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12. Allow City to audit an assigned account at any time. 13. Maintain a valid Collection License and bonding as required by the State of California, Bureau of Collection and Investigative Services. 14. Provide suggestions on methods to improve collection rates on an ongoing basis. B. City will: 1. Use reasonable care to assign bonafide accounts receivable claims to Consultant. 2. Use its best efforts to verify any disputed amount. Warrant the accounts assigned to Consultant are first placements (no other collection agency has attempted to contact the debtor by letter service or otherwise in connection with said debt) and understands the commission rates herein are based on this representation. 2. COMPENSATION a. Consultant shall retain compensation on all monies collected on assigned accounts as set forth in Exhibit A in accordance with the rates and charges identified in Exhibit B. The total amount to be expended during the term of this Agreement shall not exceed $50,000. Consultant agrees and understands that should the value of this Agreement exceed the amount of this Agreement, including during any extension period defined below, that the Agreement may require amendment subject to approval by the City Council of the City of Santa Ana. 3. TERM This Agreement shall commence on the date first written above for a one (1) year term with the option for the City to grant up to a one (1) year renewal, exercisable by a writing by the City Manager and the City Attorney, unless terminated earlier in accordance with Section 15, below. 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent Consultant 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. Page 3 of 10 #318460vl