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Contract,in which case,either party may require corrective action within ten(10)business days from date <br /> of receipt of written notice citing the exact nature of such breach. Failure to take corrective action or failure <br /> to provide a satisfactory written reply excusing such failure within the prescribed ten (10) business days <br /> will constitute a default of Contract. The defaulting party will be given a 20 day period within which to <br /> show cause why the Contract should not be terminated for default. The City Council may take whatever <br /> action as its interest may appear, resulting from such notice. The City reserves the right to enforce the <br /> performance of the Contract in any manner prescribed by law in the event of breach or default of the <br /> Contract, and may contract with another party with or without solicitation of proposals or further <br /> notification to the Contractor. At a minimum,the Contractor will be required to pay any difference in the <br /> cost of securing the services covered by this Contract, or compensate for any loss or damage to the City <br /> derived hereunder should it become necessary to contract with another source because of this default,plus <br /> reasonable administrative costs and attorney's fees. In the event of termination, the City, its agents or <br /> representatives,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 calendar days prior written <br /> notice for any reason deemed by City Council to serve the public interest, or resulting from any <br /> governmental law, ordinance, regulations, or court order. No termination for convenience will be taken <br /> with the intention of awarding the same or a similar Contract to another source. In the event of such <br /> termination the City will pay the Contractor those costs directly attributable to work done or supplies <br /> obtained in preparation for completion or compliance with this Contract prior to termination. Provided, <br /> however,that no costs will be paid which are recoverable in the normal course of doing business in which <br /> the Contractor is engaged, or costs which can be mitigated through the sale of supplies or inventories. In <br /> the event City pays for the cost of supplies or materials obtained for use under this Contract,these supplies <br /> or materials will become the property of City and will be delivered to the City at the place designated by <br /> the Director. The City will 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 <br /> budget 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 standard <br /> and routine expense of the City to be included in each proposed budget within the foreseeable future. The <br /> City expects this to be an integral part of future budgets to be approved during the period of the Contract. <br /> However,the City cannot guarantee the availability of funds,and enters into the Contract only to the extent <br /> such funds are made available. If funding for continuation of the Contractor's services is not available,the <br /> City may terminate this Contract by providing 30 calendar days' notice to the Contractor. The fiscal year <br /> for the City extends from October 1st of each calendar year to September 30th of the following calendar <br /> year. <br /> ARTICLE 7 <br /> NOTICE <br /> Section 7.1 As required under this Contract notice will be delivered in writing to the parties at the <br /> following locations: <br /> To the City: <br /> City of San Marcos <br /> 18 <br />