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<br />CONTRACTUAL SERVICES <br />Page 6 of 13 <br /> <br />of final billing or acceptance of the work by the City, whichever is later, <br />subject to the provisions of Paragraph 2A hereof. <br /> <br />K. The City during any fiscal year, shall not expend money, incur any liability, <br />or enter into any contract which, by its terms, involves the expenditure of <br />money in excess of the amounts budgeted as available for expenditure <br />during such fiscal year. Any contract, verbal or written, made in violation <br />of this subsection is null and void, and no money may be paid on such <br />contract. The City shall require a statement from the comptroller of the <br />City that funds are available prior to entering into any such contract or <br />other binding commitment of funds. Nothing herein contained shall <br />prevent the making of contracts for periods exceeding one year, but any <br />contract so made shall be executory only for the value of the services to <br />be rendered or agreed to be paid in succeeding fiscal years. <br /> <br />4. INDEMNITY AND INSURANCE: <br /> <br />A. The Consultant shall indemnify, defend, and hold harmless the City and <br />all of its officers, agents and employees from any claim, loss, damage, <br />cost, charge or expense arising out of any act, error, omission or negligent <br />act by the Consultant, its agents, employees, or subcontractors during the <br />performance of the Agreement, except that neither the Consultant, its <br />agents, employees nor any of its subconsultants will be liable under this <br />paragraph for any claim, loss, damage, cost, charge or expense arising <br />out of any act, error, omission or negligent act by the City or any of its <br />officers, agents or employees during the performance of the Agreement. <br /> <br />When the City receives a notice of claim for damages that may have been <br />caused by the Consultant in the performance of services required by the <br />Consultant under this agreement, the City will immediately forward the <br />claim to the Consultant. The Consultant and the City will evaluate the <br />claim and report their findings to each other within seven working days. <br />The City and the Consultant will jointly discuss options in defending the <br />claim. After reviewing the claim, the City will determine whether to require <br />the participation of the Consultant in the defense of the claim or to require <br />that the Consultant defend the City in such claim as described in this <br />section. The City's failure to notify the Consultant of a claim within seven <br />days shall not release the Consultant from any of the requirements of this <br />section upon subsequent notification by the City to the Consultant of the <br />claim. The City and the Consultant will pay their own cost for the <br />evaluation, settlement negotiations and trial, if any. However, if only one <br />party participates in the defense of the claim at trial, that party is <br />responsible for all costs, but if the verdict determines that there is joint <br />responsibility the costs and liability for damages will be shared in the <br />same percentage as that judicially established. <br />