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7 <br /> 8.4 The final invoice covering costs incurred for work performed on or before <br /> September 30, 2002, must be submitted by the County prior to October 5, 2002, to allow the City <br /> sufficient time for processing and submission to the Office of Community Development <br /> ("OCD"). Payment of the final invoice shall be contingent upon the City's and the OCD's <br /> receipt and approval of a final progress report. <br /> 8.5 The City may withhold reimbursement payment if the County does not <br /> submit required reports to the City. Upon the County's submittal of required reports, the City <br /> shall make payment to the County as provided in the Agreement. Failure of the County to <br /> =submit reports as specified is grounds for the City to terminate this Agreement. <br /> 9 Recapture Provisions. In the event that the County does not expend funds under <br /> this Agreement in accordance with the provisions of this Agreement, the City reserves the right <br /> to recapture funds in an amount equivalent to the extent of noncompliance. Such right of <br /> recapture shall exist for a period not to exceed six years after the relevant one year term of this <br /> Agreement. <br /> 10 - Documentation and Monitoring. The County shall follow accounting procedures <br /> and shall maintain books, records, documents, and other evidence which sufficiently and <br /> properly reflect all direct, indirect and match costs of any nature expended in the performance of <br /> this Agreement. The County will retain all books,records, documents and other materials <br /> relevant to the provision of services under this Agreement for six years for the date of final <br /> payment. A representative of the United States Department of Justice, the Office of the <br /> Washington State Auditor, and/or the City, or any person(s)duly authorized by any of them shall <br /> have full access to and the right to inspect, excerpt, audit or examine any of these materials at all <br /> reasonable times for a period of six years. <br /> 11. Compliance with Laws. The parties shall comply with all applicable federal, state <br /> and local laws, rules and regulations in performing this Agreement, including, but not limited to, <br /> laws against discrimination. <br /> 12. Hold Harmless and Indemnification. <br /> 12.1 The County shall hold harmless, indemnify, and defend, at its own <br /> expense, the City,its elected and appointed officials, officers, employees and agents form any <br /> loss or claim for damages of any nature whatsoever, arising out of the County's performance or <br /> failure to perform under this Agreement, including but not limited to claims by the County's <br /> employees or third parties, except for those damages solely caused by the negligence or willful <br /> misconduct of the City, its elected and appointed officials, officers, employees or agents. <br /> 12.2 The City shall hold harmless, indemnify, and defend at its own expense, <br /> the County, its elected and appointed officials, officers, employees and agents, from any loss or <br /> claim for damages of any nature whatsoever, arising out of the City's performance or failure to <br /> perform under this Agreement, including but not limited to claims by the City's employees or <br /> third parties, except for those damages solely caused by the negligence or willful misconduct of <br /> the County, its elected and appointed officials, officers, employees or agents. <br /> INTERLOCAL AGREEMENT <br /> Page 3 <br /> REGARDING 2001 STOP GRANT <br />