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ordinance, regulations, or court order. No termination 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 termination 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 <br />cost of supplies or materials obtained for use under this Contract, these supplies or materials will become <br />the property of City and will be delivered to the City at the place designated by the Director. The City will <br />not be liable for loss of any profits anticipated to be made under this Contract. <br />Section 5.4 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 <br />standard and routine expense of the City to be included in each proposed budget within the foreseeable <br />future. The City expects this to be an integral part of future budgets to be approved during the period of <br />the Contract. However, the City cannot guarantee the availability of funds, and enters into the Contract <br />only to the extent such funds are made available. If funding for continuation of the Contractor's services <br />is not available, the City may terminate this Contract by providing 30 days notice the Contractor. The <br />fiscal year for the City extends from October 1 st of each calendar year to September 30th of the following <br />calendar year. <br />ARTICLE 6 <br />MISCELLANEOUS PROVISIONS <br />Section 6.1 Governing Law and Venue <br />This Contract is governed by the laws of the State of Texas. Exclusive venue for any dispute arising under <br />this Contract is in Hays County, Texas. <br />Section 6.2 Limitations <br />As to all acts or failures to act by either party to this Contract, any applicable statute of limitations will <br />commence to run and any alleged cause of action will be deemed to have accrued when the party <br />commencing the cause of action knew or should have known of the existence of the subject act(s) or <br />failure(s) to act. <br />Section 6.3 Gratuities <br />The City may terminate this contract if the City finds that gratuities (in the form of entertainment, gifts or <br />otherwise) were offered or given by the Contractor or any agent or representative of the Contractor, to any <br />officer or employee of the City to secure favorable treatment with respect to the awarding, amending, or <br />making of any determination with respect to the performance of this Contract. In the event this Contract is <br />terminated under this section, the City may collect, in addition to any other damages or remedies to which <br />it may be entitled by law, exemplary damages in an amount not less than three nor more than ten times <br />the value of the gratuity offered or given to any city officer or employee. <br />Section 6.4 Nondiscrimination <br />19