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5/05 <br />3. The Ci ty and the U ni ted States Department of H ousi ng and U rban Devel opment <br />wi I I be noti f i ed wi thi n ten days after recei vi ng noti ce of any such vi of ati on. <br />4. Wi thi n 30 days of reoei vi ng such noti ce, appropri ate personnel acti on wi I I be tak- <br />en agai nst such empl oyep, up to and i nd udi ng termi nati on. <br />5. Each such empl oyee shall I be requi red to parti ci pate sati sfactori I y i n a drug abuse <br />assistance or rehabi I i tati on program approved for such purposes by a federal, state or local <br />heal th, I aw enforcement, or other appropri ate agency. <br />X. Expenditure of Funds: SUBRECIPIENT must spend all of its grant amount within 24 <br />months of the grant award (24 CFR 576.35). Any funds not obligated within said timeframe <br />shal I be red I ocated. <br />II. CITY'SOBLIGATIONS <br />A. CITY shall pay to SUBRECI PI ENT from funds received under the ESG when, if and <br />to the extent received from HUD, amounts expended by SUBRECI PI ENT in carrying out said <br />program pursuant to this Agreement up to a maximum aggregate amount of Forty Thousand <br />($40,000) in installments determined by CITY. Payments shall be made to SUBRECIPIENT <br />through the submi ssi on of quaterl y i nvoi ces (on or before the 15th day of October, January, Apri I <br />and Jul y) i n a form prescri bed by CI TY, detai I i ng such expenses. Cl TY shat I pay such i nvoi ces <br />wi thi n thi rty (30) days after reoei pt thereof, provi ded CI TY i s sati sf i ed that such expenses have <br />been i ncurred wi thi n the scope of thi s Agreement and that SU BRECI PI ENT i s i n comp) i ance <br />wi th the terms and condi ti ons of thi s Agreement. <br />Costs i ncurred prior to the effective date of this Agreement, accrued as of the fi rst day of <br />July 1, for purposes identified herei n wi I I be al Iowabla for rei mburse hent upon presentation of <br />evi Bence of and i nvoi ces for such expendi tures. <br />B. Audit: CITY shall i nd ude an audit of the account maintained by SU BRECI R ENT in <br />CI TY's annual audi t of al I funds pursuant to the Code of Federal Regul ati ons and other apps i ca- <br />bl a federal I aws and regul ati ons. <br />C. Common Rule Pursuant to CFR 85.40(a), the CITY manages the day -today operations <br />of each grant and subgrant supported activities. CITY staff has detailed knowledge of the grant <br />program requi repents and monitors grant and subgrant supported activities to assure compliance <br />with Federal requirements. Such moni tori ng covers each program, function and activity and <br />performance goals are reviewed periodical Iy. <br />D. Envi ronmental Revi ew: I n accordance wi th 24 CFR 58, the CI TY i s responsi bl a for <br />undertaki ng envi ronmental revi ew and mai ntai ni ng envi ronmental review records for each apps i - <br />cabl a proj ect. <br />16 <br />