached hereto and by this reference incorporated herein. <br />Subrecipient shall use all income received from said funds only for the same purposes for which <br />said funds may be expended pursuant to the terms and conditions of this Agreement. No <br />budgetary changes shall occur without City's prior approval. Subrecipient hereby certifies and <br />agrees that it will not use funds provided through this Agreement to pay for entertainment, meals or <br />gifts. <br />4. Compensation. Amount of Grant; Ouarterlv Disbursement and Match Funds. <br />The amount granted to Subrecipient is $15,000 ("ESG FUNDS"), and such funds shall be <br />expended by Subrecipient on or before , 2006. The ESG FUNDS shall be <br />disbursed by City to Subrecipient on a quarterly basis, subject to and upon receipt and approval <br />of a complete quarterly activity report, with the final payment subject to the satisfaction of the <br />condition precedent of submittal of complete reporting information due on or before July 15 of <br />the applicable funding year, as hereinafter more fully set forth. Subrecipient shall be obligated to <br />perform such duties as would normally extend beyond the term, including but not limited to <br />obligations with respect to indemnification, audits, reporting, data retention/reporting, and <br />accounting. <br /> <br />2 <br />