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Subgrantee: SANTA ANA WORK CENTER WIA SUEGRANT AGREEMENT <br />Exhibit 86 <br />page 5 of 14 <br />SUHGRANT NO: K594792 <br />MODIFICATION NO: NEW <br />state and local law, for the award and monitoring of contracts which contain acceptable <br />standards for insuring accountability. <br />c). The system for awarding contracts will contain safeguards to insure that the Subgrantee does <br />not contract with any entity whose officers have been convicted of fraud or misappropriation <br />of funds within the last two years. <br />6. Insurance <br />Except for city and county governmental entities, Subgrantees must provide the Subgrantor <br />evidence of the coverage specified in a, b, c and d below. The evidence of coverage shall <br />include the registration number of the subgrant agreement for identification purposes. <br />a) . Subgrantee will obtain a fidelity bond in an amount of not less than prior to <br />the receipt of funds under this subgrant agreement. If the bond is canceled or reduced, <br />Subgrantee will immediately so notify the Subgrantor. In the event the bond is canceled <br />or revised, the Subgrantor will make no further disbursements until it is assured that <br />adequate coverage has been obtained. <br />b). Subgrantee will provide general liability insurance with a combined limit of $1,000,000 or <br />public liability and property damage coverage with a combined limit of not less than <br />$1,000,000. <br />c). Subgrantee will provide broad form automobile liability coverage with limits as set forth in <br />(b) above, which applies to both owned /leased and non -owned automobiles used by the Subgrantee <br />or its agents in performance of this subgrant agreement, or, in the event that the Subgrantes <br />will not utilize owned /leased automobiles but intends to require employees, trainees or other <br />agents to utilize their own automobiles in performance of this subgrant agreement, Subgrantee <br />will secure and maintain on file from all such employees, trainees or agents a <br />self- certification of automobile insurance coverage. <br />d). Subgrantes will provide Worker's Compensation Insurance, which complies with provisions of <br />the California Labor Code, covering all employees of the Subgranbee and all participants <br />enrolled in work experience programs. Medical and Accident Insurance will be carried for <br />those participants not qualifying as "employee" (Section 3350, at seq. of the California <br />Labor Code) for Worker's Compensation. <br />e). The Subgrantor will be named as "Certificate Holder" of policies secured in compliance with <br />paragraphs a -d above and will be provided certificates of insurance or insurance company <br />"binders" prior to any disbursement of funds under this subgrant agreement, verifying the <br />insurance requirements have been complied with. The coverage noted in b and c above must <br />contain the following clauses: <br />(1). Insurance coverage will not be canceled or changed unless 30 days prior to the effective <br />data of cancellation or change written notice is sent by the Subgrantee to: <br />Employment Development Department <br />WIA - Financial Management Unit <br />P.O. Box 826880, MIC 69 <br />Sacramento, CA 94280 -0001 <br />(2). State of California, its officers, agents, employees and servants are included as additional <br />insured, but only insofar as the operations under this subgrant agreement are concerned. <br />(3). The State of California is not responsible for payment of premiums or assessments on <br />this policy <br />7. Resolution <br />A county, city, district or other local public body must provide the state with a cony of a <br />resolution, order, motion, or ordinance of the local governing body which by law has authority <br />to enter into an agreement, authorizing execution of this subgrant agreement. Preferably <br />resolutions should authorize a designated position rather than a named individual. <br />8. Funding <br />It is mutually understood between the parties that this subgrant agreement may have been written <br />before ascertaining the availability of congressional and legislative appropriation of funds, <br />Ear the mutual benefit of both parties, in order to avoid program and fiscal delays which would <br />occur if the subgrant agreement was executed after that determination was made. <br />This subgrant agreement is valid and enforceable only if (1) sufficient funds are made available <br />by the State Budget Act of the appropriate state fiscal years covered by this subgrant agreement <br />Ear the purposes of this program and; (2) sufficient funds available to the state by the United <br />Ststes Government for the fiscal years covered by this subgrant agreement for the purposes of <br />this program. In addition, this subgrant agreement is subject to any additional restrictions, <br />Limitations, or conditions enacted by the Congress and L,e9 isl.a LUre or any statue enacted by the <br />