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HomeMy WebLinkAbout1994-06-21; City Council; 12740; APPROVAL OF 1993-94 SUBRECIPIENT AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 I) CITY COUNCIL RESOLUTION NO. 9 4 - 16 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAE CALIFORNIA, APPROVING A SUBRECIPIENT AGREEMENT WITH THI CARLSBAD UNIFIED SCHOOL DISTRICT FOR THE CITY OF CARLSBAD' 1993-94FEDERAL COMMUNI TY DEVELOPMENT BLOCK GRANT PROGRAn WHEREAS, the City Council of the City of Carlsbad, California, has considered tk required subrecipient agreement with the Carlsbad Unified School District for 1993-9 Community Development Block Grant funds; and WHEREAS, the City Council has taken all testimony into account. NOW, THEREFORE, BE IT RESOLVED as follows: 1. 2. That the City Council has approved the 1993-94 Communi1 Development Block Grant Subrecipient Agreement with the Carlsbi Unified School District. The agreement is on file in the City Clerk Office. That the above recitations are true and correct. PASSED, APPROVED AND ADOPTED by the City Council of the City of Carlsbad, California, on the - 21 st day of vote, to wit: JUNE , 1994, by the following AYES: Council Members Lewis, Stanton, Kulchin, Nygaard, Finnila NOES: None ABSTAIN: None ABSENT: None AITEST: AI,ETHA (l3k?&vdW L. RAUTENKRANZ, City C1 rk KAREN R. KWTZ, Assistant City Clerk - L -d 'RITE IT- DON'T SA1 ,T! Date 6/27 0 Reply Wanted UNO Reply Necessary TO Isabelle From Karen We need to conform the Resolution. The vote was 5/0. Do not process the Agreement for signature, as it will be superceded by a revised Agreement which will have to go back to Council for approval. However, you can file the original agreement with a note to file, explaining the matter. 6 PRI AIGNER FORM NO. 55032 c 0 -. .. AGREEMENT BETWEEN THE CITY OF CARLSBAD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND CARLSBAD HIGH SCHOOL FOR 1993-94 THIS AGREEMENT, made and entered into as of this day of ,1994, by and between the CITY OF CARLSBAD, a municip: corporation, hereinafter referred to as "City", and CARLSBAD HIGH SCHOOL, municipal corporation, hereinafter referred to as "Subrecipient". RECITALS WHEREAS, the City has the need to provide a safe recreational area for childre of low/moderate income families within Carlsbad; and, WHEREAS, the Subrecipient can provide a safe recreational area for the childre of Carlsbad with some assistance from the City; WHEREAS, the U.S. Department of Housing and Urban Development ha provided the City with environmental clearance to release the funds for this projeci NOW, THEREFORE, in consideration of these recitals and the mutual covenant contained herein, City and Subrecipient agree as follows: 1. STATEMENT OF WORK The City has allocated federal 1993-1 994 Community Development Block Grar (CDBG) funds, in the amount of thirty thousand dollars ($30,000) to th Subrecipient to assist with the costs associated with improving the existin lighting system of the Subrecipient's stadium facility located at 3557 Monro Street in Carlsbad, California. The improvements to the existing lighting system shall include removal of th existing lights and replacement with new lights, utilizing existing light pole: correcting or replacing the existing electrical system, and associated installatio and labor costs. The City of Carlsbad will fund the costs of the new light: other required hardware or materials associated with the improvement of th subject facility's lighting system, and general supervision of the lighting syster improvements. 3 e a _. .. Every effort shall be made by the Subrecipient to expend the allocated funds ii their entirety by September 30, 1994. If the Subrecipient will be unable tl expend all of the funds allocated to the project by the noted date, thl Subrecipient shall request an extension from the City for continued use of th funds on the approved project. Based on progress made by the Subrecipien towards completing the subject project, the City will either agree to grant thl extension or notify the Subrecipient that the funds must be reallocated tc another eligible project due to slow project progress. 2, DJSBURSEMENT OF FUNDS The City shall reimburse the Subrecipient with CDBG funds for a portion of th actual costs of lights and other hardware or materials associated with th improvements to the subject facility's lighting system, as outlined in Paragrap 1994. The reimbursements for costs shall not exceed a total of $30,000. Th City shall not provide any payments/reimbursements in advance of actuz expenditures by the Subrecipient. The subrecipient shall be eligible to receive a maximum of $30,000 up0 providing proof of eligible expenditures. To receive additional funds, th Subrecipient must meet either of the following conditions: a. 1 above for the period beginning October 1 I 1993 and ending September 3C Provide proof of a one dollar ($1 ) for one dollar ($1 ) match to receive u to a maximum of $30,000 in funds from the City's CDBG program; o Provide the necessary labor