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2. Automobile Liability Coverage. SUBRECIPIENT shall also obtain and maintain, during <br />the effective period of this Memorandum of Understanding, broad form automobile liability coverage <br />with a $1,000,000 limit unless reduced by CITY, which applies to both owned/leased and non -owned <br />automobiles used by SU13RECIPIENT employees or participants in performance of this Memorandum of <br />Understanding, or, in the event that SUBRECIPIENT will not utilize such owned/leased automobiles but <br />intends to require employees, participants or other agents to utilize their own automobiles in the <br />.performance of this Memorandum of Understanding, SUBRECIPIENT shall secure and maintain on file <br />from all such employees, participants, or agents as self -certification of automobile insurance coverage, <br />Governmental entities may provide proof of self-insurance. <br />3. Workers' Compensation. If SUBRECIPIENT is an "employer", as set forth in California <br />Labor Code Section 3300 et seq., or utilizes participants as "employees," as set forth in California Labor <br />Code Section 3350 et seq., SUBRECIPEENT shall obtain and keep in force during the term of this <br />Memorandum of Understanding full Workers' Compensation insurance coverage for injuries suffered by <br />participants, Said insurance policy shall guarantee CITY at least thirty (30) days written notice of <br />cancellation or modification, <br />4. Equipment Covera e. SUBRECIPIENT shall purchase a policy or policies of insurance <br />covering loss or damage to any and all Equipment provided to or purchased by SUBRECIPIENT in <br />accordance with this Memorandum of Understanding , Said insurance shall be in the amount of the full <br />replacement value thereof, providing protection against the classification of fire, extended coverage, <br />vandalism, malicious mischief, theft, and special extended perils. Governmental entities may substitute a <br />certificate of self-insurance. <br />5. Proof of Insururce. Certificates and endorsements must be submitted and approved by <br />CITY prior to any work under this Memorandum of Understanding. SUBREaPffiNT understands that <br />CITY will make no payments under this Memorandum of Understanding until the required certificates <br />endorsements have been approved by CITY. <br />XI. REVERSION OF ASSETS <br />A. Upon the expiration of this Memorandum of Understanding , SUBRECIPIENT shall transfer to <br />CITY any CDBG-CV funds on hand at the time of the expiration of th s Memorandum of Understanduig as <br />well as any accounts receivable attributable to the use of CDBG-CV funds. [24 CFR 570.503(b)(7)] <br />B. Any real property under SUBRECIPIENT's contivi that was acquired or improved in whole or in <br />part with CDBG-Cv 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 Memorandum of <br />Understanding, or for such longer period of time as determined to be appropriate by CITY, or <br />2. If not used in accordance with subparagraph I above, SUBRECIPIENT shall pay to <br />CITY an amount equal to the current fair market value of the property less any portion of the value <br />attributable to the expenditure of non-CDBG funds for acquisition of, or improvement to, the property, Such <br />payment is program income to CITY. <br />C. Subject to the obligations set forth herein, title to equipment acquired under the terms of this <br />Memorandum of Understanding will vest upon acquisition in SUBRECIPIENT. When said equipment <br />13 <br />