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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. The total sum to be expended under <br />this Agreement shall not exceed $125,000 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 />3. TERM <br />This Agreerent 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 teen 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 />performance of the work under this Agreement, Consultant agrees to obtain and maintain any <br />employer's liability insurance with limits not less than $1,000,000 per accident. <br />b. Professional liability (errors and omissions) insurance, with a combined single limit of <br />not less than $1,000,000 per claim, subject to $1,000,000.00 aggregate. <br />