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CITY'S OBLIGATIONS <br />A. CITY agrees to pay to CONTRACTOR when, if and to the extent federal funds <br />are received under the provisions of the Act a sum not to exceed Two Hundred Twenty Six Thousand <br />Five Hundred Dollars ($226,500) for CONTRACTOR'S performance in accordance with the payment <br />schedule attached hereto as "Exhibit E" during the period of this Agreement. Said sum shall be paid <br />after CITY receives invoices submitted by CONTRACTOR as provided hereinabove. <br />B. CONTRACTOR has the ability to adjust line item amounts in the budget with <br />the approval of the City of Santa Ana Community Development Agency Executive Director, so long as <br />the total Budget amount does not increase. <br />C. CITY agrees to provide for on-site monitoring reviews of said program <br />operation at least twice annually. In addition, monthly desk-top reviews of pertinent information will <br />be conducted. <br />D. CITY has the right to de-obligate the funds hereunder and take such funding <br />back from CONTRACTOR due to any of the following reasons: (a) lack of performance by <br />CONTRACTOR; (b) lack of fiscal accountability of CONTRACTOR; or (c) decrease in available <br />funding. <br />III. <br />TIME PERIOD OF AGREEMENT <br />The term of this Agreement shall commence on December 1, 2011, and all duties <br />arising under this Agreement shall have been performed by November 30, 2015. The term of this <br />Agreement may be extended by a writing executed by the City Manager and the City Attorney. <br />IV. <br />INDEPENDENT CONTRACTOR <br />CONTRACTOR shall, during the entire term of this Agreement, be construed to be an <br />independent contractor and not an employee of the City. This Agreement is not intended nor shall it be <br />construed to create an employer-employee relationship, a joint venture relationship, or to allow the City <br />to exercise discretion or control over the professional manner in which CONTRACTOR performs the <br />services which are the subject matter of this Agreement; however, the services to be provided by <br />CONTRACTOR shall be provided in a manner consistent with all applicable standards and regulations <br />governing such services. CONTRACTOR shall pay all salaries and wages, employer's social security <br />taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all <br />applicable withholding taxes. <br />V. <br />WORKER'S COMPENSATION AND EMPLOYER'S RIGHTS <br />A. CONTRACTOR shall use appropriate funds received from CITY to provide <br />workers' compensation to all those hired by CONTRACTOR under this Agreement. <br />B. CONTRACTOR shall have the right to hire, dismiss, or promote its employees <br />or contract personnel hired under this Agreement so long as its hiring or dismissal policy or standard <br />does not violate Title VII of the Civil Rights Act of 1964, Fair Labor Standards Act of 1938, or any <br />Page 5 of 13