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C. Audit <br /> The CITY shall have the right to audit and monitor any program income as a result of an <br /> ESG activity. Upon request by the CITY and for audit purposes, the SUBRECIPIENT further <br /> agrees to provide all files, records, and documents pertaining to related activities and clientele <br /> demographic data. <br /> IX. LIABILITY <br /> A. Generally <br /> Each party to this AGREEMENT acknowledges that it will be liable for its own negligent <br /> acts or negligent omissions by or through itself, its employees, agents, and subcontractors. Each <br /> party further agrees to defend itself and themselves, and to pay any judgments and costs arising <br /> out of such negligent acts or omissions, and nothing in this AGREEMENT shall impute or <br /> transfer any such liability from one to the other.In other words,the SUBRECIPIENT agrees to be <br /> fully responsible for its negligent acts or omissions, or any intentional tortuous acts which result <br /> in claims or suits against the CITY, and agrees to be liable for any damages proximately caused <br /> by said acts or omissions. Nothing herein shall be construed as consent by a State or CITY <br /> agency or subdivision to be sued by third parties in any matter arising out of any contract, and <br /> nothing herein is intended to serve as a waiver of sovereign immunity where sovereign immunity <br /> applies. <br /> B. CITY not Liable for Funds <br /> The SUBRECIPIENT further acknowledges that the source of the ESG Funds is a federal <br /> pass-through grant to the SUBRECIPIENT. The CITY shall have no obligation to advance or pay <br /> the SUBRECIPIENT with any funds other than the ESG Funds the CITY receives from HUD. <br /> C. Hold Harmless <br /> The SUBRECIPIENT shall defend, indemnify and save harmless the CITY, its City <br /> Council, officers, agents, employees, representatives, volunteers, and student externs from and <br /> against any and all damages to property or injuries to or death of any person or persons, including <br /> property and employees or agents of the CITY, and shall defend, indemnify and save harmless <br /> the CITY, its City Council, officers, agents, employees, representatives, volunteers, and student <br /> externs from and against any and all claims, demands, suits,actions or proceedings of any kind or <br /> nature, including, but not by way of limitation, workers compensation claims and attorney <br /> fees/expenses for litigation or settlement, resulting from or arising out of the negligent or <br /> wrongful acts, errors or omissions of the SUBRECIPIENT, its officers, directors, employees, <br /> agents, subcontractors, and suppliers arising out of the SUBRECIPIENT's performance of this <br /> AGREEMENT. <br /> X. ENVIRONMENTAL CONDITIONS <br /> A. Generally <br /> ESG activities are subject to environmental review by HUD under the environmental <br /> regulations in 24 CFR Part 50. The SUBRECIPIENT, or any contractor of the SUBRECIPIENT, <br /> may not acquire, rehabilitate, convert, lease, repair, dispose of, demolish, or construct property <br /> for a project under this part, or commit or expend HUD or local funds for eligible activities under <br /> Page 17 of 23 <br />