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4. COMPENSATION <br />a. City agrees to pay, and Consultant agrees to accept payment based on the hourly rates /activity <br />table set forth in Exhibit A, with a not to exceed sum of Twenty Three Thousand Dollars ($23,000) to <br />perform the six (6) tasks identified in the Scope of Work. <br />b. Payment to Consultant shall be made as follows: <br />1. $7,000 upon execution by the City of Santa Ana. <br />2. $12,000 upon delivery of the Draft Report to the City Manager. <br />3. $4,000 upon presentation of the Final Report as directed by the City. <br />c. 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 invoice shall list milestones <br />delivered and /or activities completed and the payment due therefore. Payment need not be made for work <br />which fails to meet the standards of performance set forth in the Recitals which may reasonably be <br />expected by City. <br />5. TERM <br />This Agreement shall commence on the date first written above and continue until the completion <br />of the Scope of Work within the time frame set forth in the Scope of Work, unless terminated earlier in <br />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 (PEAS) 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 />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 />2 <br />