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to provide a satisfactory written reply excusing such failure within the prescribed ten days will constitute <br />a default of Contract. The defaulting party will be given a 20 day period within which to show cause why <br />the Contract should not be tenninated for default. The City Council may take whatever action as its <br />interest may appear, resulting from such notice. The City reserves the right to enforce the performance of <br />the Contract in any manner prescribed by law in the event of breach or default of the Contract, and may <br />contract with another party with or without solicitation of proposals or further notification to the <br />Contractor. At a minimum, the Contractor will be required to pay any difference in the cost of securing <br />the services covered by this Contract, or compensate for any loss or damage to the City derived hereunder <br />should it become necessary to contract with another source because of this default, plus reasonable <br />administrative costs and attorney's fees. In the event of termination, the City, its agents or representatives, <br />will not be liable for loss of any profits anticipated to be made under this Contract. <br />Section 6.3 Termination by City <br />The City reserves the right to terminate this Contract upon a minimum of 30 days written notice for any <br />reason deemed by City Council to serve the public interest, or resulting from any governmental law, <br />ordinance, regulations, or court order. No termination for convenience will be taken with the intention of <br />awarding the same or a similar Contract to another source. In the event of such termination the City will <br />pay the Contractor those costs directly attributable to work done or supplies obtained in preparation for <br />completion or compliance with this Contract prior to termination. Provided, however, that no costs will be <br />paid which are recoverable in the normal course of doing business in which the Contractor is engaged, or <br />costs which can be mitigated through the sale of supplies or inventories. In the event City pays for the <br />cost of supplies or materials obtained for use under this C. -)rtract, these supplies or materials will become <br />the property of City and will be delivered to the City at 4 1.,� ,, ace designated by the Director. The City will <br />not be liable for loss of any profits anticipated to be made under this Contract. <br />Section 6.4 Funding Availability <br />Funds for payment for the services described in this Contract have been provided through the City budget <br />approved by City Council for the current fiscal year only. State statutes prohibit the obligation and <br />expenditure of public funds beyond the fiscal year for which a budget has been approved. However, the <br />cost of services covered by this Contract is considered a recurring requirement and is included as a <br />standard and routine expense of the City to be included in each proposed budget within the foreseeable <br />future. The City expects this to be an integral part of future budgets to be approved during the period of <br />the Contract. However, the City cannot guarantee the availability of funds, and enters into the Contract <br />only to the extent such funds are made available. If funding for continuation of the Contractor's services <br />is not available, the City may terminate this Contract by providing 30 days' notice the Contractor. The <br />fiscal year for the City extends from October 1 st of each calendar year to September 30th of the following <br />calendar year. <br />ARTICLE 7 <br />MISCELLANEOUS PROVISIONS <br />Section 7.1 Governing Law and Venue <br />This Contract is governed by the laws of the State of Texas. Exclusive venue for any dispute arising under <br />this Contract is in Hays County, Texas. <br />Section 7.2 Limitations <br />As to all acts or failures to act by either party to this Contract, any applicable statute of limitations will <br />18 <br />