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2. COMPENSATION <br />a. City agrees to pay, and Contractor agrees to accept as total payment for its services <br />One Hundred and Fifty Thousand Dollars ($150,000) for each annual term. <br />Contractor shall be paid for services performed under this Agreement at the rates and <br />charges identified in Exhibit A to this Agreement. The total sum to be expended <br />corder this Agreement shall not exceed Four Hundred and Fifty Thousand Dollars <br />($450,000) for the entire term of the Agreement, including any renewals. <br />b. Payment shall be made within forty -five (45) days following receipt of proper invoice <br />evidencing work performed, subject to accounting procedures. Payment need not be <br />made for work which fails to meet the standards of performance set forth in the <br />Recitals which may be expected by the City. <br />3. TERN[ <br />This Agreement shall commence on March 21, 2017 and terminate on December 31, <br />2017, unless terminated earlier in accordance with Section 12, below. The term of this <br />Agreement may be extended for an additional two, one -year renewal options, by a writing <br />executed by the City Manager and the City Attorney. <br />4. 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 <br />and wages, employer's social security taxes, unemployment insurance and similar taxes relating <br />to employees and shall be responsible for all applicable withholding taxes. <br />5. 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 naming the City, its officers, employees, agents, <br />volunteers and representatives as additional insured(s) and shall include, but not <br />be limited to protection against claims arising from bodily and personal injury, <br />including death resulting therefrom and damage to property, resulting from any <br />act or occurrence arising out of Contractor's operations in the performance of this <br />Agreement, including, without limitation, acts involving vehicles. The amounts <br />Page 2 of 7 <br />25D -4 <br />