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<br />SWC : mmg 8 / 1 3 ( # 3 7 / 0 11) <br />SWC:aml 8/1/d8R <br /> <br />Notwithstanding the foregoing, City may terminate this <br /> <br />agreement upon the occurrence of either of the following: <br /> <br />(a) Federal Community Development Block Grant funds cease, <br />for any reason, to be available to the City; <br /> <br />(b) Determination by the City that the funds are being used <br />for purposes other than those stated in this agreement. <br />In such event, City shall give Heron Court five (5) <br />days written notice prior to such termination. <br /> <br />7. AUDIT; MONITORING. City may audit any and all records <br /> <br />and accounts of Heron Court for the purpose of verifying the <br /> <br />expenditures or any part of the aforementioned statement or <br /> <br />analysis made or provided by Heron Court hereunder. Heron Court <br /> <br />shall reply to and comply with any audit exception by City or <br />appropriate Federal agencies resulting from performance of this <br /> <br />Agreement. Heron Court agrees to pay City the full amount of its <br /> <br />liability to the City or Federal Government resulting from audit <br />exception in programs funded by this Agreement. <br /> <br />City <br /> <br />will <br /> <br />monitor <br /> <br />Heron <br /> <br />Court's <br /> <br />programs <br /> <br />and <br /> <br />expendi tures made pursuant to this Agreement, or otherwise at <br /> <br />least quarterly, to verify Heron Court's compliance with local <br /> <br />and federal contract requirements, and with the goals and <br /> <br />guidelines set forth in Exhibit "A". <br /> <br />8. <br /> <br />CONTRACTOR'S STATUS. <br /> <br />In the performance of the <br /> <br />obligations set forth in this Agreement, Heron Court shall have <br /> <br />the status of an independent contractor and in no sense shall <br /> <br />Heron Court or any person employed by it pursuant to this <br /> <br />Agreement be considered to be an employee of the City. <br /> <br />9. HOLD HARMLESS. Heron Court shall defend, indemnity and <br /> <br />. <br /> <br />hold harmless City, its Council, boards, commissions, officers, <br /> <br />agents and employees from any liability whatsoever caused by, <br />4 <br />