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3. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City a fee of $21,000.00, at the rates and charges identified in Exhibit B, attached hereto and incorporated by reference. A contingency shall be available, at the discretion of the City Manager, for services that are currently not anticipated but may be necessary to meet OCTA requirements. The total sum to be expended by City under this Agreement shall not exceed $30,000.00 during the term of this Agreement. b. Consultant shall submit to City a monthly itemized statement which indicates work completed and hours of service rendered by Consultant. Each statement shall describe the tasks completed during the statement period, and the percentage of each Project task completed since the commencement of the Agreement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon. 4. TERM This Agreement shall commence on the date first written above and terminate on June 30, 2014, unless terminated earlier in accordance with Section 14, below. The term of this Agreement may be extended by a writing executed by the City Manager and the Consultant. 5. INDEPENDENT CONTRACTOR Consultant 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 Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant 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. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below: a. Due to the nature of services provided, commercial general insurance is not required. b. Reserved. c. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 of the Labor Code, Contractor, if Contractor has any employees, is required to be insured against liability for worker's compensation or to undertake self - insurance. Prior to commencing the performance of the work under this Agreement, Contractor agrees to obtain and maintain any employer's liability insurance with limits not less than $1,000,000 per accident. d. Professional liability (errors and omissions) insurance, with a combined single limit of not less than $1,000,000 per claim. e. The following requirements apply to the insurance to be provided by Consultant pursuant to this section: i. Contractor shall maintain all insurance required above in full force and effect for the entire period covered by this Agreement. 251 -4