SANTA ANA UNIFIED SCHOOL DISTRICT (SAUSD) (2) -2012

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and (c) replace such certificates for policies expiring prior to completion of work under this Agreement. 2. District shall require Contractor to post performance and payment bonds to cover the entire construction period. M. Access to Records. At their sole cost, the City and the United States Government and /or their representatives shall have reasonable access to the District's books, documents and papers concerning the construction of the MPR/CC to audit expenditures on the MPR/CC for compliance with CDBG requirements. The District shall require the Contractor to provide the same access to the Contractor's records for constructing the MPR/CC. City and the United States Government and/or their representatives shall also schedule on -site monitoring at their discretion. Monitoring activities may also include, but are not limited to, questioning employees and participants in said program and entering any premises or any site in which any of the services or activities funded hereunder is conducted or in which any of the records of District are kept. Nothing herein shall be construed to require access to any privileged or confidential information as set forth in federal or state law. 28. Character of City's Funding For MPR/CC Design Services. A. The City represents and warrants that CDBG funds applied to the MPR/CC are appropriate under federal law. The City shall promptly review, upon the District providing such, the MPR/CC's designs, procurement for construction, progress of construction, and District administrative processes and provide the District with direction on any administrative procedures, documentation, and/or processes required to ensure that the MPR/CC complies with all CDBG requirements. To the extent that CDBG funds are nonetheless deemed to be misapplied to the MPR/CC including the failure to use the buildings in accordance with one of the national objectives in 24 CFR § 570.208, by HUD, any State or Federal agency, or any court of competent jurisdiction and CDBG funds for the MPR/CC are disgorged from the District, the City shall make the District whole by reimbursing the District within a reasonable time for any of its damages, fines, penalties, or losses of any kind. B. This paragraph 28 shall survive the termination of this Agreement. District represents and warrants that it shall not knowingly misapply funding provided hereunder or knowingly use such funds for any unauthorized uses. Construction Reimbursement Agreement — City of Santa Ana /SAUSD — MPR/CC 8 -28 -12 Page 8