Agmt 2012 Neighborhood Solutions

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provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration and defense expenses. d. Wasting Policies. No policy required by this section shall include a 'wasting" policy limit (i.e. limit that is eroded by the cost of defense). e. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. f. Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from a subcontractor or vendor by.virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation. 6.6 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy requirements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach: • Obtain such insurance and deduct and retain the amount of premiums for such insurance from any sums due under the Agreement. • Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and /or • • Terminate the Agreement. 7.0 ADMINISTRATIVE REQUIREMENTS 7.1 Financial Management. a. Accounting Standards. Consultant agrees to comply with 24 CFR Part 84 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. b. Cost Principles. Consultant shall administer its program in conformance with OMB Circulars A -122, "Cost Principles for Non - Profit Organizations," or A -21, "Cost Principles for Educational Institutions," as applicable for all costs incurred whether charged on a direct or indirect basis. 7.2 Documentation and Record - Keeping a. Records to be Maintained. Consultant shall maintain all records required by the Federal regulations specific in 24 CFR Part 570.506, and that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: (1) Records providing a full description of each activity undertaken; (2) Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program set forth in 24 CFR 570.208; (3) Records required determining the eligibility of activities; (4) Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; (5) Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; (6) Financial records as required by 24 CFR Part 570.502, and Part 84; and (7) Other records necessary to document compliance with Subpart K of 24 CFR 570. - 11 - CDBG Consulting Services Agreement for Neighborhood Solutions FY12 -13