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5/OS <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 />II. 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 2006-07 CDBG program year amounts expended by SUBRECIPIENT in carrying out said <br />program for fiscal year 2006-07 pursuant to this Agreement up to a maximum aggregate payment <br />of Twenty Thousand Dollars ($ 20,000) in installments determined by CITY. Payments shall be <br />made to SUBRECIPIENT through the submission of invoices on a quarterly basis (October, January, <br />April and July) in a form prescribed by CITY, detailing such expenses. CITY shall pay such <br />invoices within thirty (30) days after receipt thereof provided CITY is satisfied that such expenses <br />have been incurred and documented within the scope and provisions of this Agreement and that <br />SUBRECIPIENT is in compliance with the terms and conditions of this 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 />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 />8 <br />