required for removal of existing light: installation of new lights and/or repair of the existing electrical system c a value not less than the otherwise required one dollar ($1 ) for one doll; (SI) match and proof of such valuation. b. The CDBG funds identified within this agreement may be used fc improvements to the Subject facility's lighting system only. The CDBG fund may not be used for general administration expenses for operation of th Subrecipient's facility. The Subrecipient shall submit a "Reimbursement Request" to the City to reque5 payment for the costs of lights and other necessary hardware or materials fc the improvement of the Subrecipient's stadium lighting system. Each reque: for reimbursement shall include documentation to verify expenditure of fund are consistent with the project description/definition as approved by the Cit Council. Prior to receiving reimbursement, the City will verify that th Subrecipient has met all applicable regulations for the project. -4: 2 0 m ,. .. Payroll records, receipts and paid invoices, including an itemized statement c all costs, are samples of appropriate methods of reimbursement documentatior The Subrecipient may request reimbursements anytime after this agreement i approved by the City Council and continue until the expiration date, or amende expiration date, of this agreement. 3. PROGRAM INCOME The Subrecipient shall report, to the City, any interest, or other income, earne as a direct result of the use of federal CDBG funds for the improvement of th stadium lighting system. All reported program income may be retained by th Subrecipient for costs related to the improvement of the stadium lightin system. However, the program income, retained by the Subrecipient, must b expended before additional funds are requested from the City. Th requirements are set forth in the federal regulations Sections 570.504 (c) whic are incorporated herein by reference. 4. LABOR, MATERIALS AND SUPPLIES: The Subrecipient shall furnish all labor, materials and services and bear a expenses necessary to complete the improvement of the stadium lightin system as outlined in this agreement. Under this agreement, the City's on1 financial obligation to the Subrecipient is to provide the CDBG funds of $30,001 maximum as allocated by the City Council for program year 1993-94. 5. RECORDS AND REPORTS The Subrecipient shall submit quarterly "Progress Reports" during the prograr year beginning October 1, 1993 and ending September 30, 1994. The fin; progress report is due no later than October 15, 1994. The report must includ sufficient information to assist the City in monitoring the Subrecipient' performance in improving the stadium lighting system. The Subrecipient mus demonstrate satisfactory performance prior to reimbursement for expenditures At a minimum, the performance reports shall include the following informatio regarding utilization of the facilities by children of low/moderate incom families: a. b. c. d. e. Total number of children participating in programs during reported perio Number of lowlmoderate income children participating in the prograr during the reporting period Age and ethnic background of children Summary of program(s) provided to children Total number of participants form Carlsbad 3 t c/ 0 0 I. .. The Subrecipient shall maintain separate accounting records for the feder; CDBG funds provided by the City. The City, Federal Grantor Agency Comptroller General of the United States, or any of their duly-authorize1 representatives shall have access to all books, documents, papers and record maintained by the Subrecipient which directly pertain to the above project fo the purpose of audit, examination, excerpts and transcriptions. Unless otherwise notified by the City, the Subrecipient shall retain all financia records, supporting documents and statistical reports related to the projec identified under this agreement until September 30, 1997. All records subjec to an audit finding must be retained for three (3) years from the date the findin! is made or until the finding has been cleared by appropriate officials and thc Subrecipient has been given official written notice. If the Subrecipient shall receive more than $25,000 in total federal funds in onc fiscal year from the City of Carlsbad andlor any other city or agency, thc Subrecipient is required to prepare and submit to the City a Single Audit Report As required by the Federal Single Audit Act, the Subrecipient shall be requirec to submit, to the City, a comprehensive financial audit prepared by ar independent, neutral third-party auditor. The audit shall cover financia operations of the Subrecipient for the period beginning July 1 , 1993 and endins June 30, 1994 and is due not later than one year after expiration of the agreement. The Subrecipient shall also be required to submit a second audit foi the period covered under fiscal year beginning July 1, 1994 and ending Junc 30, 1995 for any funds received in fiscal year 1994-95 per this agreement. 