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performance of said services. City shall reimburse Auditor for Auditor's "out-of- pocket" costs directly incurred in the performance of such services. Auditor's hourly rates of auditing personnel and estimated total auditing costs are set forth in Exhibit "B", entitled "Cost Data," which exhibit is attached hereto, and by this reference incorporated herein. Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum of Forty- Three Thousand Four Hundred Twenty-Seven and No/100 Dollars ($43,427.00) for fiscal year 1997-1998, unless the performance of services or the incurring of costs in excess of said amounts have been approved in advance of performing such services or incurring such costs by City's Council, evidenced by motion duly made and carried. Fees for subsequent years will be increased based upon the Consumer Price Index for the San Francisco-Oakland-San Jose area. Compensation, and reimbursement of costs and expenses hereunder shall be payable upon monthly billing therefor by Auditor to City, which billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed. 3. ADDITIONAL SERVICES. In the event City desires the performance of additional services not otherwise included within the services described in paragraph 1, such services shall be authorized by written task order approved in advance of the performance thereof by City's Council by motion duly made and carried. Such task order shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor, the time of performance thereof, and such other matters as the parties deem appropriate for the accomplishment of such services. Except to the extent modified by a task order, all other terms and conditions of this agreement shall be deemed incorporated in each such task order. Agrnt-148 F/sh/sh/RC/Council DES:djk 04/15/98 -2- r .. r-.' .. ...- T