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1 9. GBRA experiences excessive turnover of staff, or hires or uses inexperienced 2 personnel, or experiences other personnel-related difficulties which affect GBRA's 3 compliance with its obligations under the Contract. 4 B. GBRA shall correct the default promptly, and in no event later than 10 days after 5 receipt of the notice of default. If GBRA fails to correct the default to the satisfaction of the 6 City, the City may issue a notice of termination to GBRA. The notice shall be in writing and 7 sent at least 10 days in advance of the proposed termination date. 8 C. Upon the occurrence of any default event described in 2.01(B) above that is 9 deemed by the City to be serious in nature, the City may issue a notice of termination to 10 GBRA without allowing GBRA to correct the default. The notice shall be in writing and sent II at least 10 days in advance of the proposed termination date. 12 D. The City reserves the right to terminate the Contract if the Project is materially 13 modified and the City and GBRA cannot renegotiate the Contract to the satisfaction of both 14 parties. If the Contract is terminated for this reason, GBRA will be reimbursed for incurred 15 costs as proposed in the Cost Proposal Form. The City shall send a written notice of such 16 a termination to GBRA at least 30 days in advance of the proposed termination date. 17 E. Funds for payment of this Contract have been appropriated for the current City 18 fiscal year. The cost of services provided under this Contract is a recurring requirement, and 19 the City expects this cost to be an integral part of future budgets to be approved by the City 20 during the term of this Contract. However, the City does not guarantee the availability of 21 funding in future fiscal years, and the City may terminate this Contract in the event that 22 sufficient funding is not appropriated in a future fiscal year to make payments under this 23 Contract. The City shall send a written notice of such a termination to GBRA at least 45 24 days in advance of the proposed termination date. 25 F. The City may terminate this Contract for its convenience and without assigning 26 any reason. The City shall send a written notice of such a termination to GBRA at least 180 27 days in advance of the proposed termination date. 28 G. Upon receipt of a notice of termination, GBRA shall (1) discontinue all services 29 affected by the date set out in the notice (unle'ss the notice directs otherwise); and (2) deliver 30 or otherwise make available to the City all data, drawings, specifications, reports, estimates, 3 1 summaries, and other such information and materials as may have been accumulated by 32 GBRA in performing the Contract, whether completed or in progress. 33 H. As of the date oftermination pursuant to this section, the City may take over the 34 Project and operate it by agreement with another party or otherwise. 35 I. The City's right to terminate for a default event is not an exclusive remedy to the 36 City for the default, but is cumulative of all other rights and remedies the City may have as 37 a result of the default. If, after termination for any default event, it is determined that GBRA 38 had not defaulted, the termination shall be deemed to have been effected for the convenience 39 of the City. In such event, adjustment of the price provided for in the Contract shall be made 40 as proposed in the Cost Proposal Form. 41 42 ARTICLE 3 - CHANGE ORDERS SAN MARCOS REGIONAL SURF ACE WATER TREATMENT PLANT OPERAl10:-J CONTRACT 5-6-99 PAGE 4