6. PROGRAM REQUIREMENTS The Subrecipient shall adhere to the terms of the City's CDBG Application and Subrecipient Agreement and with assurances and agreements made, by the City, PO the United States Department of Housing and Urban Development. The Subrecipient shall comply with applicable Uniform Administrative Requirements as described in Section 570.502 of the federal regulations for the CDBG Program; the federal requirements are set forth, by reference, as a provision of this agreement. The Subrecipient shall carry out all activities in compliance with all Federal laws and regulations as described in Subpart K, such as labor standards (Davis Bacon Act), fair housing requirements of the CDBG Program Regulations, except that: a. The Subrecipient will not assume the City's environmental responsibilities as described in Section 570.604; and k 4 e e .. .. b. The Subrecipient will not assume the City’s responsibility for initiatin! the review process required under the provisions of Executive Orde 12372 described at 570,612 of the Code of Federal Regulations, The provisions of Subpart K, of the CDBG Program Regulations, are set forth by reference, as a condition of this agreement. The Subrecipient shall comply with all federal regulations related to the use Q CDBG funds by religious organizations, if applicable to this agreement and thl approved project outlined herein. 7. CHANGES IN USE OF FUNDS Changes in the use of CDBG funds must be approved by the City Council. I the Subrecipient desires a change in the use of the CDBG funds followin! approval of this agreement, a written request must be submitted to the City fo review by the Council, No change in use of the CDBG funds will be permittel by the City without prior formal approval by the Council. 8. NONDISCRIMINATION CLAUSE The Subrecipient shall comply with all state and federal laws regardin! nondiscrimination in the provision of services and the equal opportuniti employment of personnel. 9. SUSPENSION AND TERMINATION OF AGREEMENT In accordance with Section 24, Parts 85.43 and 85.44 of the Code of FederE Regulations, this agreement may be suspended or terminated if the Subrecipien fails to comply with any term(s) of the award and/or the award is terminate( Regulations are set forth, by reference, as provisions of this agreement. for convenience. Section 24, Parts 85.43 and 85.44 of the Code of FederE 10. REVERSION OF ASSETS Upon expiration of the agreement, the Subrecipient shall transfer to the City ani CDBG funds on hand at the time of expiration and any accounts receivablc attributable to the use of CDBG funds. The Subrecipient shall be required tc use lights and other required hardware and materials, purchased in excess o $5,000 per item, for the purpose of improving the stadium lighting system a the Subrecipient facility: 5 - / 0 0 .. .. a) For a minimum period of five (5) years following expiration of thi agreement. If the item is not used for a minimum of five (5) years for the purposl outlined within this agreement or for an alternate purpose which meet one of the national objectives, as approved by the City, the item shall bl disposed of in a manner that results in the City being reimbursed in thl value attributable to expenditures of non-CDBG funds for acquisition o improvement to the item. Reimbursement is not required after the perioc of time specified in paragraph (a) of this Section. b) amount of the current market value of the item less any portion of th 11. HOLD HARMLESS AGREEMENT The City, its officers, and employees shall not be liable for any claims, liabilities penalties, fines, or any damage to goods, properties, or effects of any persor whatsoever, nor for personal injuries or death caused by, or claimed to havt been caused by, or resulting from, any intentional or negligent acts, errors o omission of Subrecipient or Subrecipient's agents, employees, o representatives in completion of the project outlined in this agreement. Subrecipient agrees to defend, indemnify, and save free and harmless the Citl and its officers and employees against any of the foregoing liabilities or claim! of any kind and any cost/and expense that is incurred by the City on accoun of any of the foregoing liabilities, including liabilities or claims by reason o alleged defects in any plans and specifications for the project or facility. 12. ASSIGNMENT OF AGREEMENT The Subrecipient shall not assign this agreement or any monies due thereunde without the prior written consent of the City. 13. SUCCESSORS OR ASSIGNS Subject to the provisions of this Subrecipient Agreement Paragraph 11, "Holc Harmless Agreement," all terms, conditions, and provisions hereof shall insurE to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. 