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2. COMPENSATION <br />a. City neither warrants nor guarantees any minimum or maximum compensation to <br />Consultant under this Agreement. Consultant shall be paid only for actual services <br />performed -under this Agreement at the rates and charges identified in Exhibit B. <br />The total compensation for services provided for development projects is <br />determined upon submission of payment to the City for the full cost of the services <br />from a developer. The Consultant shall perform the services and when the <br />environmental report is completed, the City will pay the consultant for the <br />completed work based upon the costs paid to the City by the developer, minus <br />administrative costs. <br />b. Payment by City shall be made within forty-five (45) days following receipt of <br />proper invoice evidencing work performed, subject to City accounting procedures. <br />Payment need not be made for work which fails to meet the standards of <br />performance set forth in the Recitals and Scope of Work, which may reasonably be <br />expected by City. <br />3. TERM <br />This Agreement shall commence on the date first written above and continue for three (3) <br />years, unless terminated earlier in accordance with Section 17, below. The term of this Agreement <br />may be extended upon a writing executed by the City Manager and the City Attorney. <br />4. PREVAILING WAGES <br />Consultant is aware of the requirements of California Labor Code Section 1720, et seq., <br />and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., <br />("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the <br />performance of other requirements on "public works" and "maintenance" projects. If the services <br />being performed are part of an applicable "public works" or "maintenance" project, as defined by <br />the Prevailing Wage Laws, and the total compensation is $1,000 or. more, Consultant agrees to <br />fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the <br />City, its elected officials, officers, employees and agents free and harmless from any claim or <br />liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. <br />5. 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 shall <br />it be construed to create an employer-employee relationship, a joint venture relationship, or to <br />allow the City to exercise discretion or control over the professional manner in which Consultant <br />performs the services which are the subject matter of this Agreement; however, the services to be <br />provided by Consultant shall be provided in a manner consistent with all applicable standards and <br />regulations governing such services. Consultant shall pay all salaries and wages, employer's social <br />Page 2 of 11 <br />25C-6 <br />