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not exceed $195,000.00 for the initial Agreement period covering March 1, 2015 and ending June 30, 2015, including any unpaid sums receivable by Consultant for prior period services commencing February 28, 2014, and shall not exceed $375,000.00 for the annual fiscal year beginning July 1, 2015 and ending June 30, 2016, and thereafter shall not exceed $375,000.00 for any optional annual extension of this Agreement. b. Payment by City shall be made within thirty (30) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. c. The printing and mailing unit prices quoted in Consultant's Response to City of Santa Ana Request for Proposal incorporated herein as Exhibit A may increase after the conclusion of the initial Agreement period covering March 1, 2015 and ending June 30, 2015, and at the commencement of any successive one -year terms if the costs of materials increases. Any such unit price increase will be no more than the preceding annual CPI percentage change for the State of California as measured beginning with the calendar year ending December 31, 2014. Consultant shall notify City by June 30, 2015 and at least thirty (30) days prior to any successive one -year terms if any such price increase is instated. d. City shall be responsible for payment related to United States Postal Service postage including rate increases. City will be invoiced by Consultant for postage including the amount charged for overweight and foreign mail. 3. TERM This Agreement shall cover the period of March 1, 2015 through June 30, 2016 unless terminated earlier in accordance with Section 12, below. The Term of this Agreement may be extended for one additional year upon a writing executed by the City Manager and City Attorney. 4. 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. 5. 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: 25H -7