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4. COMPENSATION <br />a. City agrees to pay, and Consultant agrees to accept payment based on the hourly rates set <br />forth in Exhibit A, with a not to exceed sum of $20,000 per month during the term of this Agreement. <br />b. Payment by City shall be made within thirty (30) days following receipt of proper invoice <br />evidencing work performed, subject to City accounting procedures. Each monthly invoice shall list <br />milestones delivered and/or activities completed in the previous month, and the payment due therefore. <br />Payment need not be made for work which fails to meet the standards of performance set forth in the <br />Recitals which may reasonably be expected by City. <br />5. TERM <br />This Agreement shall commence on the date first written above and terminate on June 30, 2013, <br />unless terminated earlier in accordance with Section 14, below. <br />6. INDEPENDENT CONTRACTOR <br />Consultant shall, during the entire term of this Agreement, be construed to be an independent <br />contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to <br />create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise <br />discretion or control over the professional manner in which Consultant performs the services which are <br />the subject matter of this Agreement; however, the services to be provided by Consultant shall be <br />provided in a manner consistent with all applicable standards and regulations governing such services. <br />Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and <br />similar taxes relating to employees and shall be responsible for all applicable withholding taxes. <br />7. INSURANCE <br />Prior to undertaking performance of work under this Agreement, Consultant shall maintain and <br />shall require its subcontractors, if any, to obtain and maintain insurance as described below: <br />a. Due to the nature of services provided Commercial General Liability Insurance is not required. <br />b. Business automobile liability insurance, or equivalent form, with a combined single limit of <br />not less than $2,000,000 combined single limit. Such insurance shall include coverage for owned, hired <br />and non-owned automobiles. <br />c. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the <br />Labor Code, Consultant, if Consultant has any employees, is required to be insured against liability for <br />worker's compensation or to undertake self-insurance. Prior to commencing the performance of the work <br />under this Agreement, Consultant agrees to obtain and maintain any employer's liability insurance with <br />limits not less than $1,000,000 per accident. <br />d. Professional liability (errors and omissions) insurance, with a combined single limit of not <br />less than $1,000,000 per claim. <br />e. The following requirements apply to the insurance to be provided by Consultant pursuant to <br />this section: <br />25A-4