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<br />3. TERM <br /> <br />This Agreement shall commence on the date first written above and terminate on <br />December 31, 2007, unless terminated earlier in accordance with Section 12, below. The term of <br />this Agreement may be extended for up to two additional one-year terms, at the option of the <br />City. <br /> <br />4. INDEPENDENT CONTRACTOR <br /> <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 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 /> <br />S. INSURANCE <br /> <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 /> <br />a. Commercial General Liability Insurance. Contractor shall maintain commercial <br />general liability insurance naming the City, its officers, agents, volunteers, and employees as <br />additional insured(s) and shall include, but not be limited to protection against claims arising <br />from bodily and personal injury, including death resulting therefrom and damage to property, <br />resulting from any act or occurrence arising out of Contractor's operations in the performance of <br />this Agreement, including, without limitation, acts involving vehicles. The amounts of insurance <br />shall be not less than the following: single limit coverage applying to bodily and personal injury, <br />including death resulting therefrom, and property damage, in the total amount of $1 ,000,000 per <br />occurrence. Contractor shall supply City with a fully executed additional insured endorsement in <br />substantially the form attached hereto as Exhibit B upon execution of this Agreement and shall <br />be approved in form by the City Attorney. <br /> <br />b. Business automobile liability insurance, or equivalent form, with a combined single <br />limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for <br />owned, hired and non-owned automobiles. <br /> <br />c. Worker's Compensation Insurance. In accordance with the provisions of Section 3300 <br />of the Labor Code, Contractor, if Contractor 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, Contractor agrees to obtain and maintain any <br />employer's liability insurance with limits not less than $1,000,000 per accident. <br /> <br />2 <br />