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Ms. Danell Mercado February 4, 2005 Page 3 Fees and Payments 1. Our lump sum fee for these services, excluding reimbursable expenses, shall be Forty - Eight Thousand Six Hundred Dollars ($48,600), to be paid as invoiced in conjunction with each phase of work as follows: Develop RFP (one comprehensive document) $14,500 .::P� Please see Item 3 below for a list of reimbursables. 2. Additional services performed at your request for work beyond the scope of this proposal, or for changes in previously approved work, will be billed according to the following rate schedule: Hourly Rates: Principal $155/hour Associate $110/hour Draftsman $ 75/hour Clerical $ 45/hour 3. Reimbursables, in addition to the above fee, shall consist of mileage, reproduction costs, mailing, messenger service and telephone expenses. A reimbursement budget of approximately $1,000 is recommended for this project. This figure may need to be re- negotiated if additional document sets are required by the City for bidding. 4. Payments shall be made monthly, in proportion to percent of completion of each phase of work, upon presentation of the invoice. All charges will be due and payable within 30 days. Invoices aged more than 90 days will be increased by one percent per month carrying charges, unless otherwise arranged. In the event that there is a dispute arising from the terms of this agreement, the prevailing party shall be entitled to recover reasonable attorney fees, costs and expenses included. 5. The City of Santa Ana retains the right to cancel the work of this contract at any time during the course of the project. Payment to be made in full for completed phases of work. Payment for partial completion of any phase to be on the basis of work performed to date. 6. It is agreed that PDG will perform its services in accordance with current, generally accepted design practices. It is understood that PDG makes no warranties, either express or implied, as to the findings, designs, recommendations, specifications or professional advice, and that work performed by PDG will be judged by normal standards of care.