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7. CONFLICT OF INTEREST <br />CITY agrees and understands that COUNTY's funds shall not be used by CITY to pay or <br />reimburse any staff person or consultant who is a member or officer of the City Council or other <br />official governing body of CITY. <br />8. ACCESS AND RECORDS <br />Unless otherwise agreed in writing by the County Executive Officer, or designee, CITY <br />shall maintain separate accounting records for all funds received from COUNTY under this <br />Agreement. All accounting records and evidence pertaining to all costs of CITY shall be kept <br />available at CITY's office or place of business during duration of this Agreement and thereafter for a <br />period not less than five (5) years. CITY shall make all of its records available to COUNTY upon <br />request during regular business hours for the purpose of evaluation or auditing and shall furnish <br />clerical assistance for these purposes to COUNTY as required. CITY agrees to implement all <br />accounting and/or record-keeping recommendations made by COUNTY. In the event CITY does not <br />make its books and financial records available to COUNTY, CITY agrees to pay all necessary and <br />reasonable expenses, including attorney's fees, incurred by COUNTY in obtaining the records and <br />conducting an audit or evaluation. <br />9. INDEMNIFICATION <br />CITY agrees to indemnify, defend with counsel approved in writing by COUNTY, and <br />hold COUNTY, its elected and appointed officials, officers, employees, agents and those special <br />districts and agencies which COUNTY'S Board of Supervisors acts as the governing Board <br />("COUNTY INDEMNITEES") harmless from any claims, demands or liability of any kind or nature, <br />including but not limited to personal injury or property damage, arising from or related to the <br />performance provided by CITY pursuant to this Agreement. If judgment is entered against CITY and <br />COUNTY by a court of competent jurisdiction because of the concurrent active negligence of <br />COUNTY or COUNTY INDEMNITEES, CITY and COUNTY agree that liability will be <br />apportioned as determined by the court or jury. <br />10. CORPORATE STATUS <br />If CITY is a non-profit or public benefit corporation, it must at all times be listed as being <br />in good standing, without suspension, by the California Secretary of State, Franchise Tax Board and <br />Internal Revenue Service. Any change in such corporate status, or any suspension, shall be reported <br />immediately to COUNTY. <br />11. INDEPENDENT CONTRACTOR <br />CITY shall be considered an independent contractor and neither its employees nor <br />subcontractors, agents or anyone else working under or on behalf of CITY shall be considered an <br />3 <br />