AGREEMENT FOR HUD GRANT MANAGEMENT SERVICES
BETWEEN MDG ASSOCIATES, INC. AND THE CITY OF SANTA ANA
THIS AGREEMENT, made and entered into this 19th day of August, 2025, by and between MDG Associates, Inc., a California corporation (hereinafter "Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City").
RECITALS
A. On May 7, 2025, the City issued a Request for Proposal No. 25-076A ("RFP"), by which it sought an experienced consultant to provide comprehensive financial, grant monitoring, administrative and technical support services for federally funded subrecipient programs through the United States Department of Housing and Urban Development ("HUD"), including the Community Development Block Grant ("CDBG"), HOME Investment Partnership Program ("HOME"), and Emergency Solutions Grant ("ESG"), during the 2025-2026 Fiscal Year.
B. Consultant submitted a responsive proposal that was selected by the City. Consultant represents that it is able and willing to provide services described in the scope of work that was included in the RFP. The RFP is referenced herein as if incorporated in full.
C. In undertaldng the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional consulting firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Consultant shall perform during the term of this Agreement, the tasks and obligations including all labor, materials, tools, equipment, and incidental customary work required to fully and adequately complete the services described and as set forth in Scope of Services - Exhibit A attached hereto and incorporated herein.
2. COMPENSATION
a. The City agrees to pay, the Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Compensation - Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $100,000 per year, which includes $300,000 for the entire term of the Agreement.
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b. Payment by City shall be made within forty-five (45) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. City and Consultant agree that all payments due and owning under this Agreement shall be made through Automated Clearing House (ACH) transfers. Consultant agrees to execute the City's standard ACH Vendor Payment Authorization and provide required documentation. Upon verification of the data provided, the City will be authorized to deposit payments directly into Consultant's account(s) with financial institutions. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals and Scope of Work, which may reasonably be expected by City.
3. TERM
This Agreement shall commence on the date first written above and terminate on June 30, 2028, unless terminated earlier in accordance with Section 15, below. The Term of this Agreement may be extended by a writing executed by the City Manager and the City Attorney.
4. INDEPENDENT CONTRACTOR
Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes.
5. OWNERSHIP OF MATERIALS
This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data").
Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk.
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6. INSURANCE
Insurance requirements are attached hereto as Exhibit C.
7. INDEMNIFICATION
Consultant agrees to defend, and shall indemnify and hold hannless the City, its officers, agents, employees, contractors, special counsel, and representatives from liability: (I) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this Agreement.
This indemnity and hold hannless agreement applies to all claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement. The. Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any action by a third party challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation, restitution, judicial or equitable relief due to personal or property rights arises by reason of the terms of, or effects arising from this Agreement. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.
8. INTELLECTUAL PROPERTY INDEMNIFICATION
Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement.
9. RECORDS
Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and
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invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement.
10. CONFIDENTIALITY
If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means.
Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; ( c) is in rightful possession of the Consultant without an obligation of confidentiality; ( d) is required to be disclosed by operation of law; or ( e) is independently developed by the Consultant without reference to information disclosed by the City.
11. CONFLICT OF INTEREST CLAUSE
a. Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with pe1formance of services specified under this Agreement.
b. No innnediate family members of either the Mayor, City Council Member, or any appointed City Official, including appointed board and connnission members, as defined under the City's Municipal Code, whose position with the City shall award or influence the award of this Agreement, or any competing contract or amendment thereof, shall be employed in any capacity by the Consultant or have any other direct or indirect financial benefit or interest in this Agreement. c. The section also prohibits the awarding of any agreement, contract, grant, or any amendment to those awards, to any former full-time employee for one-year from date of employee separation except for any CalPERS retiree as authorized by City Council resolution
d. The Consultant must comply with all conflict of interest laws, ordinances, and regulations now in effect or hereafter to be enacted during the term of this Agreement. The Consultant warrants that it is not now aware of any facts which
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conflict with the prohibitions defined above. If the Consultant hereafter becomes aware of any facts that might reasonably be expected to create a conflict of interest, it must immediately make full written disclosure of such facts to the City. Full written disclosure must include, but is not limited to, identification of all persons implicated and a complete description of all relevant circumstances. Failure to comply with the provisions of this paragraph will be a material breach of this Agreement. e. Consultant covenants that none of its directors, officers, employees, or agents shall participate in selecting or administrating any subcontract supported (in whole or in part) by City funds stemming from the Agreement where the awarding of the subcontract has any direct or indirect financial benefit or interest to any individual, as defined in subsections (b) and ( c) above.
