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<br />3. COMPENSATION <br /> <br />a. City agrees to pay, and Consultant agrees to accept as total payment for its services, <br />the rates and charges identified in Exhibit A. The total sum to be expended under this <br />Agreement shall not exceed $600,000.00 during the term of this Agreement. Funding of has <br />been approved for Phase I. If the State of California does not extend the UASI Grant Funding <br />beyond the current December 31, 2006 deadline, the services required to deliver Phase II and <br />Phase III will not be commenced until further funding sources have been identified. <br /> <br />b. Payment by City shall be made as follows: <br />. One Hundred Thousand dollars ($100,000) upon execution of this Agreement. <br />Consultant shall invoice City for the remaining $] 00,000 upon delivery of 180 <br />Hazmat pre-plan conversions as set forth in Exhibit A. <br />. Upon City's written authorization to proceed with Phase II, Consultant shall <br />invoice City for services provided pursuant to Phase II, as set forth in Exhibit A. <br />· Upon City's written authorization to proceed with Phase 111, Consultant shall <br />invoice City for services provided pursuant to Phase III, as set forth in Exhibit A. <br />· City shall pay each invoice within thirty (30) days, subject to City accounting <br />procedures. <br /> <br />c. Payment need not be made for work which fails to meet the standards of performance <br />set forth in the Recitals which may reasonably be expected by City. <br /> <br />4. TERM <br /> <br />This Agreement shall commence on the date first written above and terminate on June 30, <br />2007, unless terminated earlier in accordance with Section 13, below. The term of this <br />Agreement may be extended upon a writing executed by the Fire Chief and the City Attorney. <br /> <br />5. 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 />II <br /> <br />II <br /> <br />2 <br />