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CONTRACT 214-331 <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 by 3.00%. <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 /> Section 5.5 Funding Availability <br /> The Contractor understands that funds for the payment for the services performed by the <br /> Contractor under this Contract have been provided through the City budget approved by City <br /> Council for the current fiscal year only. State statutes prohibit the obligation and expenditure of <br /> public funds beyond the fiscal year for which a budget has been approved. The City cannot <br /> guarantee the availability of funds, and enters into the Contract only to the extent such funds are <br /> made available. The Contractor acknowledges and agrees that it will have no recourse against the <br /> 12 <br /> Recycling Services Contract 2014 05.14.24 Redlines <br />