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business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts <br /> of all relevant data. Any deficiencies noted in audit reports must be fully cleared by Subrecipient <br /> within 30 days after receipt by Subrecipient. Failure of Subrecipient to comply with the above <br /> audit requirements will constitute a violation of this Agreement and may result in the <br /> withholding of future payments. Subrecipient hereby agrees to have an annual agency audit <br /> conducted in accordance with current City policy concerning Subrecipient audits and OMB <br /> Circular A-133. <br /> Section 5. Insurance. Subrecipient shall not commence any Program Activities under <br /> this Agreement until it has obtained all insurance required hereunder with a company or <br /> companies acceptable to City, nor allow any of its subcontractors to commence any Activities for <br /> the Program until all insurance required of Subrecipient and its subcontractor have been <br /> obtained. Subrecipient and its subcontractors shall take out and maintain at all times during the <br /> term of this Agreement the following policies of insurance: <br /> A. Worker's Compensation Insurance. Subrecipient shall furnish to City a copy of <br /> its policy of insurance as proof that it has taken out full worker's compensation insurance for all <br /> persons who it may employ directly or through subcontractors in carrying out the Program, in <br /> accordance with the laws of the State of California. In accordance with the provisions of <br /> California Labor Code Section 3700, every employer shall secure the payment of compensation <br /> to his employees. Subrecipient shall sign and file with City a certification as follows: <br /> "I am aware of the provisions in Section 3700 of the Labor Code which requires every <br /> employer to be insured against liability for workers compensation or to undertake self insurance <br /> in accordance with the provisions of that Code, and I will comply with such provisions of that <br /> Code, and I will comply with such provisions before commencing the performance of the <br /> Program described in this Agreement." <br /> B. Comprehensive General Liability Insurance. Throughout the term of this <br /> Agreement, at Subrecipient's sole cost and expense, Subrecipient shall keep, or cause to be kept, <br /> in full force and effect, for the mutual benefit of City and Subrecipient against claims and <br /> liabilities for personal injury, death, or property damage arising from Subrecipient's activities, a <br /> policy of liability insurance. Minimum coverage of one million dollars ($1,000,000) per <br /> occurrence and two million dollars ($2,000,000) aggregate for public liability, property damage <br /> and personal injury is required. City shall be named as an additional insured and the insurance <br /> policy shall include a provision prohibiting cancellation of said policy except upon thirty (30) <br /> days prior written notice to City. Such insurance shall be primary and non-contributing to any <br /> insurance or self-insurance maintained by City. Certificates of insurance and endorsements shall <br /> be delivered to City prior to commencement of the Program. <br /> C. Business Auto Liability Insurance. Throughout the term of this Agreement, <br /> Subrecipient shall maintain business auto Iiability coverage, with minimum limits of one million <br /> ($1,000,000) per occurrence, combined single limit for bodily injury liability and property <br /> damage liability. This coverage shall include all Subrecipient owned vehicles used to conduct <br /> Subrecipient Activities, hired and non-owned vehicles, and employee non-ownership vehicles. <br /> City shall be named as an additional insured and a certificate of insurance shall be delivered to <br /> City prior to commencement of the Program. <br /> Page 5 of 13 <br /> I:1caldjnrlAgreements116-17 PSA Agreement-Family Service Association 6.21.16.doc <br />