14. INSURANCE The Subrecipient shall obtain and maintain policies of general liability insurance and a combined policy of worker's compensation and employers liabilitg 6 I ( a. e 0 .. insurance from an insurance company authorized to do business in the State o California which meets the requirements of City Council Resolution No. 90-9( in an insurable amount of not less than one million dollars ($1,000,000) each unless a lower amount is approved by the City Attorney or the City Manager This insurance shall be in force during the term of this agreement and shall no be canceled without thirty (30) days prior written notice to the City sent by certified mail. The City shall be named as an additional insured on these policies. Thl. Subrecipient shall furnish certificates of insurance to the City beforc commencement of work. IN WITNESS WHEREOF the parties hereto have caused this agreement to bc executed as of the day and year first written above. CARLSBAD HIGH SCHOOL, a municipal corporation, CITY OF CARLSBAD, a municipal corporation of the State of California CLAUDE A. "BUD" LEWIS, MAYOR ATTEST: ALETHA L. RAUTENKRANZ, CITY CLERK APPROVED AS TO FORM: RON BALL, CITY ATTORNEY 7 0 g&pp THE CITY COUNCIL *. June 20, 1994 a GC ob TO: CITY MANAGER FROM: SENIOR MANAGEMENT ANALYST, REDEVELOPMENT CDBG SUBRECIPIENT AGREEMENT WITH THE CARLSBAD SCHOOL DISTRICl Based on my conversation this morning with you, Councilmember Finnila and the City Attome! staff has revised the subrecipient agreement between the City and the Carlsbad Unified Schol District for use of CDBG funds for lighting improvements to the high school stadium. Attacht is a revised agreement which highlights the "strike outs" and additiondchanges to the text of tl, agreement. In reviewing the agreement following our conversation, Staff also realized that the section withj the agreement regarding "disbursement of funds" needed additional clarification in terms of tl matching funds requirement that the Carlsbad School District must fulfill prior to receivk reimbursement for project eligible expenditures. Staff will be prepared to address the subject changes during the City Council meeting. If the! changes are not acceptable, please let me know. &WAIN c: City Attorney Housing and Redevelopment Director %A **&9 $L4U\ -M+ 0 0 -. a. AGREEMENT BETWEEN THE CITY OF CARLSBAD AND CARLSBAD - FOR 1993-94 FEDERAL COMMUNITY DE FuM)S THIS AGREEMENT, made and entered into as of this day of , 1994, by and between the CITY OF CARLSBAD, a municipa corporation, hereinafter referred to as "City", and CARLSBAD - , a municipal corporation, hereinafter referred to as "Subrecipient". RECITALS WHEREAS, the City has the need to provide a safe recreational area for children o low/moderate income families within Carlsbad; and, WHEREAS, the Subrecipient can provide a safe recreational area for the children o Carlsbad with some assistance from the City; WHEREAS, the U.S. Department of Housing and Urban Development has provided th City with environmental clearance to release the funds for this project; NOW, THEREFORE, in consideration of these recitals and the mutual covenant contained herein, City and Subrecipient agree as follows: 1. STATEMENT OF WORK The City has allocated federal 1993-1994 Community Development Block Grant (CDBC funds, in the amount of thirty thousand dollars ($30,000) to the Subrecipient to ass;( ts associated with improving the existing lighting system of the Subrecipient' stadium facility located at 3557 Monroe Street in Carlsbad, California. The improvements to the eisthg lighting system shall include removal of the existin lights and replacement with new lights, utilizing existing light poles, correcting ( replacing the existing electri d associated installation and labor costs. Tl the costs of the new lights, other City of Carlsbad will fund e improvement of the - .. lighting system, and general supervision of the lighting syste improvements. t 0 0 #I 1. Every effort shall be made by the Subrecipient to expend the allocated funds in thei entirety by September 30, 1994. If the Subrecipient will be unable to expend all of th funds allocated to the project by the noted date, the Subrecipient shall request a extension from the City for continued use of the funds on the approved project. Base on progress made by the Subrecipient towards completing the subject project, the Cit will either agree to grant the extension or notify the Subrecipient that the funds must b reallocated to another eligible project due to slow project progress. 2. DISBURSEMENT OF FUNDS The City shall reimburse the Subrecipient with CDBG funds for a portion of the actur costs of lights and other hardware or materials associated with the improvements to th subject facility's lighting system, as outlined in Paragraph 1 above for the perk beginning October 1, 1993 and ending September 30, 1994. The reimbursements fa costs shall not exceed a total of $30,000. The City shall not provide an ipient . . . . . . . . . The subrecipient shall be a. Provide proof of a one dolIar ($1) for one dollar ($ to a maximum of $30,000 in funds from the City's The CDBG funds identified within this agreement may be used for improvements to tl subject facility's lighting system only. The CDBG funds m e used facility The Subrecipient shall submit a "Reimbursement Request" to the City to request payme for the costs of lights and other necessary hardware or materials for the improvement the Subrecipient's stadium lighting system. Each request for reimbursement shall inclui documentation to v description/definition by the City Council. Subrecipient has met all applicable regulations for the project. 