Wheels on the Waterfront 3/31/2023

Page 4 of 7 10. Independent Contractor. A. This Agreement neither constitutes nor creates an employer-employee relationship. Grant Recipient must provide service under this Agreement as an independent contractor. Grant Recipient must comply with all federal and state laws and regulations applicable to independent contractors including, but not limited to, the requirements listed in this Section 10. The Grant Recipient agrees to indemnify and defend the City from and against any claims, valid or otherwise, made against the City because of these obligations. B. In addition to the other requirements of this Section 10, if the Grant Recipient is a sole proprietor, the Grant Recipient agrees that the Grant Recipient is not an employee or worker of the City under Chapter 51 of the Revised Code of Washington, Industrial Insurance , for the Work performed in accordance with this Agreement, by certifying to the following: (1) The Grant Recipient is free from control or direction over the performance of the Work; and (2) The Work performed is outside the usual course of business for the City or will not be performed at any place of business of the City, or Grant Recipient is responsible for the costs of the principal place of business from which the Work is performed; and (3) The Grant Recipient is customarily engaged in an independently established business of the same nature as the Work performed, or has a principal place of business for the Work performed that is eligible for a business deduction for federal income tax purposes; and (4) On the effective date of this Agreement, the Grant Recipient is responsible for filing a schedule of expenses, for the next applicable filing period, with the Internal Revenue Service from the type of service performed; and (5) By the effective date of this Agreement or within a reasonable time thereafter, the Grant Recipient has established an account with the Department of Revenue and other state agencies, where required, for the Work performed for the payment of all state taxes normally paid by employers and businesses and has registered for and received a unified business identifier number from the State of Washington; and (6) By the effective date of this Agreement, the Grant Recipient maintains a separate set of records that reflect all items of income and expenses of the Work performed. C. Any and all employees of the Grant Recipient, while engaged in the performance of any Work, shall be considered employees of only the Grant Recipient and not employees of the City. The Grant Recipient shall be solely liable for any and all claims that may or might not arise under the Worker’s Compensation Act on behalf of said employees or the Grant Recipient, while so engaged and for any and all claims made by a third party as a consequence of any negligent act or omission on the part of the Grant Recipient’s employees, while so engaged on any of the Work.