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35. DEFAULT. DAMAGES AND TERMINATION OF AGREEMENT: <br />(a) In the event CONTRACTOR defaults in the performance of any of the <br />obligations, covenants or agreements to be kept, done or performed by it under the terns of this <br />Agreement, or any other applicable Federal, State, or local law or regulation, the CITY shall <br />notify CONTRACTOR in writing of the nature of such default. <br />(b) The Executive Director may, in such written instrument, set a reasonable time <br />within which correction of all such deficiencies is to be made. Unless otherwise specified, a <br />reasonable time for correction shall be thirty (30) days from the receipt by the CONTRACTOR <br />of such written notice. If the CONTRACTOR cannot reasonably correct or remedy the breach <br />within the time set forth in such notice, CONTRACTOR shall still be required to commence to <br />correct or remedy the violation within such time as set forth in the notice and shall be required to <br />diligently achieve such correction or remedy as soon thereafter as possible. <br />(c) The Executive Director shall review the CONTRACTOR's response to the notice <br />of deficiencies and shall either decide the matter and notify the CONTRACTOR of that decision <br />in writing, or, refer the matter to the City Council. A decision or order of the Executive Director <br />shall be final and binding on CONTRACTOR if the CONTRACTOR fails to file a "Notice of <br />Appeal" with the City Clerk within 10 days of receipt of the Executive Director's decision. <br />Within thirty working days of receipt of a Notice of Appeal, the City Clerk shall refer the appeal <br />to the City Council for proceedings in accordance with Chapter three of the Santa Ana Municipal <br />Code. <br />(d) In such case, the City Council may set the smatter for hearing. The City Clerk shall <br />give CONTRACTOR written notice of the time and place of the hearing. At the hearing, the City <br />Council shall consider the report of the Executive Director indicating the deficiencies, and shall <br />give the CONTRACTOR a reasonable opportunity to be heard. <br />(e) Based on the evidence presented at the public hearing, the City Council shall <br />determine by Resolution whether this Agreement should be terminated. If, based upon the <br />record, the City Council determines that the performance of CONTRACTOR is in breach of any <br />material term of this Agreement or any material provision of any applicable Federal, State, or <br />local statute or regulation, the City Council, in the exercise of its sole discretion, may terminate <br />forthwith the Agreement. The decision of the City Council shall be final and conclusive, <br />CONTRACTOR's performance under the Agreement is not excused during the period of time <br />prior to the City Council's final determination as to whether such performance is deficient. <br />(f) The rights of termination or imposition of liquidated damages, as set forth in <br />Section 36 hereof, are in addition to any other rights of CITY upon a failure of CONTRACTOR <br />to perform its obligations under this Agreement. The CITY further reserves the right to terminate <br />CONTRACTOR's Agreement or impose liquidated damages in the event of any of the <br />following: <br />the CITY; <br />(1) If the CONTRACTOR practices, or attempts to practice, any fraud upon <br />23 <br />