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5/11/10 <br />Agreement, SUBRECIPIENT agrees to obtain and maintain employer's liability insurance with <br />limits not I ess t han $1, 000,000 pe r a ccident. If S UBRECIPIENT h as no employees, no r <br />workers' co mpensation coverage, i t m ust ex ecute a D eclaration av ailable from t he C ITY, an d <br />update as is necessary. <br />B. SUBRECIPIENT s hall u ndertake s elf-insurance, or s hall obt ain, a t its s ole c ost, a <br />policy or policies of commercial general liability insurance, or equivalent form, with a combined <br />single limit of not less than $1,000,000 per occurrence. <br />Such i nsurance s hall: ( 1) na me t he C ity of S anta A na, i is of ficers, a gents, <br />representatives, employees and volunteers as additional insured's; (2) be primary with respect to <br />insurance or self-insurance programs maintained by the CITY; (3) contain standard separation of <br />insured's pr ovisions; a nd ( 4) give to C ITY p rompt a nd time ly n otice of c laim ma de o r s uit <br />instituted arising out of SUBRECIPIENT's operations hereunder. <br />SUBRECIPIENT s hall: (a) p rior to a xercising a ny r ight u nder th is A greement, <br />furnish properly executed certificates of insurance and additional insured endorsement to the <br />CITY which shall clearly evidence all coverages required above; (b) provide that such insurance <br />shall not be materially changed or terminated except on 30 days prior written notice to the CITY; <br />(c) m aintain s uch i nsurance f or t he pe riod c overed b y t his A greement; a nd ( d) r eplace s uch <br />certificates for policies expiring prior to the expiration of this Agreement. <br />XI. REVERSION OF ASSETS <br />A. Upon the expiration of this Agreement, SUBRECIPIENT shall transfer to CITY any <br />CDBG f unds on ha nd a t t he time of the a xpiration of this A greement a s w ell a s a ny a ccounts <br />receivable attributable to the use of CDBG funds. [24 CFR 570.503(b)(8).] <br />B. Any real property under SUBRECIMENT's control that was acquired or improved <br />in whole or in part with CDBG funds in excess of $25,000.00 must either be: <br />1. Used, where CITY has given written approval, to meet one of the national <br />objectives stated in 24 CFR 570.208 until five (5) years after expiration of this Agreement, or for <br />such longer period of time as determined to be appropriate by CITY; or <br />2. If not us ed i n a ccordance w ith s ubparagraph A a bove, S UBRECIPIENT <br />shall pay to CITY an amount equal to the current fair market value of the property less any portion <br />of the value attributable to the expenditure of non-CDBG funds for acquisition of, or improvement <br />to, the property. Such payment is program income to CITY. <br />C. Subject t o t he ob ligations s et f orth he rein, t itle t o e quipment a cquired un der t he <br />terms o f this A greement w ill vest up on a cquisition i n SUBRECIPIENT. W hen said a quipment <br />which has been acquired in accordance with this Agreement and all applicable regulations is no <br />longer needed for said program, disposition of said equipment will be made as follows: <br />12