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set forth in the Recitals which may reasonably be expected by City. <br /> 3. TERM <br /> a. This Agreement shall commence on the date first written above for a one(1)year term <br /> with the option for the City to grant a one(1)year extension, exercisable by a writing <br /> by the City Manager and the City Attorney, unless terminated earlier in accordance <br /> with Section 17, below. <br /> b. Contractor is to proceed with the procurement of long-lead-time materials, specifically <br /> including, but not limited to the switchgear, upon receipt of Phase 1 — Procurement <br /> Notice to Proceed. Proof of order with expected delivery date shall be submitted to <br /> City. The construction work shall be completed within 30 calendar days from the date <br /> of the Phase 2 - Full Notice to Proceed (Construction). <br /> c. If Contractor does not complete the work within the time periods noted in subsection <br /> b above, the City will suffer damage. It is impractical and infeasible to determine the <br /> amount of damage. Therefore, Contractor shall pay to the City,as fixed and liquidated <br /> damages and not as a penalty, the sum of 500 each and every calendar day of delay. <br /> The Contractor and Contractor's Surety shall be liable for the amount. If City for any <br /> cause authorizes or contributes to a delay,suspension of work or extension of time, its <br /> duration shall be added to the time allowed for completion, but shall not be deemed a <br /> waiver nor be used to defeat any right of the City to damages for non-completion or <br /> delay. <br /> 4. PREVAILING WAGES <br /> Contractor 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 S, 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, Contractor agrees to <br /> filly comply with such Prevailing Wage Laws. Contractor 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 /> 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 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 Contractor <br /> performs the services which are the subject matter of this Agreement; however, the services to be <br /> provided by Contractor shall be provided in a manner consistent with all applicable standards and <br /> regulations governing such services. Contractor shall pay all salaries and wages, employer's social <br /> I <br />