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3. COMPENSATION <br />a. City agrees to pay, and Contractor agrees to accept as total payment for its services, <br />the rates and charges identified in Exhibit C. The total sum to be expended among all <br />contractors providing these services shall not exceed $400,000.00 annually for the initial three - <br />year (3) Term of this Agreement. <br />b. The total sum to be expended during the subsequent two -year option period among all <br />contractors providing these services shall not exceed $400,000.00 annually. Contractor shall <br />provide updated labor and equipment rates annually. <br />c. 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 />4. TERM <br />This Agreement shall have an initial three (3) year Term, commencing on September 16, <br />2014 and terminating on September 16, 2017, unless terminated earlier in accordance with <br />Section 13, below. The City Manager shall have the option to extend the Tenn of this <br />Agreement for an additional two (2) year period, on the same terms and conditions set forth <br />herein. <br />5. INDEPENDENT CONTRACTOR <br />Contractor 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 />Contractor performs the services which are the subject matter of this Agreement; however, the <br />services to be provided by Contractor shall be provided in a manner consistent with all <br />applicable standards and regulations governing such services. Contractor 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 />6. INSURANCE <br />Prior to undertaking performance of work under this Agreement, Contractor shall <br />maintain and shall require its subcontractors, if any, to obtain and maintain insurance as <br />described below: <br />a. Commercial General Liability Insurance. Contractor shall maintain commercial <br />general liability insurance which shall include, but not be limited to protection against claims <br />arising from bodily and personal injury, including death resulting therefrom and damage to <br />property, resulting from any act or occurrence arising out of Contractor's operations in the <br />performance of this Agreement, including, without limitation, acts involving vehicles. The <br />amounts of insurance shall be not less than the following: single limit coverage applying to <br />bodily and personal injury, including death resulting therefrom, and property damage, in the total <br />amount of $1,000,000 per occurrence, and in the aggregate. Such insurance shall (a) name the <br />City, its officers, employees, agents, volunteers and representatives as additional insured(s); (b) <br />25H -4 <br />