12. NON-DISCRIMINATION
Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations.
13. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein.
14. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assigmnent, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other Consultants retained by City.
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15. TERMINATION
This Agreement may be te1minated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the fo11owing conditions:
a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate.
b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement.
16. WAIVER
No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy sha11 be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies.
17. VENUE/JURISDICTION
This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement.
18. PROFESSIONAL LICENSES
Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, pennits, approvals, waivers, and exempt-ions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement.
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19. VALIDITY
The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.
20. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by facsimile or other telegraphic communication in the manner provided in this Section, to the following persons:
To City:
Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, California 92702-1988
Facsimile (714) 647-6956
With courtesy copies to:
Community Development Agency
City of Santa Ana
20 Civic Center Plaza (M-25)
P.O. Box 1988
Santa Ana, California 92702-1988
Facsimile (714) 647-6549
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702
Facsimile (714) 647-6515
To Consultant:
MDG Associates, Inc.
I 0722 Arrow Route, Suite 822
Rancho Cucamonga, California 91730
Phone: (909) 476-9696
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Facsimile: (909) 476-6086
21. MISCELLANEOUS PROVISIONS
a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement.
[signature page to follow]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.
ATTEST:
JENNIFER HALL
City Clerk
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By:Uitcwc. (}JJ tlt,4_ � -�
ANDREA GARCIA-MILLER
Assistant City Attorney
RECOMMENDED FO
::,C
VAL:
�MICHAELLGARCIA
Executive Director
Community Development Agency
CITY OF SANT A ANA
Alvaro Nunez
City Manager
CONSULTANT
MDG Associates, Inc.
B�
RudyMufio'
President
UEI#: TCUDX2G9CMT3
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EXHIBIT A
SCOPE OF SERVICES
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CITY OF SANTA ANA
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SCOPE OF SERVICES
Consultant shall perform services as set forth below.
General Responsibilities of the Consultant
Consultant will provide select monitoring and technical support services, as well as administrative services for the City of Santa Ana's CDBG, HOME, and ESG Programs. The technical assistance and administrative services will be on-call for any forms of assistance or service related to these grant programs. This means the consultant may be required to administer or manage any form or part of the CDBG, HOME, and ESG Programs at any point-in-time on behalf of the City. These services also apply to the close-out and transfer of one-time grants for the Neighborhood Stabilization Program (NSP 1, 2 & 3).
These services also include the City's Citizen Participation Plan Review, Language Access Plan Update, Consolidated Plan and Annual Action Plans, including any public meetings, completion of the draft Consolidate Plan and Annual Action Plans, Submission of the Consolidated Plan and Annual Action Plans in IDIS, and Acceptance of Consolidated Plan and Annual Action Plans by HUD. This Scope of Services is not meant to be exhaustive relative to the administration or management of any form or part of the CDBG, HOME, and ESG Programs. Amongst the services to be provided, monitoring is highlighted below in detail as an example of the level of detail required by the Consultant:
MONITORING
Coordinate and finalize the monitoring visits directly with each sub-recipient and conclude follow up each fiscal year no later than June 1st.
1. Monitoring Letter
Send a monitoring letter to each subrecipient requesting an appointment and indicating required documentation to be reviewed at the onsite monitoring.
2. Hold an Entrance Conference
Hold an entrance conference onsite with the subrecipients' appropriate financial and/or program staff immediately before the monitoring to ensure that all subrecipient staff have a clear understanding of the purpose, scope and schedule of the monitoring.
