1989-008-RES WHEREAS, CITY COUNCIL IN RES 88-037 PASSED

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correction of such del .~iencies by Contractor. Failure -I Contractor to take action specified in the monitoring report may be cause for suspension or termination of this contract, as provided in Sections 17 and 18 of this contract. SECTION 10. INDEPENDENT CONTRACTOR It is expressly understood and agreed by the parties hereto that Department is contracting with Contractor as an Independent Contractor, and that Contractor, as such, agrees to hold Department harmless and to indemnify Department from and against any and all claims, demands, and causes of action of every kind and character which may be asserted by any third party occur- ring or in any way incident to, arising out of, or in connection with the services to be performed by Contractor under this contract. SECTION 11. SUBCONTRACTS Contractor may subcontract for the performances described in this contract without obtaining Department's prior written approval. Contractor, in subcontracting for any performances described in this contract, understands and agrees that in entering into such subcontracts, Department is in no way liable to Contractor's subcontractors.. €ontractor further understands and agrees that it shall ensure that the performances rendered under all sub- contracts are rendered so as to comply with all the terms of this contract, as if such performances were rendered by Contractor. SECTION 12. CONFLICT OF INTEREST ,- - .. .', A. Contractor covenants that neither it nor any member of its governing body presently has any interest or shall acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of this contract. Contractor further covenants that in the performance of this contract no person having such interest shall be employed or appointed by Contractor. B. No person (i) who is an employee, agent, consultant, officer, or elected or appointed official of Contractor and who exercises or has exercised any functions or responsibilities with respect to assisted rehabilitation activi- ties or (ii) who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a per- sonal or financial interest or benefit, direct or indirect, in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. C. Contractor's employees, officers, and/or agents shall neither solicit nor accept gratuities, favors, or anything of monetary value from subcontractors, or potential subcontractors. SECTION 13. SECTARIAN ACTIVITY None of the performances rendered by Contractor under this contract shall involve, and no portion of the funds received by Contractor under this contract, shall be used in support of any sectarian or religious activity, PAGE 6 OF 11