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issued no sooner than one hundred and twenty days (120) prior to expiration of this contract, nor <br />later than the final day of the contract period. This option to extend requires the mutual agreement <br />of both parties. Refusal by either party to exercise this option to extend will cause this contract to <br />expire on the original or mutually agreed upon date. The total period of this contract, including <br />the extension, as a result of exercising this option, will not exceed a maximum combined period <br />of fifteen (15) years. The contract price, however, will be adjusted annually in a percentage <br />amount equal to the net percentage change from the previous year in the Consumer Price Index <br />(CPI) for Urban Wage Earners and Clerical Workers (all items), as published by the United States <br />Department of Labor, Bureau of Labor Statistics. All necessary CPI adjustments will be executed <br />in the form of an Authorization of Change in Services. <br />Section 5.3 Breach /Default <br />Failure by either party to this Contract to perform any of its provisions will constitute a breach of <br />Contract, in which case, either party may require corrective action within ten (10) calendar days <br />from date of receipt of written notice citing the exact nature of such breach. Failure to take <br />corrective action or failure to provide a satisfactory written reply excusing such failure within the <br />prescribed ten calendar days will constitute a default of Contract. The defaulting party will be <br />given a 20 calendar day period within which to show cause why the Contract should not be <br />terminated for default. The City may take whatever action as its interest may appear, resulting <br />from such notice. The City reserves the right to enforce the performance of the Contract in any <br />manner prescribed by law in the event of breach or default of the Contract, and may Contract with <br />another party with or without solicitation of proposals or further notification to the Contractor. At <br />a minimum, the Contractor will be required to pay any difference in the cost of securing the <br />services covered by this Contract, or compensate the City for any loss or damage 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 for default, the City, its agents <br />or representatives, will not be liable for loss of any profits anticipated to be made under this <br />Contract. <br />Section 5.4 Termination by City <br />The City reserves the right to terminate this Contract for convenience and without cause upon at <br />least thirty (30) calendar days prior written notice for any reason deemed by City to serve the <br />public interest, or resulting from any governmental law, ordinance, regulation, or court order. No <br />termination for convenience will be taken with the intention of awarding the same or a similar <br />Contract to another source. In the event of such termination the City will pay the Contractor those <br />costs directly attributable to work done or supplies obtained in preparation for completion or <br />compliance with this Contract prior to termination. Provided, however, that no costs will be paid <br />which are recoverable in the normal course of doing business in which the Contractor is engaged, <br />or costs which can be mitigated through the sale of supplies or inventories. In the event City pays <br />for the cost of supplies or materials obtained for use under this Contract, these supplies or materials <br />will become the property of City and will be delivered to the City at the place designated by the <br />Director. The City will not be liable for loss of any profits anticipated to be made under this <br />Contract. <br />12 <br />Recycling Sens ces Contract 2014 <br />