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Section 2 Special Terms and Conditions 2.1 PURPOSE OF BID: The purpose of this solicitation is to establish a contract for the purchase of motor coach transportation services in conjunction with the City's needs on an as needed when needed basis. 2.2 PRE-BID CONFERENCE (NON-MANDATORY): 2.3 TERM This contract will commence upon issuance of an notice to proceed from the City Manager or his designee; and contingent upon the completion and submittal of all required bid documents. This contract shall remain in effect for one (1) year; provided that the services rendered by the Bidder during the contract period are satisfactory and that City funding is available as appropriated on an annual basis. The price offered by the Bidder in its Bid Proposal shall be based on service for the first year. 2.4 OPTIONS TO RENEW The initial contract prices resultant from this solicitation shall prevail for a one (1) year period from the contract's initial effective date. Prior to, or upon completion, of that initial term, the City shall have the option to renew this contract for an additional four (4) year(s) period on a year-to- year basis. Prior to completion of each exercised contract term, the City may consider an adjustment to price based on changes in the following pricing index: Consumer Price Index for Urban Waae Earners and Clerical Workers (CPI-W): Selected areas. Miami-Fort Lauderdale. FL. It is the vendor's responsibility to request any pricing adjustment under this provision. For any adjustment to commence on the first day of any exercised option period, the vendor's request for adjustment shall be submitted ninety (90) calendar days prior to expiration of the then current contract term. The vendor adjustment request should not be in excess of the relevant pricing index change. If no adjustment request is received from the vendor, the City will assume that the vendor has agreed that the optional term may be exercised without pricing adjustment. Any adjustment request received after the commencement of a new option period may not be considered. The City reserves the right to negotiate lower pricing for the additional term(s) based on market research information or other factors that influence price. The City reserves the right to apply any reduction in pricing for the additional term(s) based on the downward movement of the applicable index. The City reserves the right to reject any price adjustments submitted by the vendor and/or to not exercise any otherwise available option period based on such price adjustments. Continuation of the contract beyond the initial period, and any option subsequently exercised, is a City prerogative, and not a right of the vendor. This prerogative will be exercised only when such continuation is clearly in the best interest of the City. Should the vendor decline the City's right to exercise the option period during any renewal term, the City may consider the vendor in default which decision may affect that vendor's eligibility for future contracts. PAGE 16 OF 28 BID ND. 11-05-02