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i. Contractor's invoice number ii. Santa Ana Police Department's case number c. Payment by City shall be made within sixty (60) days following receipt of proper invoice, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance for professional towing services or in accordance with the standards set forth in this agreement. d. City imposed storage fees received by the contractor shall be remitted to the City by the 15th of each month for any and all vehicles released during the prior month. A vehicle release report, which reconciles the vehicles released by the contractor, will also accompany the payment to the City. Payments shall be remitted to: Santa Ana Police Department Attention: Cpl. Saul Esquivel — Traffic Division 60 Civic Center Plaza Santa Ana, CA 92702 e. Adjustments to the Towing and Storage Fee Schedule The Police Rotational Tow Manager or his designee shall examine the towing and storage rates authorized in accordance with this agreement on an annual basis. The Program Manager may adjust the towing and storage rates, not to exceed two percent (2%) annually, based on the most recent statistics, as follows: the two indices which will be used for determining adjustments to the towing and storage fee schedule shall be the prior twelve (12) months, reporting month. December, Consumer Price Index (CPI) for All Urban Consumers for Los Angeles -Anaheim -Riverside Consolidated Metropolitan Statistical Area, published by the United States Department of Labor's Bureau of Labor Statistics or any relevant successor for the Orange County area, and the twelve (12) month December Producer Price Index for Petroleum (PPI). The adjustment formula shall be as follows: The CPI shall be weighted at ninety (90%) percent and PPI shall be weighted at ten (10%) percent. However, fee adjustments will only be made if justified and shall occur at the sole discretion of the Chief of Police based on recommendations from the Police Rotational Tow Program Manager. 3. TERM This Agreement shall commence on September 1, 2021 and continue for a three (3) year term until August 31, 2024, unless terminated earlier in accordance with Section 13, below. 4. INDEPENDENT CONTRACTOR Contractor 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 Contractor performs the services which are the subject matter of this Agreement; however, the services to be Page 2 of 10 #141898v2