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B. Licensure, Certification and Registration of Personnel. All personnel and <br />contractors provided or made available by Contractor to render services hereunder will be licensed, <br />certified or registered, as appropriate, in their respective areas of expertise pursuant to applicable <br />California law. <br />C. Subcontracting and Delegation. In order to discharge its obligations hereunder, <br />Contractor will engage certain health care providers, such as on -site physicians, as independent <br />contractors rather than as employees, and may engage other persons and entities providing services <br />as subcontractors. As the relationship between Contractor and those health care professionals and <br />providers will be that of independent contractor, Contractor will not be considered or deemed to <br />be engaged in the practice of medicine or other professions practiced by these professionals, and <br />Contractor will not exercise control over the manner or means by which these independent <br />contractors perform their professional duties. Contractor shall, however, remain fully liable and <br />responsible for the services performed by its independent contractors and subcontractors. <br />4. COMPENSATION <br />The total sum to be expended for this agreement shall not exceed $4,991,486.78, This <br />amount is comprised of the totals for the Tier 1 costs for years one and two in the table below and <br />includes a contingency in the amount of $100,000 for services as directed by the City. The annual <br />sum to be expended under this Agreement for staffing, pharmaceuticals, supplies and other services <br />shall be as below and is based on a two -tiered plan based on the Jail's ADP. Pricing for years one, <br />two and three are as follows: <br />Santa Ana, CA — Annual <br />Pricing <br />Tier 1 (ADP at or <br />above 176 <br />Tier 2 (ADP at or <br />below 175) <br />Year One <br />$2,409,599.40 <br />1 $2,154,301.56 <br />Year Two <br />$2,481,887.38 <br />$2,218,930.61 <br />In the event the parties agree to extend the contractual term beyond the initial two year <br />term, compensation for any renewal period shall also be determined upon mutual agreement of the <br />parties, subject to approval by the City Council, for an amount not to exceed the Consumer Price <br />Index based on the Bureau of Labor Statistics for All Urban Areas, Los Angeles, Orange and <br />Riverside Counties for September of that year, or as otherwise agreed to by the parties. <br />In addition to the stated annual compensation, Contractor shall receive a monthly parking <br />stipend in the amount of $1,500.00 to assist with staff parking expenses due to limited public <br />parking in the immediate vicinity of the Jail. <br />The following medical services are not included in the inmate medical services listed above <br />and additional compensation shall be due and payable to Contractor in the event those services are <br />rendered by Contractor: <br />A. Pharmacy Services: Contractor shall provide routine pharmaceutical care and routine <br />prescription care for all inmates and will provide monthly invoicing to the City for <br />reimbursement purposes to include average wholesale pricing (AWP) less 14% fox <br />branded medication and AWP less 30% for generic medications, <br />