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<br />J. In the same way, the parties desire to amend the term, compensation and scope of work of the <br />Original Maintenance Agreement, and amend and restate same as provided herein. <br />NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the <br />terms and conditions hereinafter set forth, the parties agree as follows: <br />1.SCOPE OF SERVICES <br />Contractor shall perform during the term of this Agreement, the tasks and obligations <br />including all labor, materials, tools, equipment, and incidental customary work required to fully <br />and adequately complete the services described and set forth in Exhibit A, attached hereto and <br />incorporated by reference. <br />2.COMPENSATION <br />a. City agrees to pay, and Contractor agrees to accept as total payment for its services for <br />City, the rates and charges identified in Exhibit A. The total amount to be expended <br />under this Agreement shall not exceed $595,129 during the term of this Agreement, <br />including any extension periods exercised under Section 3. This sum shall be comprised <br />of $54,600 for the first twelve (12) months with an annual increase of 1.9% for the <br />duration of the Term. <br />b. Payment by City shall be made within forty-five days (45) days following receipt of <br />proper invoice evidencing work performed, subject to City accounting procedures. <br />Within fifteen (15) business days of receipt, City shall notify Contractor in writing if <br />City has any objection to any invoice. City shall be deemed to have approved all <br />invoices for which it has not made a timely written objection. <br />3.TERM <br />This Agreement shall become effective upon the City’s acceptance of the CNG station Project via <br />a “Notice of Completion” (“Effective Date”) for a five (5) year term with the option for the City <br />to grant up to a one (1) five (5) year renewal, exercisable by a writing by the City Manager and <br />the City Attorney, unless terminated earlier in accordance with Section 16, below. <br />4. PREVAILING WAGES <br />Contractor is aware of the requirements of California Labor Code Section 1720, et seq., <br />and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., <br />(“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the <br />performance of other requirements on “public works” and “maintenance” projects. If the services <br />being performed are part of an applicable “public works” or “maintenance” project, as defined by <br />the Prevailing Wage Laws, and the total compensation is $1,000 or more, Contractor agrees to <br />fully comply with such Prevailing Wage Laws. Contractor shall defend, indemnify and hold the <br />City, its elected officials, officers, employees and agents free and harmless from any claim or <br />liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. <br />Page 2 of 10