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7.7 Performance Monitoring. The City of San Leandro will monitor the performance of the Subrecipient against goals and performance standards required herein. Substandard performance as determined by the City of San Leandro will constitute non-compliance with this agreement. If action to correct such substandard performance is not taken by the Subrecipient within a reasonable period of time after being notified by the City of San Leandro, contract suspension or termination procedures will be initiated. 7.8 Close-Outs. Subrecipient obligation to the City of San Leandro shall not end until all closeout requirements are completed. Activities during this closeout period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and receivable accounts to the City of San Leandro), and determining the custodianship of records. 7.9 Audits and Inspections. All Subrecipient records with respect to any matters covered by this agreement shall be made available to the City of San Leandro, grantor agency, their designees or the Federal Government, at any time during normal business hours, as often as the City of San Leandro or grantor agency deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit conducted in accordance with current City policy concerning Subrecipient audits. 8.0 ENFORCEMENT OF CONTRACT 8.1 Applicable Law. This contract shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of Califomia and the United States, as applicable. Legal actions conceming any dispute, claim or matter arising out of or in relation to this contract shall be instituted in the Superior Court of the County of Alameda, State of California, the United States District Court for the Northern District of California, or any other appropriate court in Alameda County, and Subrecipient covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. 8.2 Disputes. In the event of any dispute arising under this contract, the injured party shall notify the insuring party in writing of its contentions by submitting a claim therefore. The injured party shall continue performing its obligations hereunder so long as the injuring party commences to cure such default within ten (10) days of service of such notice and completes the cure of such default within thirty (30) days after service of the notice, or such longer period as may be permitted by the injured party; provided that if the default is an immediate danger to the health, safety and general welfare, such immediate action may be necessary. Notwithstanding the foregoing, the City may suspend any further payment of CDBG funds until Subrecipient is in compliance with this contract. Compliance with the provisions of this Section shall be a condition precedent to termination of this contract for cause and to any legal action, and such compliance shall not be a waiver of any party's right to take legal action in the event that the depute is not cured. 8.3 Remedies Upon Default by Subrecipient. In addition to any other rights or remedies available at law or in equity, if Subrecipient fails to fulfill its obligations under this contract, City may, after compliance with the provisions of Section 8.2: a. Temporarily withhold payment of CDBG funds pending correction of the default by Subrecipient; b. Refuse to advance all or any part of the CDBG funds for the project and reallocate said funds to another activity; 10 CDBG CIP Agreement with BFWC FY05-06 G:ICOMMUNITYDEVELOPMEN71fI0USINGSERVICESDIVISIDMCDBGIBuildingFutures With Women mid ChildrenlFY2005-200bICIPAgreement - 20051BFWC CIP Agreement FYOS-OG.doc