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State and availability of CDBG ftmds from HUD. The City shall retain Seventy -Thousand <br />Dollars ($70,000.00) for costs associated with contract administration and CEQA <br />compliance required by the grant." <br />2. Section 2, subsection d, of said Agreement shall be deleted. <br />3. Section 4, subsection a, of said Agreement shall be amended to read as follows: <br />"This Agreement shall begin on the date first stated above and terminate ninety days after <br />District files a Notice of Completion regarding the Facilities or by June 30, 2019, <br />whichever is the earlier. The City may extend the term of the Agreement with a writing <br />signed by the City Manager and City Attorney. Except as indicated herein, neither party <br />may terminate this Agreement." <br />4. Section 11.5, shall be added to said Agreement and read as follows: <br />1111.5. Terms Required Based on CDBG Funding The following terms are made a part <br />of this Agreement, as required by the Parties' participation in and use of funds from the <br />HUD CDBG program. <br />A. Use of Debarred, Suspended, or Ineligible Participants. The Parties shall <br />comply with the provisions of 24 CFR 570.609 relating to the employment, <br />engagement of services, awarding of contracts, or funding of any contractor or <br />subcontractor during any period of debarment, suspension, or placement in <br />ineligibility status. <br />B. No Pending Investigation. Each Party asserts that, to the best of its knowledge, it <br />is not the subject of any current or threatened criminal or civil action investigation <br />by any other public agency, including without limitation a police agency or <br />prosecuting authority, which would relate to performance of the Agreement or <br />provision of services hereunder. <br />C. Uniform Administrative Requirements, Cost Principles, and Audit <br />Requirements for Federal Awards. District shall comply with applicable uniform <br />requirements as described in 24 CFR 570.502. The following requirements and <br />standards must be complied with: 2 CFR Part 200 et al. District shall procure all <br />materials, property, or services in accordance with the requirements of 2 CFR <br />200.318-326, <br />D. Other Program Requirements. District shall carry out each activity in compliance <br />with all federal laws and regulations described in Subpart IC of 24 CFR 570. <br />District will carry out its activities in compliance with the requirements of Subpart <br />K of 24 CPR 570, however District does not assurne the City's environmental <br />responsibilities or the responsibility for initiating the environmental review process <br />under 24 CFR Part 52, <br />2 <br />Exhibit 2 <br />