3. Compensation.
<br /> A. Annual compensation for scheduled maintenance, as described in Section 2, above, shall be as set
<br /> forth in Contractor's bid sheet, and with emergency work, total compensation each year shall not
<br /> exceed$440,000,which includes a$40,000 contingency for unforeseen circumstances and related
<br /> extra services as determined to be necessary by the Director of Operation Services or designee
<br /> ("Director"). Payment of such contingency funds is not guaranteed to Contractor unless the
<br /> Director requests such extra services.
<br /> Scheduled Emergency Total not-to-exceed compensation
<br /> Maintenance Response
<br /> Maximum
<br /> Year 1 $53,960 $346,050 $440,000
<br /> Year 2 $56,050 $359,950 ( $457,600
<br /> Year 3 $58,830 $373,170 $475,200
<br /> Year 4 $58,830 * CPI $373,170 * CPI ($58,830 * CPI) + ($373,170 * CPI) =
<br /> (optional)
<br /> Year 5 Year 4 * CPI Year 4 *CPI (Year 4 scheduled maintenance * CPI)
<br /> (optional) + (Year 4 as-needed max. *CPI) =
<br /> B. Compensation for an individual Work Authorization for emergency work shall not exceed
<br /> $25,000.
<br /> C. Payment shall be made within thirty(30)days of receipt of Contractor's invoice and approval by
<br /> City.
<br /> 4. Use of City Facility for Storage. If Contractor intends to utilize the City's Operation Services
<br /> Center to store Contractor's materials, such use shall be subject to the approval and conditions of the
<br /> Operations Superintendent.
<br /> 5. Indemnification. Contractor shall hold harmless, defend, and indemnify the City, its officers, agents
<br /> and employees("Indemnitees"),against any and all claims,costs,demands,causes of action,suits, losses,
<br /> expenses,attorney's fees,or liability,arising from or in any manner related to Contractor's(includes
<br /> Contractor's employees, agents,or subcontractors)negligent act or omission,whether alleged or actual,
<br /> regarding the work or services performed or caused to be performed pursuant to this Agreement and any
<br /> amendments thereto. Contractor shall not,however,be obligated to indemnify Indemnitees from Claims
<br /> arising from the sole negligence or willful misconduct of Indemnitees. This indemnification includes any
<br /> claim that the materials or equipment provided under this Agreement,or any tool, article or process used,
<br /> constitutes an infringement of any patent issued by the United States. This indemnification provision
<br /> shall survive termination or cancellation of the Agreement.
<br /> 6. Insurance. During the term of this Agreement,Consultant shall maintain in full force and effect, at
<br /> its own cost and expense, insurance coverages with insurers with an A.M. Best's rating of no less than
<br /> A:VII. Contractor shall have the obligation to furnish City, as additional insured,the minimum coverages
<br /> identified below, or such greater or broader coverage for City, if available in the Contractor's policies:
<br /> a. General Liability and Bodily Injury Insurance. Commercial general liability insurance with
<br /> limits of at least$2,000,000 combined limit for bodily injury and property damage that provides that the
<br /> City, its officers, employees and agents are named additional insureds under the policy as evidenced by an
<br /> additional insured endorsement satisfactory to the City Attorney. The policy shall further state in writing
<br /> either on the Certificate of Insurance or attached rider that this insurance will operate as primary
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