3. Review Financial and/or Program Documents
Utilize applicable HUD Forms from CPD Monitoring Handbook for Subrecipient Oversight for CDBG, ESG, and HOME or any other forms that Consultant deems acceptable for monitoring standards. Proposed forms are to be submitted for review to the City for preapproval by the City for use.
4. Hold an Exit Conference
Meet with key representatives of the subrecipient organization to: 1) present preliminary results of the monitoring visit; 2) provide an opportunity for the subrecipient to correct any misconceptions or misunderstandings; 3) secure additional information from subrecipient staff to clarify or support their position; and 4) provide an opportunity for subrecipient staff to report on steps they are already taking to correct the matter.
City of Santa Ana RFP No. 25-076A Page 17 of 36
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CITY OF SANTA ANA
5. Draft Monitoring Letter for City's Review
Draft a monitoring letter to subrecipient for the City's review after the monitoring visit. Letter should include observations, concerns, findings, recommended actions and/or corrective actions.
6. Follow-Up
Follow-up on outstanding corrective actions and draft final monitoring close-out letter for the City's review.
MONITORING STANDARDS
All monitoring activities conducted under this engagement shall adhere to the standards and requirements set forth in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly referred to as Uniform Guidance), codified at 2 CFR Part 200.
The consultant is expected to perform monitoring in a manner consistent with the principles of accountability, transparency, and risk-based oversight. This includes, but is not limited to, the following key components:
1. Compliance with Federal Regulations: All activities must align with the compliance requirements outlined in 2 CFR 200, including Subpart D (Post Federal Award Requirements) and Subpart F (Audit Requirements), ensuring that subrecipients use federal funds for allowable and eligible purposes.
2. Internal Control Evaluation: The consultant must assess the effectiveness of each subrecipient's internal control systems in relation to financial management, procurement practices, and programmatic operations, as described in 2 CFR §200.303.
3. Risk Assessment: Monitoring shall include a documented risk-based approach to determine the appropriate level of oversight for each subrecipient, consistent with the guidance in 2 CFR §200.331(b). This includes evaluating prior performance, financial stability, and the complexity of funded activities.
4. Performance and Financial Monitoring: The consultant will verify that programmatic goals are being met and that financial reporting, cost allocations, and expenditures conform to applicable federal guidelines and the specific terms and conditions of each sub-award.
5. Corrective Actions and Technical Assistance: If deficiencies are identified, the consultant shall provide clear recommendations for corrective action and, where appropriate, offer technical assistance to ensure timely and effective remediation.
6. Documentation and Reporting: All monitoring findings, recommendations, and follow-up actions must be thoroughly documented in accordance with 2 CFR §200.334 (Retention Requirements for Records), and submitted in a timely manner to City staff for review.
These monitoring standards are designed to safeguard federal funds, support program integrity, and ensure the City of Santa Ana and its subrecipients maintain compliance with all applicable laws and regulations.
City of Santa Ana RFP No. 25-076A Page 18 of 36
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CITY OF SANT A ANA
The monitoring will include second quarter billings and performance for fiscal year 2025-2026.
City of Santa Ana RFP No. 25-076A Page 19 of 36
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EXHIBITB
COMPENSATION
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MDG Associates, Inc., is pleased to submit a cost proposal to provide the City of Santa Ana with the services outlined in the Request for Qualifications for U.S. Department of Housing and Urban Development (HUD) Grant Management Services. Our proposed pricing structure consists of a combination of fixed lump sum fees for defined tasks and hourly rates for as-needed or variable services. This blended approach is intended to provide the City with predictable costs for core activities while maintaining flexibility to address specialized or unanticipated needs. Details are provided in Table 1 below.
..... - - -111.1■1■1••· !.l•-�•· • • ·-
Table 1: Lump Sum Items
--•n • :11
Program and Financial monitoring of up to five (5) Community Development Block Grant sub- recipients providing fair housing and/or public services.
Financial monitoring of up to three (3) Emergency Solutions Grant sub-recipients. Two sub- recipients provide one activity and one subrecipient provides three activities Project monitoring of two {2) Community Development Block Grant capital improvement projects.
