CIVIC COLLECTIONS, INC. 3A - 2002

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need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above and terminate on June 30, 2003, unless terminated earlier in accordance with Section 12, below. License collection services provided by Consultant to City since April 27, 2002, shall be included within the Scope of Services and Term of this Agreement. The term of this Agreement may be extended upon a writing executed by the Chief of Police and the City Attorney. 4. LIQUIDATED DAMAGES Consultant shall remit to the City dog license proceeds on the same daY as collected and by completing the proper City remittance forms. If proceeds are not remitted to the City on the same day as collected, and with the proper forms, City shall deduct a portion of Consultant's payment. The amount of the deduction shall be calculated using a two-tiered formula consisting of a day rate and a month rate. The day rate shall apply when Consultant fails to remit fees and correct forms in one day or two consecutive days. The month rate shall apply when a remittance is late by three or more consecutive days, or when Consultant submits three or more late remittances in the same month. 1) If Consultant is one day late, City shall deduct 10% of the total proceeds shown in the Dally Remittance Report total for the day consultant was late. 2) If Consultant is two consecutive days late, City shall deduct 20% of the total proceeds shown in the Daily Remittance Report total for the two days in which Consultant was late. 3) If Consultant is three or more consecutive days late, or late 3 or more times in a month, City shall deduct 10% of the total proceeds for the entire month in which Consultant was late, shown in the Monthly Remittance Report total. 5. 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 relafmg to employees and shall be responsible for all applicable withholding taxes. 6. INSURANCE 2