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Regional Early Action Planning (REAP), <br />Grant Suballocation Agreement, <br />City of Redwood City <br />Page 6 <br /> <br />14. Recipient shall indemnify, defend, and hold harmless ABAG, MTC, and their respective board <br />members, representatives, agents and employees (“ABAG Indemnified Parties”) from and against all <br />claims, injury, suits, demands, liability, losses, damages and expenses, whether direct or indirect <br />(including any and all costs and expenses in connection therewith), incurred by reason of any act or <br />failure to act of Recipient, its officers, employees or agents, or subconsultants or any of them in <br />connection with this Agreement. <br />15. Recipient agrees to establish and maintain an accounting system conforming to generally <br />accepted accounting principles (GAAP) that is adequate to accumulate and segregate reasonable, <br />allowable, and allocable project costs. Recipient further agrees to keep all records pertaining to the <br />Project(s) being funded for audit purposes for a minimum of: (a) three (3) years following final <br />payment to Recipient, (b) four (4) years following the fiscal year of last expenditure under the <br />Agreement; or (c) until completion of any litigation, claim or audit, whichever is longest; and ABAG <br />may inspect and audit such records during that period of time. <br />16. Any claim or controversy concerning the interpretation, application, or implementation of this <br />Agreement between ABAG and Recipient that cannot be resolved through the informal, good faith <br />efforts of the parties may, by specific agreement of the parties, be submitted to alternative dispute <br />resolution (that is, mediation or arbitration) with the parameters for such dispute resolution being <br />agreed to by the parties at the time. If a dispute is not resolved through discussion or the parties do not <br />agree to alternative dispute resolution, either party may pursue available legal remedies in a California <br />State or Federal court of competent jurisdiction. Recipient must file a government claim pursuant to <br />Government Code section 910 et seq. in order to initiate a civil action. The prevailing party in any <br />dispute shall be entitled to payment of its attorneys’ fees and costs. This section shall survive the <br />termination or expiration of the Agreement. <br />17. All questions pertaining to the validity and interpretation of the Agreement shall be determined <br />in accordance with the laws of the State of California applicable to agreements made and to be <br />performed within the State. <br />18. Recipient may subcontract to consultants or contractors for performance of portions of the work <br />required under this Agreement, without the prior written consent of ABAG, provided Recipient <br />complies with any other applicable requirements of this Agreement and the applicable Attachments <br />hereto, and applicable federal and state requirements. <br />19. For purposes of this Agreement, “subconsultant” shall mean any consultant or contractor under <br />contract with the Recipient to perform Project work. Any subconsultants must be engaged under <br />written contract with Recipient with provisions allowing Recipient to comply with all requirements of <br />this Agreement. Failure of a subconsultant to provide any insurance required under this Agreement <br />shall be at the risk of Recipient. ABAG’s Project Manager shall be notified in writing of any <br />DocuSign Envelope ID: 8A67B327-8D8D-41F3-A9AA-0E6612310575