Financial monitoring of two (2) HOME projects
- - - --- - --- - - --,.,·Ja,1 ,1.1rw_1P1, -"'---"'1 -"1t:•••.,�•,-.]·�-•1L�!lll.!lll - Monitoring - Sub Total:
Technical support to enhance project documents and reporting documents for compliance with all applicable regulations
- -1 .... 1111, .... 111111 ·- . -
$16,150
$9,450
$6,450
$22,160
$54,210
�
To be billed
hourly*
* Due to unknown level of need and subject matter, we are proposing to bill the technical assistance (TA) on an hourly basis. If requested, MDG can provide a budget for each TA assignment requested by the City.
Note that MDGs' lump sum prices will increase at a rate of 2.5% annually should the City exercise its option to extend the contract. The hourly rates for the technical assistance component will also increase annually as provided in Table 2 below.
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•=-111111�
Table 3: Rate Schedule - 5 Year Schedule
(Hourly Rates)
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p.,fl),I• ... ;:::::-
President/Sr. Exec. Vice-President $175.00 $179.00 $184.00 Vice-President $164.00 $169.00 $173.00
Director $154.00 $158.00 $162.00
Deputy Director $139.00 $142.00 $146.00
Manager $123.00 $127.00 $130.00
Senior Associate $111.00 $114.00 $117.00
Associate $100.00 $103.00 $106.00
Senior Analyst $82.00 $84.00 $86.00
Analyst $77.00 $79.00 $81.00
Secretary $54.00 $56.00 $58.00
**Program year is defined as July 1 to June 30 of the following year.
I.ti 00 ....i,111'..--�;1 i'.lt)'_J;,..,,-1,..•
$188.00 $193.00
$178.00 $183.00
$166.00 $171.00
$150.00 $154.00
$134.00 $138.00
$120.00 $123.00
$109.00 $112.00
$89.00 $92.00
$83.00 $86.00
$60.00 $62.00
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EXHIBITC
INSURANCE REQUIREMENTS
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Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require any subcontractors to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to City. Total cost of such insurance shall be borne by Consultant.
MINIMUM SCOPE AND LIMIT OF INSURANCE
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 0lcovering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $1,000,000 per occurrence and $2,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies.
2. Automobile Liability: Insurance Services Office Form CA 00 01 covering Code 1 (any auto), with limits no less than $1,000,000 combined single limits. In the event Consultant does not maintain commercial automobile liability insurance, City will accept evidence of personal automobile insurance.
3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident, policy or employee, for bodily injury or disease. Coverage is not required if Consultant has no employees and signs request to waive such insurance.
4. Professional Liability Insurance: with limits no less than $1,000,000 per occurrence or claim, and $1,000,000 aggregate.
If Consultant maintains broader coverage and/or higher limits than the minimum requirements for each line of coverage shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City.
Other insurance Provisions
The above required insurance policies are to contain or be endorsed to contain the following provisions:
1. City, its City Council, its officers, officials, employees, agents, and volunteers are to be covered as additional insureds, under Consultant's CGL and Automobile Liability policies, with respect to any liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, equipment, and personnel furnished in connection with such work or operations.
2. Consultant's Insurance company(ies) agrees to waive ail rights of subrogation against City, its City Council, its officers, officials, employees, agents, and volunteers for losses paid under the terms of any policy which arise from work performed by Consultant under this Agreement.
3. For any claims related to this Agreement, Consultant's insurance coverage shall be primary and any insurance maintained by City, its City Council, its officers, officials, employees, agents, or volunteers shall not contribute with it.
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4. A severability of interest provision must apply for all the additional insureds, ensuring that Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability.
5. Insurance policies required herein shall provide that coverage shall not be canceled, suspended, voided, reduced in coverage or in limits, non-renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non-renewal due to non payment of premium.
6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: Executive Director, Community Development Agency, 20 Civic Center Plaza, M-25, Santa Ana, CA 92701. The name and location of project must be included in the Description of Operations section of each certificate.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the State of California with a current A.M. Best rating of no less than A:VII, unless otherwise acceptable to City.
Verification of Coverage
Consultant shall furnish City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive Consultant's obligation to provide them.
City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
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