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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 />Consultant is aware of and acknowledges the provisions of California Government Code sections <br />21220 et seq., providing that, subject to certain specified exceptions, any person retired under the <br />California Public Employees' Retirement System (PERS) may not be employed in any capacity by a <br />contracting agency such as the City unless he or she has first been reinstated from retirement pursuant to <br />the provisions of the Government Code_ Any employment of Consultant by the City contrary to the <br />provisions of California Government Code sections 21220 et seq. may result in serious financial <br />consequences for both Consultant and City. Should Consultant's services be deemed to violate these <br />provisions, the parties agree that Consultant shall reimburse PERS for payments and charges finally <br />imposed pursuant to Cal. Gov. Code §21220 (b), relating to a retired member's obligations. In such <br />instance, the City shall reimburse PERS for payments and charges imposed pursuant to Cal. Gov. Code <br />§21220 (c), relating to a public employer's obligations. <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.