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6/10 <br />E. The grant of funds under this Agreement may be terminated due to the non- <br />performance of' SUBRECIPIENT and /or failure of SUBRECIPENT to perform the work de- <br />scribed in Exhibits A and B or failure to sleet the performance standards and program goals set <br />Furth therein. <br />F. In the event this Agreement is terminated as set forth in Section X.A through X.E, in- <br />clusive, SUBRECIPIENT agrees to immediately return to CITY, upon CITY's demand and prior <br />to any adjudication of SUBRECIPIENT's rights, any and all funds not used under this Agree- <br />ment. <br />XII. LIMITATION OF FUNDS <br />The United States of America, through HUD, may, in the future, place programmatic or <br />fiscal limitations on the use of ESG funds which limitations are not presently anticipated. Ac- <br />cordingly, CITY reserves the right to revise this Agreement in order to take account of actions <br />affecting HUD program funding. In the event of funding reduction, CITY may, in its sole and <br />absolute discretion, reduce the budget Of this Agreement as a whole or as to costs category, may <br />limit the rate of SUBRECIPIENT's aLlthOrlty to commit and spend funds, or may restrict SUB- <br />RECIPIENT'S use of' both its uncommitted and its unspent funds. Where HUD has directed or <br />requested CITY to implement a reduction in funding, in whole or as to a cost category, with re- <br />spect to funding for this Agreement. CITY's City Manager or delegate is authorized to act for <br />CITY in implementing and effecting such a reduction and in revising, modifying, or amending <br />the Agreement for such purposes. Ifssuch a reduction in fielding occurs, SUBRECIPIENT shall <br />Liu allowed to de -scope accordingly. Where CITY has reasonable grounds to question SUBRE- <br />CIPIENT's fiscal accountability, financial soundness, or compliance with this Agreement, CITY <br />may suspend the operation of this Agreement for up to sixty (60) days upon five (5) days' written <br />notice to SUBRECIPIENT of its intention to so act pending an audit or other resolution of such <br />questions. In no event. however, shall any revisions made by CITY affect expenditures and le- <br />gally binding commitments made by SUBRECIPIENT before it received notice Of such revision, <br />provided that such amounts have been committed in good faith and are otherwise allowable and <br />that such commitments are consistent with HUD cash withdrawal guidelines. <br />X1I1. INSURANCE <br />A. SUBRECIPIENT shall furnish CITY's Clerk Of the Council with an insurance certifi- <br />cate from its workers' compensation insurance carrier certifying that it carries such insurance and <br />that the policy shall not be canceled nor the coverage reduced except upon thirty (30) days prior <br />notice to CITY. <br />B. SUBRECIPIENT shall undertake self-insurance, or shall obtain, at its sole cost, a pol- <br />icy or policies of coninlercial general liability insurance, or equivalent form, with a combined <br />single liniit of not less than $1 Million Dollars per Occurrence. <br />Such insurance shall: (1) name Lhe City of Santa Ana, its officers, agents, employees and <br />volunteers as additional insureds; (2) be primary with respect to insurance or self - insurance pro- <br />21 <br />