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life insurance, retirement system, vacation and sick leave provisions). The Successor Agency shall follow the City's Personnel Policy and labor contracts, rules and regulations, including procedures affecting conflict of interest, use of funds and procedures on hiring and firing. The costs attributable to employees who devote less than 100% of their time to the Successor Agency shall be allocated in accordance with the City's costs allocation plan. 5.2 General Overhead. A general indirect administrative operating expense and overhead support charge which shall be determined in accordance with the City's cost allocation plan and Successor Agency's Administrative Budget. 5.3 Specific Services. All expenses that City may actually incur in providing specific administrative services on behalf of Successor Agency include, but are not limited to: audit services, lease of space to accommodate Successor Agency's activities, City Treasurer service, property insurance for Successor Agency's properties, contracts for real estate, data and information, records, department supplies and equipment, mail and postage services, equipment maintenance and IT support. Operational services which relate to specific program and projects, including but not limited to project management, legal services, engineering design, real estate services, construction management, planning, contract costs, contract administration, inspection, surveys shall not be considered administrative services but direct specific program and project expenditures ( "Project Expenses "). 6. Provisions Severable. If any provision of this Agreement or application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to this end the provisions of this Agreement are severable. The City Council and Successor Agency each hereby declare that it would have approved this Agreement irrespective of the invalidity of any particular portion thereof. 7. Effective Date of Agreement. This Agreement shall become effective as of the first day noted above and shall continue thereafter until modified or terminated by the parties hereto. This Agreement is subject to Oversight Board review. 8. Miscellaneous Provisions. A. Brown Act. The Successor Agency meetings are noticed, open and public as required by the Ralph M. Brown Act (Government Code section 54950, et seq., as amended). B. Public Records Act. The Successor Agency complies with the Public Records Act (Government Code section 6250, et. seq, as amended) and unless a records clearly falls within an exception, such records are made available to the public in compliance with the City's policies and procedures. Attachment 2 4