CALDWELL'S AUTO BODY & TOWING (MNP AUTOMOTIVE) - 2013

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c. Payment by City shall be made within sixty (60) days following receipt of proper invoice, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance for professional towing services or in accordance with the standards set forth in this agreement. d. Adjustments to the Towing and Storage Fee Schedule The Police Tow Committee shall examine the towing and storage rates authorized in accordance with this agreement on an annual basis. The Police Tow Committee may adjust the towing and storage rates, not to exceed two percent (2%) annually, based on the most recent statistics, as follows: the two indices which will be used for determining adjustments to the towing and storage fee schedule shall be the prior twelve (12) months, reporting month December, Consumer Price Index (CPI) for All Urban Consumers for Los Angeles-Anaheim-Riverside Consolidated Metropolitan Statistical Area, published by the United States Department of Labor's Bureau of Labor Statistics or any relevant successor for the Orange County area, and the twelve (12) month December Producer Price Index for Petroleum (PPI). The adjustment formula shall be as follows: The CPI shall be weighted at ninety (90%) percent and PPI shall be weighted at ten (10%) percent. However, fee adjustments will only be made if justified and shall occur at the sole discretion of the Chief of Police based on recommendations from the Police Tow Committee. 3. TERM This Agreement shall commence on April 1, 2013 and continue through March 31, 2014, unless terminated earlier in accordance with Section 12, below. The term of this Agreement may be extended up to four (4) additional one-year periods, at the option of the Chief of Police. 4. INDEPENDENT CONTRACTOR Contractor shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Contractor performs the services which are the subject matter of this Agreement; however, the services to be provided by Contractor shall be provided in a manner consistent with all applicable standards and regulations governing such services. Contractor shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. INSURANCE Prior to undertaking performance of work under this Contract, Contractor shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Commercial General Liability Insurance - the Contractor shall maintain commercial general liability insurance which shall include, but not be limited to protection against claims arising from bodily and personal injury, including death resulting there from and damage to property, resulting from any act or occurrence arising out of Contractor's operations in the performance of this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance shall be not less than the following: single limit coverage applying to bodily and personal injury, including death resulting there from, and property damage, in the total amount of $1,000,000 per occurrence, $2,000,000 in the aggregate.