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2. COMPENSATION <br />a. City agrees to pay, and Consultant agrees to accept as total payment for its services, <br />the rates and charges identified in Exhibit A. The total sum to be expended under this <br />Agreement shall not exceed $ 250,000.00 annually during the term of this Agreement. <br />b. Payment by City shall be made within thirty (30) days following receipt of proper <br />invoice evidencing work performed, subject to City accounting procedures. Payment need not <br />be made for work which fails to meet the standards of performance set forth in the Recitals <br />which may reasonably be expected by City. <br />c. The printing and mailing unit prices quoted may increase at the commencement of <br />successive one -year terms if the costs of materials increases. Any such unit price increase will <br />be no more than the annual CPI percentage change for the State of California. Consultant shall <br />notify City at least thirty (30) days prior to the new one -year term if any such price increase is <br />instated. <br />d. City shall be responsible for payment related to United States Postal Service postage <br />including rate increases. City will be invoiced by contractor for postage including the amount <br />charged for overweight and foreign mail. <br />TERM <br />This Agreement shall commence on February 28, 2014 and terminate on February 28, <br />2016 unless terminated earlier in accordance with Section 12, below. The term of this <br />Agreement may be extended for one additional year upon a writing executed by the City <br />Manager. <br />4. INDEPENDENT CONTRACTOR <br />Consultant shall, during the entire term of this Agreement, be construed to be an <br />independent contractor and not an employee of the City. This Agreement is not intended nor <br />shall it be construed to create an employer - employee relationship, a joint venture relationship, or <br />to allow the City to exercise discretion or control over the professional manner in which <br />Consultant performs the services which are the subject matter of this Agreement; however, the <br />services to be provided by Consultant shall be provided in a manner consistent with all <br />applicable standards and regulations governing such services. Consultant 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 />5. INSURANCE <br />Prior to undertaking performance of work under this Agreement, Consultant shall <br />maintain and shall require its subcontractors, if any, to obtain and maintain insurance as <br />described below: <br />25.E -4 <br />