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<br />EXHIBIT II <br />METHOD OF PAYMEN'T <br />2.1 For basic services under Section l. Basic Services of the ARCHITECT as <br />described in Exhibit I, CITY shall pay ARCHITECT as follows consistent with the <br />ARCHITECT's PROPOSAL attached hereto as Exhibit N and made a part hereof. <br />2.1.1 The CITY shall make total payments to the ARCHITECT in a total <br />amount not to exceed $73,000, which is based upon eleven percent <br />of a construction cost not to exceed $665,000. If the CITY <br />authorizes an increase in the PRO.fECT construction cost beyond <br />$665,000, the fee for Basic Services shall be increased <br />proportionally. The fees by phase of'service shall be as follows: <br />Design Development $7,300 <br />Contract Documents $58,400 <br />Bidding and Negotiating $2,190 <br />Construction Phase $5,110 <br />2.1.2 The ARCHITECT shall submit one invoice per month to the CITY <br />for the Section 1. Basic Services performed by the ARCHITECT <br />which will be based upon progress payments by phase. <br />2.1.3 The CITY shall review the invoice submitted by the ARCHITECT <br />within ten (10) calendar days of the CITY'S receipt of the invoice <br />submitted by the ARCHITECT. <br />2.1.4 The CITY shall notify the ARCHITECT within fifteen (15) calendar <br />days of the CITY'S receipt of the invoice of any amount(s) <br />contained in the monthly invoice that will not be paid by the CITY <br />due to: (1) inadequate documentation for the amount(s) requested; <br />(2) the amount(s) requested being outside the scope of services in <br />Section 1. Basic Services of the ARCHITECT; and (3) the <br />amount(s) requested exceed the maximum cost of the <br />ARCHITECT's services approved by the CITY. <br />