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shall be adjusted in accordance with the Consumer Price <br /> Index, San Francisco, published by the U. S. Department of <br /> Labor, based on the percentage change in the index from the <br /> first month of this Agreement to each succeeding anniversary <br /> date. Verified increases in the cost of insurance shall be <br /> permitted which exceed twenty percent (20%) increase from <br /> previous year's rate. <br /> <br /> Labor and equipment charges for extraordinary repairs as <br /> · stated in subparagraph (b) above shall be limited to a <br /> maximum increase of six percent (6%) annually. <br /> <br /> 4. Commencement. The Contractor agrees to commence work <br />provided for herein immediately upon the completion of the <br />execution of this Agreement and the delivery to him of an <br />executed copy thereof, and to continue in a due and diligent, <br />workmanlike manner and without interruption. <br /> <br /> 5. Insurance. The Contractor shall carry public liability <br />and property damage insurance for injuries, including accidental <br />death and property damage, in a combined single limit of <br />$1,000,000.00. The policy shall name the City, its officers, <br />employees, agents, Boards, Council, and Commissions as additional <br />insureds and shall stipulate that the insurance will operate as <br />primary insurance for work performed by Contractor. The <br />Contractor shall also take and maintain during the term of this <br />Agreement, Worker's Compensation Insurance covering all of his <br />employees on the project, by a company satisfactory to the City <br />and shall furnish to the City certificates issued by such <br />companies showing that all of the above-mentioned insurance has <br />been issued and is in full force and effect prior to commencing <br />work in accordance with this Agreement. The Contractor shall be <br />responsible for the insurance coverage as herein provided of all <br />employees of said Contractor. No cancellation or major change in <br />coverage, or expiration by the insurance company will be made <br />during the term of this Agreement without thirty (30) days <br />written notice to the City prior to the effective date of such <br />cancellation or change in coverage. <br /> <br /> In case any employees engage in hazardous work under this <br />Agreement and are not protected under the Worker's Compensation <br />Act, the Contractor shall provide or cause to be provided, <br />appropriate insurance for the protection of all such employees <br />not otherwise protected. The Contractor shall likewise obtain <br />public liability and property damage insurance to cover vehicles <br />used or maintained by him in the performance of said work <br />connected with this Agreement, with liability limits of not less <br />than $250,000.00 for any one person and $500,000.00 for any one <br />accident, and property damage of $50,000.00. <br /> <br /> 6. Indemnification. Contractor shall defend, indemnify, <br />and hold harmless the City, its Council, boards, commissions, <br />employees, officers, and agents from and against all claims, <br />losses, damage, injury, and liability for damages arising from <br />errors, omissions, negligent or wrongful acts of Contractor in <br />the performance of its services under this Agreement. <br /> <br /> - 3 - <br /> <br /> <br />