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2.6 Reimbursable Expenses. Expenses not listed in Exhibit B are not chargeable to City. <br />Reimbursable expenses are included in the total amount of compensation provided under <br />this Agreement that shall not be exceeded. <br />2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes <br />incurred under this Agreement and any similar federal or state taxes. <br />2.8 Payment upon Termination. In the event that the City or Consultant terminates this <br />Agreement pursuant to Section 8, the City shall compensate the Consultant for all <br />outstanding costs and reimbursable expenses incurred for work satisfactorily completed as <br />of the date of written notice of termination. Consultant shall maintain adequate logs and <br />timesheets to verify costs incurred to that date. <br />2.9 Authorization to Perform Services. The Consultant is not authorized to perform any <br />services or incur any costs whatsoever under the terms of this Agreement until receipt of <br />authorization from the Contract Administrator. <br />Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole <br />cost and expense, provide all facilities and equipment that may be necessary to perform the services <br />required by this Agreement. City shall make available to Consultant only the facilities and equipment listed <br />in this section, and only under the terms and conditions set forth herein. <br />Section 4. INSURANCE REQUIREMENTS. Before fully executing this Agreement, Consultant, at its <br />own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance <br />listed below against claims for injuries to persons or damages to property that may arise from or in <br />connection with the performance of the work hereunder by the Consultant and its agents, representatives, <br />employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof <br />satisfactory to City of such insurance that meets the requirements of this section and under forms of <br />insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work to the City. <br />Consultant shall maintain the insurance policies required by this section throughout the term of this <br />Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not <br />allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance <br />required herein for the subcontractor(s) and provided evidence that such insurahce is in effect to City. <br />VERIFICATION OF THE REQUIRED INSURANCE SHALL BE SUBMITTED AND MADE PART OF THIS <br />AGREEMENT PRIOR TO EXECUTION. Consultant shall maintain all required insurance listed herein for <br />the duration of this Agreement. <br />4.1 Workers' Compensation. <br />4.1.1 General Requirements. Consultant shall, at its sole cost and expense, maintain <br />Statutory Workers' Compensation Insurance and Employer's Liability Insurance for <br />any and all persons employed directly or indirectly by Consultant. The Statutory <br />Workers' Compensation Insurance and Employer's Liability Insurance shall be <br />provided with limits.of not less than $1,000,000 per accident. In the alternative, <br />Consultant may rely on a self-insurance program to meet those requirements, but <br />Consulting Services Agreement between <br />City of San Leandro and Townsend Public Affairs <br />February 18, 2014 <br />Page 3of13