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responsibilities for operating the City Water Utility including, but not limited to: <br />employment of the personnel necessary to operate the water system; acquisition, <br />maintenance and disposition of the land, equipment and materials necessary to operate <br />the water system; establishing and collecting water rates, fees and other charges; and <br />adoption of policies, procedures and rules for the operation of the water system. <br />3. TERM OF THE AGREEMENT. The term of this Agreement shall be for one year from <br />the effective date of this Agreement. This Agreement shall be renewed each year <br />automatically for successive one year terms, unless one party gives 60 days written notice <br />to the other of the first party's intent not to renew this Agreement. <br />4. PAYMENT FOR SERVICES. Utilities shall pay tv City an annual fee for the <br />Management Services provided to Utilities. The annual fey for the initial one-year term <br />of this Agreement shall be $12,000. The City may adjust the annual fee, to reflect its <br />costs of providing the Management Services, by giving Utilities notice of the new annual <br />fee 120 days prior to the expiration of any term of this Agreement. <br />5. CONTRACT ADMINISTRATION.. <br />A. City designates its Public Works Director, or such other representative as the City <br />Administrator or City Council shall designate,. to represent City in all matters <br />connected with this Agreement on behalf cif City.... <br />B. Utilities designates its Chair, or such ether representative as the Utilities Board of <br />Commissioners shall designate, to represent Utilities in all matters connected with <br />this Agreement an behalf of Utilities. <br />C: Each party's designee shall be available `at reasonable times upon reasonable notice to <br />confer with the other party's designee. Whenever feasible, practical and not in <br />conflict with mandated duties and responsibilities, City shall endeavor to provide the <br />Management Services in accordance with the intent of Utilities. <br />D. Utilities and City shall provide the full cooperation and assistance of its officers, <br />employees, and agents to each other in the performance of this Agreement. <br />6. RELATIONSHIP OF THE PARTIES. The parties agree that nothing herein contained is <br />intended or should be construed in any manner as creating or establishing the relationship <br />of co-partners or joint employers between the parties or as constituting either party as the <br />agent, representative or employee of the other for any purposes or in any manner <br />whatsoever. <br />City shall be an independent contractor with respect to all services performed for Utilities <br />under this Agreement. City personnel who engage in the performance of this Agreement <br />shall not be considered employees of Utilities for the purposes of wages, benefits, <br />2 <br />