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• <br /> City of San Leandro <br /> Agreement No.: 11'- 806 -550 <br /> Project No.: C -06- 7002 -110, <br /> • <br /> 5.12 Conflict of Interest. <br /> The Recipient certifies that it is in compliance with applicable state and/or federal conflict of interest <br /> laws. <br /> 5.13 Damages for Breach Affecting Tax Exempt Status or Federal Compliance. <br /> (a) In the event that any breach of any of the provisions of this Agreement by the Recipient shall <br /> result in the loss of tax exempt status for any state bonds, or if such breach shall result in an <br /> obligation on the part of the State to reimburse the federal government by reason of any , <br /> arbitrage profits, the Recipient shall immediately reimburse the state in an amount equal to any <br /> damages paid by or loss incurred by the state due to such breach. <br /> (b) In the event that any breach of any of the provisions of this Agreement by the Recipient shall <br /> result in the failure of Project Funds to be used pursuant to the provisions of this Agreement, or <br /> if such breach shall result in an obligation on the part of the State to reimburse the federal <br /> government, the Recipient shall immediately reimburse the State in an amount equal to any <br /> damages paid by or loss incurred by the State due to such breach. <br /> 5.14 Disputes. <br /> (a) Any dispute arising under this Agreement which is not otherwise disposed of by agreement shall <br /> be decided by the Division Deputy Director, or his or her authorized representative. The decision <br /> shall be reduced to writing and a copy thereof furnished to the Recipient and to the State Water <br /> Board's Executive Director. The decision of the Division shall be final and conclusive unless, <br /> within thirty (30) calendar days after mailing of the Division decision to the Recipient, the <br /> Recipient mails or otherwise furnishes a written appeal of the decision to the State Water <br /> Board's Executive Director. The decision of the State Water Board's Executive Director shall be <br /> final and conclusive unless determined by a court of competent jurisdiction to have been <br /> fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, <br /> or not supported by substantial evidence. In connection with any appeal under this clause, the <br /> Recipient shall be afforded an opportunity to be heard and to offer evidence in support of its <br /> appeal. Pending final decision of a dispute hereunder, the Recipient shall continue to fulfill and <br /> comply with all the terms, provisions, commitments, and requirements of this Agreement. <br /> (b) This clause does not preclude consideration of legal questions, provided that nothing herein <br /> shall be construed to make final the decision of the State Water Board, or any official or <br /> representative thereof, on any question of law. <br /> (c) Recipient shall continue with the responsibilities under this Agreement during any dispute. <br /> 5.15 Independent Actor. <br /> The Recipient, and its agents and employees, if any, in the performance of this Agreement, shall <br /> act in an independent capacity and not as officers, employees or agents of the State Water Board. <br /> 5.16 Non - Discrimination Clause. <br /> (a) During the performance of this Agreement, Recipient and its contractors and subcontractors <br /> shall not unlawfully discriminate, harass, or allow harassment against any employee or <br /> applicant for employment because of sex, race, color, ancestry, religious creed, national <br /> origin, sexual orientation, physical disability (including HIV and AIDS), mental disability, <br /> medical condition (cancer), age (over 40), marital status, and denial of family care leave. <br /> 21 <br /> F1Ya1m1D <br />