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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 cumulative rates and charges identified in Exhibit A. This consultant is one of five <br />consultants that the City has retained for on call municipal plan check services. The total sum <br />authorized to be expended by the City for all on call municipal plan check services between all <br />five consultants shall not exceed $500,000 during the term of this Agreement. However, this <br />Agreement does not guarantee that any set amount of the authorized $500,000 will be expended <br />on any particular consultant. <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 />3. TERM <br />This Agreement shall commence on the date first written above and terminate three (3) <br />years from said commencement date or upon the depletion of the maximum contract amount as <br />stated in Section 2 above, unless terminated earlier in accordance with provisions, below. The <br />term of this Agreement may be extended upon a writing executed by the City Manager and the <br />City Attorney. <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 />a. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 <br />of the Labor Code, Consultant, if Consultant has any employees, is required to be insured against <br />liability for worker's compensation or to undertake self-insurance. Prior to commencing the <br />