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<br />" <br /> <br />2. COMPENSATION <br /> <br />a. City agrees to pay, and Consultant agrees to accept as total payment for its services, <br />seventy percent (70%) of the applicable plan check fee charged by City. The total sum to be <br />expended for Plan Check services by all Consultants during the term of this Agreement, shall not <br />exceed the $500,000.00 aggregate amount approved by City Council on August 7, 2006. <br /> <br />b. Payment by City shall be made within thirty (30) days following receipt of proper <br />invoice evidencing work performed, subject to City accounting procedures. Consultant may <br />charge fifty percent (50%) of the total fee upon submission of the initial plan check report and <br />the balance upon completion of Plan Check for the project. Payment need not be made for work <br />which fails to meet the standards of performance set forth in the Recitals which may reasonably <br />be expected by City. <br /> <br />3. TERM <br /> <br />This Agreement shall commence on the date first written above and terminate when <br />allocated funds have been expended, unless terminated earlier in accordance with Section 12, <br />below. <br /> <br />4. INDEPENDENT CONTRACTOR <br /> <br />Consultant shall, during the entire term of this Agreement, be construed to be an <br />independent contractor and not an employee of the City. This Agreement is not intended nor <br />shall it be construed to create an employer-employee relationship, a joint venture relationship, or <br />to allow the City to exercise discretion or control over the professional manner in which <br />Consultant performs the services which are the subject matter of this Agreement; however, the <br />services to be provided by Consultant shall be provided in a manner consistent with all <br />applicable standards and regulations governing such services. Consultant shall pay all salaries and <br />wages, employer's social security taxes, unemployment insurance and similar taxes relating to <br />employees and shall be responsible for all applicable withholding taxes. <br /> <br />5. INSURANCE <br /> <br />Prior to undertaking performance of work under this Agreement, Consultant shall <br />maintain and shall require its subcontractors, if any, to obtain and maintain insurance as <br />described below: <br /> <br />a. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 <br />of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against <br />liability for worker's compensation or to undertake self-insurance. Prior to commencing the <br />performance of the work under this Agreement, Consultant agrees to obtain and maintain any <br />employer's liability insurance with limits not less than $1,000,000 per accident. <br /> <br />b. Professional liability (errors and omissions) insurance, with a combined single limit of <br />not less than $1,000,000 per claim, subject to $1,000,000.00 aggregate. <br /> <br />2 <br />