25F - CHEPA'S LOGAN PARK APR ADJ-AGMT

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January 1, 2009, which have not been disbursed or encumbered shall be returned by CITY to COUNTY. No expense of CITY will be reimbursed by COUNTY if incurred after December 31, 2008. 2. PROJECT PROPOSAL CITY agrees to comply with all provisions set forth in this Agreement for use of the funds in a professional, timely and diligent manner. The parties hereto agree that concerning matters not specifically contained within the body of this Agreement, the COUNTY's determinations will be final and the COUNTY will control the use of the funds. CITY agrees that the funds will be used toward the purchase of a swing set and construction materials to secure the swing set at Logan Park, Santa Ana, CA between December 19, 2007 and December 31, 2008. Notwithstanding Section 1 herein, CITY agrees to use any real or personal property or equipment that is acquired or improved with the funds for its entire useful life for the purposes, as described herein, for which the funds were granted to CITY by COUNTY. CITY agrees to notify COUNTY promptly if it ceases to use such property or equipment for the purposes described herein at any time before the end of its useful life. CITY agrees to properly maintain, repair and keep in good working order all such property or equipment. CITY warrants that it will obtain and keep in full force and effect, during the term of this agreement and for the useful life of any real or personal property or equipment constructed, acquired or improved with the funds, all permits, licenses or other governmental approvals required for the project and for any services provided in or with property or equipment constructed, acquired or improved with the funds. CITY further agrees that lack of compliance constitutes grounds for COUNTY to pursue the remedies set forth in Section 14 of this Agreement and to reduce the level of payment that otherwise would be provided under Section 6 of the Agreement. Such reduction shall occur only as a result of action of the COUNTY Board of Supervisors. Before such reduction may be made, COUNTY shall provide CITY with at least ten (10) days written notice of the proposed reduction and of the time and place where the Board of Supervisors shall consider the reduction. 2 25F-4