2 0 0 .e Payroll records, receipts and paid invoices, including an itemized statement of all costs are samples of appropriate methods of reimbursement documentation. The Subrecipien may request reimbursements anytime after this agreement is approved by the Citj Council and continue until the expiration date, or amended expiration date, of thi, agreement. 3. PROGRAM INCOME The Subrecipient shall report, to the City, any interest, or other income, earned as i direct result of the use of federal CDBG funds for the improvement of the stadium lighting system. All reported program income may be retai Subrecipient for costs related to the improvement of the stadium lighting system However, the program income, retained by the Subrecipient, must be expended befon additional funds are requested from the City. The requirements are set forth in thl federal regulations Sections 570.504 (c) which are incorporated herein by reference. 4. LABOR. MATERIALS AND SUPPLIES; The Subrecipient shall furnish all labor, materials and services and bear all expense necessary to complete the improvement of the stadium lighting system as outlined in thi agreement, Under this agreement, the City's only financial obligation to the Subrecipier Council fc is to provide the program year 19 5. RECORDS AND REPORTS The Subrecipient shall submit quarterly "Progress Reports" during the program ye; beginning October 1, 1993 and ending September 30, 1994. The final progress rep is due no later than October 15, 1994. The report must include sufficient informatio to assist the City in monitoring the Subrecipient's performance in improving the stadiui lighting system. The Subrecipient must demonstrate satisfactory performance prior 1 reimbursement for expenditures. At a minimum, the performance reports shall include the following information regardir utilization of the facilities by children of low/moderate income families: a. b. c. d. e. Total number of children participating in programs during reported period Number of low/moderate income children participating in the program during tl reporting period Age and ethnic background of children Summary of program(s) provided to children Total number of participants form Carlsbad 3 a e 6, The Subrecipient shall maintain separate accounting records for the federal CDBG funds provided by the City, The City, Federal Grantor Agency, Comptroller General of the United States, or any of their duly-authorized representatives shall have access to all books, documents, papers and records maintained by the Subrecipient which directly pertain to the above project for the purpose of audit, examination, excerpts and transcriptions. Unless otherwise notified by the City, the Subrecipient shall retain all financial records, supporting documents and statistical reports related to the project identified under this agreement until September 30, 1997. All records subject to an audit finding must be retained for three (3) years from the date the finding is made or until the finding ha5 been cleared by appropriate officials and the Subrecipient has been given official writter notice. If the Subrecipient shall receive more than $25,000 in total federal funds in one fisca year from the City of Carlsbad and/or any other city or agency, the Subrecipient i required to prepare and submit to the City a Single Audit Report. As required by th Federal Single Audit Act, the Subrecipient shall be required to submit, to the city, comprehensive financial audit prepared by an independent, neutral third-party auditor The audit shall cover financial operations of the Subrecipient for the period beginnin July 1, 1993 and ending June 30, 1994 and is due not later than one year after expiratio of the agreement. The Subrecipient shall also be required to submit a second audit fa the period covered under fiscal year beginning July 1, 1994 and ending June 30, 199 for any funds received in fiscal year 1994-95 per this agreement. ’ 6. PROGRAM REOUIREMENTS The Subrecipient shall adhere to the terms of the City’s CDBG Appiication ar Subrecipient Agreement and with assurances and agreements made, by the City, to tl United States Department of Housing and Urban Development. The Subrecipient shall comply with applicable Uniform Administrative Requirements i described in Section 570.502 of the federal regulations for the CDBG Program; t federal requirements are set forth, by reference, as a provision of this agreement. The Subrecipient shall cany out all activities in compliance with all Federal laws a regulations as described in Subpart K, such as labor standards (Davis Bacon Act), fi housing requirements of the CDBG Program Regulations, except that: a. The Subrecipient will not assume the City’s environmental responsibilities described in Section 570.604; and 4 .I c e (1 b. The Subrecipient will not assume the City’s responsibility for initiating the revieh process required under the provisions of Executive Order 12372 described ai 570.612 of the Code of Federal Regulations. The provisions of Subpart K, of the CDBG Program Regulations, are set forth, bj reference, as a condition of this agreement. The Subrecipient shall comply with all federal regulations related to the use of CDBC funds by religious organizations, if applicable to this agreement and the approved projec outlined herein. 