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<br />. <br /> <br />. <br /> <br />35. <br /> <br />DEFAULT. DAMAGES AND TERMINATION OF AGREEMENT: <br /> <br />(a) In the event CONTRACTOR defaults in the performance of <br />any of the obligations, covenants or agreements to be kept, done or <br />performed by it under the terms of this Agreement, or any other <br />applicable Federal, state, or local law or regulation, the CITY <br />shall notify CONTRACTOR in writing of the nature of such default. <br /> <br />(b) The Executive Director may, in such written instrument, <br />set a reasonable time within which correction of all such <br />deficiencies is to be made. Unless otherwise specified, a <br />reasonable time for correction shall be thirty (30) days from the <br />receipt by the CONTRACTOR of such written notice. If the <br />CONTRACTOR cannot reasonably correct or remedy the breach within <br />the time set forth in such notice, CONTRACTOR shall still be <br />required to commence to correct or remedy the violation within such <br />time as set forth in the notice and shall be required to diligently <br />achieve such correction or remedy as soon thereafter as possible. <br /> <br />(c) The Executive Director shall review the CONTRACTOR's <br />response to the notice of deficiencies and shall either decide the <br />matter and notify the CONTRACTOR of that decision in writing, or, <br />refer the matter to the city Council. A decision or order of the <br />Executive Director shall be final and binding on CONTRACTOR if the <br />CONTRACTOR fails to file a "Notice of Appeal" with the City Clerk <br />within 10 days of receipt of the Executive Director's decision. <br />within thirty working days of receipt of a Notice of Appeal, the <br />City Clerk shall refer the appeal to the City Council for <br />proceedings in accordance with Chapter three of the Santa Ana <br />Municipal Code. <br /> <br />(d) In such case, the City Council may set the matter for <br />hearing. The City Clerk shall give CONTRACTOR written notice of <br />the time and place of the hearing. At the hearing, the city <br />Council shall consider the report of the Executive Director <br />indicating the deficiencies, and shall give the CONTRACTOR a <br />reasonable opportunity to be heard. <br /> <br />(e) Based on the evidence presented at the public hearing, <br />the City Council shall determine by Resolution whether this <br />Agreement should be terminated. If, based upon the record, the <br />city Council determines that the performance of CONTRACTOR is in <br />breach of any material term of this Agreement or any material <br />provision of any applicable Federal, State, or local statute or <br />regulation, the City Council, in the exercise of its sole <br />discretion, may terminate forthwith the Agreement. The decision of <br />the City Council shall be final and conclusive. CONTRACTOR's <br />performance under the Agreement is not excused during the period of <br />time prior to the City Council's final determination as to whether <br />such performance is deficient. <br /> <br />28 <br />