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3. Contract Renewal. It should be noted that the City and the Contractor shall retain the <br /> right to renew the signed Contract for additional one-year periods up to, but not <br /> exceeding, four additional years. This Contract may be renewed only by mutual <br /> agreement between the parties involved. Each party retains the right to not renew the <br /> contract at the time of its annual review. If the parties agree that the terms shall continue <br /> and provided that the base compensation amount is increased annually, beginning on July <br /> 1, 2012, by the change in the April Construction Cost Index for Northern California <br /> region, the only items that shall be subject to negotiation are the following: <br /> 1. Additional items of work; and <br /> 2. New mowing and/or edging sites. <br /> 4. Method of Payment. Progress Payments —As of the twentieth day of each month, <br /> Contractor may submit for review a request for progress payment, listing the amount and <br /> value of work actually performed during the preceding month, or part thereof. Upon the <br /> Park Superintendent's review and approval, including adjustments if any, City shall make <br /> a progress payment to the Contractor. <br /> 5. Incorporation of Contract Documents. This Contract expressly incorporates all terms and <br /> conditions contained in the Turfgrass Mowing and Edging Request for Proposal. In the <br /> event there is any conflict between this Contract and the Proposal, this Contract shall <br /> control. <br /> 6. Indemnification. Contractor shall indemnify, save and hold harmless from and defend <br /> the City, its officers, agents, and employees, against any and all claims, costs, demands, <br /> causes of action, suits, losses, expense or liability arising from, or alleged to have arisen, <br /> from any acts or omissions of Contractor, its agents, sub-contractors, officials or <br /> employees, in connection with the execution of the work covered by this Contract, as it <br /> may be amended, except for the sole negligence or willful misconduct of the City. This <br /> entire indemnification provision shall survive termination or cancellation of this Contract. <br /> 7. Insurance. During the term of this Contract, Contractor shall maintain at its own cost and <br /> expense the following insurance coverage with insurers with an A.M. Best's rating of no <br /> less than A:VII: <br /> a. General Liability and Bodily Injury Insurance. A commercial general liability <br /> insurance for at least $1,000,000 combined limit for bodily injury and property damage <br /> and provide that the City, its officers, employees and agents are named additional <br /> insureds under the policy. The policy shall state in writing either on the Certificate of <br /> Insurance or attached rider thereof that this insurance will operate as primary insurance <br /> for work performed by Contractor and its subcontractors, and that no other insurance <br /> effected by City or other named insured will be called on to cover a loss. <br />