7. CHANGES IN USE OF FUNDS Changes in the use of CDBG funds must be approved by the City Council. If thl Subrecipient desires a change in the use of the CDBG funds following approval of thi agreement, a written request must be submitted to the City for review by the Council No change in use of the CDBG funds will be permitted by the City without prior form2 approval by the Council. 8. NONDISCRIMINATION CLAUSE The Subrecipient shall comply with all state and federal laws regarding nondiscriminatio in the provision of services and the equal opportunity employment of personnel. 9. SUSPENSION AND TERMINATION OF AGREEMENT In accordance with Section 24, Parts 85.43 and 85.44 of the Code of Federi Regulations, this agreement may be suspended or terminated if the Subrecipient fails t comply with any term(s) of the award and/or the award is terminated for convenienct Section 24, Parts 85.43 and 85.44 of the Code of Federal Regulations are set forth, b reference, as provisions of this agreement. 10. REVERSION OF ASSETS Upon expiration of the agreement, the Subrecipient shall transfer to the City any CDE funds on hand at the time of expiration and any accounts receivable attributable to t e Subrecipient shall be required to hardware and materials, e purpose of improving the at the Subrecipient facility: 5 r ** a 0 a) for a minimum period of five (5) years following expiration of this agreement. If the item is not used for a minimum of five (5) years for the purpose outlined within this agreement or for an alternate purpose which meets one of the national objectives, as approved by the City, the item shall be disposed of in a manner thal results in the City being reimbursed in the amount of the current market value oi the item less any portion of the value attributable to expenditures of non-CDBG funds for acquisition or improvement to the item. Reimbursement is no1 required after the period of time specified in paragraph (a) of this Section. b) 11. HOLD HARMLESS AGREEMENT The City, its officers, and employees shall not be liable for any claims, liabilities penalties, fines, or any damage to goods, properties, or effects of any person whatsoever nor for personal injuries or death caused by, or claimed to have been caused by, o resulting from, any intentional or negligent acts, errors or omission of Subrecipient o Subrecipient's agents, employees, or representatives in completion of the project outline in this agreement. Subrecipient agrees to defend, indemnify, and save free and harmless the City and i officers and employees against any of the foregoing liabilities or claims of any kind an any cost/and expense that is incurred by the City on account of any of the foregoin specifications for the project or facility. liabilities, including liabilities or claims by reason of alleged defects in any plans an 12. ASSIGNMENT OF AGREEMENT The Subrecipient shall not assign this agreement or any monies due thereunder witho the prior written consent of the City. 13. SUCCESSORS OR ASSIGNS Subject to the provisions of this Subrecipient Agreement Paragraph 11, "Hold Harmlc Agreement," all terms, conditions, and provisions hereof shall insure to and shall bi each of the parties hereto, and each of their respective heirs, executors, administrato successors, and assigns. 14. INSURANCE The Subrecipient shall obtain and maintain policies of general liability insurance an combined policy of worker's compensation and employers liability insurance from i 6 l *- ' a e 1 insurance company authorized to do business in the State of California which meets thl requirements of City Council Resolution No. 90-96 in an insurable amount of not les than one million dollars ($l,OoO,OOO) each, unless a lower amount is approved by thl City Attorney or the City Manager. This insurance shall be in force during the term of this agreement and shall not b canceled without thirty (30) days prior written notice to the City sent by certified mail The City shall be named as an additional insured on these policies. The Subrecipier shall furnish certificates of insurance to the City before commencement of work. IN WITNESS WHEREOF the parties hereto have caused this agreement to be execute as of the day and year first written above. CARLSBAD - , a municipal corporation CITY OF CARLSBAD, a municipal corporation of the State of California CLAUDE A. "BUD" LEWIS, MAYOR ATTEST: ALETHA L. RAUTENKRANZ, CITY CLERK APPROVED AS TO FORM: RON BALL, CITY ATTORNEY 7