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2. COMPENSATION <br /> a. City agrees to pay, and Consultant agrees to accept as total payment for its services <br /> for City, the hourly pay rate of $ 40.00, for services rendered pursuant to this <br /> agreement, and that monthly billing pursuant to this Agreement, shall not exceed a <br /> total sum of five thousand dollars (5,000) per month. Consultant agrees and <br /> understands that no changes to this pay rate shall be made during the term of this Agreement. <br /> The total sum to be expended under this Agreement shall not exceed$20,000 during the term <br /> of this Agreement. <br /> b. Consultant agrees and understands that the not-to-exceed amount, provided above, <br /> includes reimbursement for all out-of-pocket expenses, including but not limited to, <br /> mileage, copying costs, and mail services authorized at the sole direction of the <br /> Councilmember in connection with the performance of duties under this Agreement. <br /> The City shall not make any separate payments for any of the above expenses. <br /> c. Consultant shall submit monthly invoices to City for work performed during the <br /> billing period. Payment by City shall be made within thirty (30) days following <br /> receipt of proper invoice evidencing work performed, subject to City accounting <br /> procedures. Monthly invoices shall be in substantially the form attached hereto as <br /> Exhibit"A.' <br /> 3. TERM <br /> This ,Agreement shall commence on March 2, 2026, and terminate on June 30, 2026, <br /> unless terminated earlier in accordance with Section 19,below. <br /> Q. INDEPENDENT CONTRACTOR <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, <br /> or 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 applicable <br /> standards and regulations governing such services. Consultant shall pay all salaries and wages, <br /> benefits, employer's social security taxes, unemployment insurance, and similar taxes relating <br /> to employees and shall be responsible for all applicable withholding taxes. <br /> 5. POLITICAL.CAMPAIGN ACTIVITIES <br /> a. Consultant is prohibited from the following political campaign activities <br /> while this Agreement is in place: <br /> 1) Acting as campaign treasurer/manager-or a campaign consultant for any <br /> candidate for Santa Ana City Council or Mayor; <br /> Page 2of9 <br />