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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 <br /> 2 <br />