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of written notice citing the exact nature of such breach.Failure to take corrective action or failure to provide <br /> a satisfactory written reply excusing such failure within the prescribed ten(10)business days will constitute <br /> a default of Contract. The defaulting party will be given a 20-day period within which to show cause why <br /> the Contract should not be terminated for default.The City Council may take whatever action as its interest <br /> may appear, resulting from such notice. The City reserves the right to enforce the performance of the <br /> Contract in any manner prescribed by law in the event of breach or default of the Contract,and may contract <br /> with another party with or without solicitation of proposals or further notification to the Contractor. At a <br /> minimum,the Contractor will be required to pay any difference in the cost of securing the services covered <br /> by this Contract, or compensate for any loss or damage to the City derived hereunder should it become <br /> necessary to contract with another source because of this default, plus reasonable administrative costs and <br /> attorney's fees.In the event of termination,the City, its agents or representatives,will not be liable for loss <br /> 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 written notice <br /> for any reason deemed by City Council to serve the public interest,or resulting from any governmental law, <br /> ordinance, regulations, or court order. No tennination for convenience will be taken with the intention of <br /> awarding the same or a similar Contract to another source. In the event of such tennination the City will <br /> pay the Contractor those costs directly attributable to work done or supplies obtained in preparation for <br /> completion or compliance with this Contract prior to termination. Provided, however,that no costs will be <br /> paid which are recoverable in the normal course of doing business in which the Contractor is engaged, or <br /> costs which can be mitigated through the sale of supplies or inventories. In the event City pays for the cost <br /> of supplies or materials obtained for use under this Contract, these supplies or materials will become the <br /> property of City and will be delivered to the City at the place designated by the Director. The City will not <br /> 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 budget <br /> 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 following <br /> locations: <br /> To the City: <br /> City of San Marcos <br /> Stephanie Reyes <br />