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3. Compensation. Compensation for an individual Work Authorization shall not exceed $25,000 and rates may only be increased from the change from the November 2016 Engineering News Records Construction Cost Index for the Northern California region. a. Payment shall be made within thirty(30) days of receipt of Contractor's invoice and approval by City. b. If the prevailing wage for crafts or classifications subject to this Agreement change during the term of this Agreement, the City will accept corresponding increases in Contractor's hourly rates when sufficient documentation is received from the Contractor and verified with the Department of Industrial Relations. 4. Indemnification. Contractor shall hold harmless, defend, and indemnify the City, its officers, agents and employees ("Indemnities"), against any and all claims, costs, demands, causes of action, suits, losses, expenses,attorney's fees,or liability, arising from or in any manner related to Contractor's (includes Contractor's employees, agents, Qr��sub� contractors) negligent act or omission, whether alleged or actual, regarding the work or services performed or caused to be performed pursuant to this Agreement and any amendments thereto. Contractor shall not, however, be obligated to indemnify Indemnities from claims arising from the sole negligence or willful misconduct of Indemnities. This indemnification includes any claim that the materials or equipment provided under this Agreement, or any tool, article or process used, constitutes an infringement of any patent issued by the United States. This indemnification provision shall survive termination or cancellation of the Agreement. 5. Insurance. During the term of this Agreement,'Contractor shall maintain at its own cost and expense the following insurance coverage wi II'insurers with an A.M. Best's rating of no less than A:VII: / a. General Liability and Bodily Injuryy Insurance. Commercial general liability insurance with limits of at least $1,000,000 combined limit for bodily injury and property damage that provides that the City, its officers employees and agents are named additional insured's under the policy as evidenced by an additiinsured endorsement satisfactory to the City Attorney. The policy shall further state in writing either on the Certificate of Insurance or attached rider that this insurance will operate as primary insurance for work performed by Contractor and its subcontractors, and that no other insurance effected by City or other named insured will be called on to cover a b. Automobile Liability Insurance. Automobile liability insurance with limits not less than $1,000,000 per person/per'occurrence. c. Workers' Compensation Insurance. Workers' Compensation Insurance for all of Contractor's employees hall be in strict compliance with State laws,including a waiver of subrogation and Employer's Liability Insurance with limits of at least$1,000,000. For work or services deemed public works,by signing this Agreement,Contractor is certifying, pursuant to Section 1861 of the California Labor Code,that: "I am aware of the provisions of Sample Standard Service Agreement Page 2 of 6