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CONTINGENCY OF FUNDS <br />CONTRACTOR acknowledges that approval of and funding for this Agreement is <br />contingent upon State approval. and funds received or obligated from the State of California to CITY. <br />If such approval of funds is not forthcoming. or is otherwise limited. CITY shall immediatelynotify <br />CONTRACTOR. VA'ithin twenty (20) days of receipt of such notice, CONTRACTOR shall modify or <br />cease operations as directed by CITY and negotiate necessary modification to this Agreement and/or <br />reimbursement of costs incurred hereunder. <br />XV. <br />TERMINATION <br />This Agreement may be terminated by either part° at its sole discretion. upon thirty (30) <br />days written notice to the other party. Notice shall be deemed served on the date of mailing. However. <br />if undue hardship will result to any participant. <br />CONTRACTOR may not tenninate this Agreement <br />XVI. <br />DISPLTES <br />Except as other -wise provided in this Agreement. any dispute concerning any question <br />arising under this Agreement shall be decided b-,- CITY. In such a case CITY shall reduce its decision <br />to writing and mail or otherwise furnish a copy thereof to CONTRACTOR. The decision of the City <br />shall be final and conclusive unless within thirty (30) calendar days from the mailing or delivery of <br />such cope. CITY receives from CONTRACTOR w itten request to appeal said decision. <br />Procedures governing the appeal shall be prescribed by CITY and/or the State of <br />California in accordance with the Act and all corresponding regulations and OMB circulars. Pending <br />final disposition of the appeal. CONTRACTOR shall act in accordance with CITY's decision unless <br />the dispute involves a change order. <br />XVII. <br />BREACH - SANCTIONS <br />If. through any cause. CONTRACTOR violates any of the terns and conditions of this <br />Agreement. and%or prior agreements whereby grant funds were received by CONTRACTOR pursuant <br />to this Agreement. or if CONTRACTOR reports inaccurately or if any Audit Report makes <br />disallowances. CONTRACTOR shall promptly remedy its acts or omissions and/or repay CITY all <br />amounts due CITY as a result of CONTRACTOR's violation. For any such failures or violations. <br />CITY shall also have the right at its sole discretion to either: (1) discontinue program support until <br />such time as CONTRACTOR fulfills its obligations or remedies all violations of this agreement or <br />prior agreements: and/or (1) collect outstanding amounts as detennined by CITY due CITY by <br />offsetting or debiting from current claims or invoices. if after thirty (30) days' written notice <br />CONTRACTOR has failed to repay same or a repayment schedule has not been made. and/or (3) <br />terminate this Agreement by giving written notice to CONTRACTOR of such termination in <br />accordance the notice provision in Paragraph XVIII herein below. <br />XVIII. <br />NOTICES <br />Page 12 of 14 <br />