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4. Adjustments to Charges <br />The parties may agree to an annual adjustment of street sweeping charges (not to exceed 2%) at the <br />end of the first year of the agreement and every year thereafter, utilizing the month of December <br />statistics and supporting documentation. The two indices which will be used for determining <br />adjustments to street sweeping charges shall be the most recent December Consumer Price Index <br />(CPI) for All Urban Consumers for Los Angeles-Anaheim-Riverside CMSA, published by the United <br />States Department of Labor Bureau of Labor Statistics or any relevant successor for the Orange County <br />area and the December Produce Price Index (PPI). The adjustment formula shall be as follows: The <br />CPI shall be weighted at ninety (90%) percent and PPI shall be weighted at ten (10%) percent. <br />5. Extra Work <br />No new work of any kind shall be considered an extra unless a separate estimate is given for said <br />work and the estimate is approved by the City in writing before the work is commenced. The <br />Contractor will be required to provide before and after photographs of safety items or emergency <br />repairs. Documentation of contract compliance may be required on some occasions. <br />D. INDEPENDENT CONTRACTOR <br />Contractor shall during the entire term of this Contract, be construed to be an independent contractor <br />and not an employee of the City. This Contract is not intended nor shall it be construed to create an <br />employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion <br />or control over the manner in which Contractor performs the services required by this Contract. <br />However, the services to be provided by Contractor shall be provided in a manner consistent with all <br />applicable standards and regulations governing such services. Contractor 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 />E. INSURANCE <br />Prior to undertaking performance of work under this Contract, Contractor shall maintain and shall <br />require its subcontractors, if any, to obtain and maintain insurance as described below: <br />Commercial General Liability Insurance. Contractor shall maintain commercial general liability <br />insurance which shall include, but not be limited to protection against claims arising from bodily and <br />personal injury, including death resulting there from and damage to property, resulting from any act <br />or occurrence arising out of Contractor's operations in the performance of this Agreement, <br />including, without limitation, acts involving vehicles. The amounts of insurance shall be not less <br />than the following: single limit coverage applying to bodily and personal injury, including death <br />resulting therefrom, and property damage, in the total amount of $1,000,000 per occurrence, <br />$2,000,000 in the aggregate. Such insurance shall (a) name the City, its officers, employees, <br />agents, volunteers and representatives as additional insured(s); (b) be primary and not contributory <br />with respect to insurance or self-insurance programs maintained by the City; and (c) contain <br />standard separation of insureds provisions. A sample additional insured endorsement is attached <br />hereto as Exhibit C. <br />1. Business automobile liability insurance, or equivalent form, with a combined single limit of not less <br />than $1,000,000 per occurrence. Such insurance shall include coverage for owned, hired and non- <br />owned automobiles. <br />2. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor <br />Code, Contractor is required to be insured against liability for worker's compensation or to <br />undertake self-insurance. Prior to commencing the performance of the work under this Contract, <br />Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than <br />$1,000,000 per accident. <br />Exhibit A - Next Page <br />25H-50