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(2) Limits. The SUBRECIPIENT shall maintain, at all times, the following minimum levels of <br />Insurance, and shall, without in any way altering its liability, obtain, pay for, and maintain insurance for the <br />coverages and amounts of coverage not less than those set forth below: <br />a. Workers' Compensation. Amount must comply with State and Federal Laws <br />b. Comprehensive General Liability. $1,000,000 combined single limit of liability for bodily <br />injuries, death, and property damage resulting from any one occurrence, including the following <br />coverages: <br />Premises and Operations; and <br />Broad Form Commercial General Liability Endorsement to include blanket <br />contractual liability (specifically covering, but not limited to, the contractual obligations <br />assumed by the SUBRECIPIENT); Personal Injury (with employment and contractual <br />exclusions deleted); and Broad Form Property Damages coverages. <br />C. The SUBRECIPIENT's self-insured retention or deductible per line of coverage shall not <br />exceed $25,000 without the permission of the CITY. <br />(3) Proof of Insurance. The SUBRECIPIENT shall furnish the CITY's Clerk of the Council with an <br />insurance certificate from its workers' compensation insurance carrier certifying that it carries such <br />insurance and that the policy shall not be canceled nor the coverage reduced except upon thirty (30) days <br />prior notice to the CITY. <br />The SUBRECIPIENT shall, prior to exercising any right under this AGREEMENT: <br />a . furnish properly executed certificates of insurance and additional insured endorsement to <br />the CITY which shall clearly evidence all coverages required above; <br />b . provide that such insurance shall not be materially changed or terminated except on thirty <br />(30) days prior written notice to the CITY; <br />c . maintain such insurance for the period covered by this AGREEMENT; and <br />d . replace such certificates for policies expiring prior to the expiration of this AGREEMENT. <br />(4) Company Rating. All insurance coverage shall be written with a company having an A.M. Best <br />Rating of "A" or better and financial size of VIII or larger. <br />(5) Failure to Comply. In the event of any failure by the SUBRECIPIENT to comply with these <br />provisions, the CITY may, on notice to the SUBRECIPIENT, suspend the program for cause until there is <br />full compliance. <br />K. Zoning. <br />The SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be <br />specifically zoned and permitted for such use(s) and activity(ies). Should the SUBRECIPIENT fail to have <br />the required land entitlement and/or permits, thus violating any local, state, or federal rules and regulations <br />relating thereto, the SUBRECIPIENT shall immediately make good-faith efforts to gain compliance with <br />local, state, or federal rules and regulations following written notification of said violation(s) from the CITY <br />or other authorized citing agency. The SUBRECIPIENT shall notify the CITY immediately of any pending <br />violations. Failure to notify the CITY of pending violations, or to remedy such known violation(s), shall <br />result in termination of grant funding hereunder. The SUBRECIPIENT must make all corrections required to <br />bring the facility/property into compliance with the law within sixty (60) days of notification of the <br />violation(s); failure to gain compliance within such time shall result in termination of grant funding <br />hereunder. <br />7