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ARTICLE I <br /> PURPOSE <br /> The purpose of this Agreement is to allow the Parties to establish a cooperative purchasing <br /> program between themselves, which will allow each Party to purchase goods and services under <br /> each other's competitively bid contracts pursuant to Subchapter F, Chapter 271 of the Texas Local <br /> Government Code. Furthermore, both governing bodies find that the performance of this <br /> Agreement is in the common interest of each Party and that the division of cost will fairly <br /> compensate the other for its performance under this Agreement. <br /> ARTICLE II <br /> TERM <br /> The term of this Agreement will commence on the last date of execution (the"Effective <br /> Date") and will remain in full force and effect for one year from that date. This Agreement will <br /> automatically renew for successive periods of one(1)year terms in accordance with the terms and <br /> conditions stated herein, unless sooner terminated as provided herein. <br /> ARTICLE III <br /> TERMINATION <br /> Either Party may terminate this Agreement by providing thirty (30) calendar days prior <br /> written notice to the other party. <br /> ARTICLE IV <br /> PURCHASING <br /> 4.1 Designated Purchasing Agent: The City of New Braunfels hereby makes,constitutes and <br /> appoints the City of San Marcos its true and lawful purchasing agent for the purchase of various <br /> commodities or services provided by contracts or purchase agreements, hereinafter referred to as <br /> contracts,awarded by San Marcos. Conversely,the City of San Marcos,hereby makes,constitutes <br /> and appoints New Braunfels its true and lawful purchasing agent for the purchase of various <br /> commodities or services provided by contracts awarded by New Braunfels. To utilize an existing <br /> contract, the non-contract awarding City must request authorization, in writing, from the contract <br /> awarding City. Upon receipt of such a request,the contract awarding City will seek approval from <br /> the contracted vendor. The non-awarding City agrees that the awarding City will serve as the <br /> purchasing agent for selected items, and agrees that the bidding will be conducted by the awarding <br /> City according to its usual bidding procedures. <br /> 4.2 Voluntary Participation: Participation by either Party in any cooperative purchasing <br /> activity is strictly voluntary. Nothing in this Agreement will prevent either Party from purchasing <br /> and/or accepting and awarding bids, proposals and contracts subject to this contract on its own <br /> behalf. <br /> 4.3 Payment Process:Each Party will make payments directly to the vendor under the contract <br /> made pursuant to Subchapter F,Chapter 271 of the Texas Local Government Code. The successful <br /> Page 2 <br />