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Engineer. <br />7.2 The Engineer will retain all of its records and supporting documentation relating to this <br />Agreement, and not delivered to the City, for a period of three years except in the event that the <br />Engineer goes out of business during that period, it will turn over, to the City, all of its records <br />relating to the Project for retention by the City. <br />ARTICLE 8 <br />TERM; TERMINATION OF AGREEMENT <br />8.1 The initial term of this Agreement will begin on the effective date established in the first <br />paragraph of the Agreement and will continue for a period of three years until September 1, <br />2012. This Agreement may be renewed for two additional one year terms, upon approval by the <br />City provided all terms and conditions, except for the contract period being extended or any City <br />approved increase in the Engineer's hourly rates or total not-to-exceed fee, remain unchanged <br />and in full force and effect unless this Agreement is terminated in accordance with Sections 8.2, <br />8.3 or 8.4 below. If this renewal option is exercised it will be executed in the form of an <br />Authorization in Change of Services ("Attachment B") no sooner than 120 calendar days prior to <br />the expiration of the Agreement, and not later than the final day of the initial Agreement period. <br />The City will notify the Engineer of its refusal to renew this Agreement no later than 30 calendar <br />days prior to the renewal date. The City's refusal to renew will cause the Agreement to expire <br />on the original or mutually agreed date. The total period of this contract, including all renewals <br />as a result of exercising this option may not exceed a maximum combined period of five (5) <br />years. If this Agreement is not renewed or is terminated for any reason and there is work in <br />process associated with a Work Authorization, then the terms and conditions of this Agreement <br />and the corresponding Work Authorization will remain in effect until such time that the work is <br />completed and the Engineer is paid in full. <br />8.2 Funds for the payment of this Agreement have been provided through the City budget <br />approved by City Council for the current fiscal year only. State statutes prohibit the obligation <br />and expenditure of public funds beyond the fiscal year for which a budget has been approved. <br />However, the cost of items or services covered by this Agreement is considered a recurring <br />requirement and is included as a standard and routine expense of the City to be included in each <br />proposed budget within the foreseeable future. City Council expects this to be a part of future <br />budgets to be approved during the period of this Agreement except for unanticipated needs or <br />events which may prevent such payments against this Agreement. However, the City cannot <br />guarantee the availability of funds, and enters into this Agreement only to the extent such funds <br />are made available. In the event funds are not made available in a future budget, the City may <br />terminate this Agreement. The fiscal year for the City extends from October 1 st of each calendar <br />year to September 30th of the following calendar year. <br />8.3 This Agreement may be terminated by either party upon 15 calendar days prior written <br />notice should the other party fail substantially to perform in accordance with its terms through no <br />fault of the party initiating the termination. <br />M&S Agreement 2009 <br />14