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