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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 preventative maintenance of automotive and heavy duty truck repair services for the City of Sunny Isles Beach on an as needed basis. 2.2 PRE -BID CONFERENCE: A Pre -Bid Conference for all potential Proposers is set for 10:00a.m. on 06/05/2012 in the First Floor Conference Room at the City of Sunny Isles Beach Government Center located at 18070 Collins Avenue, Sunny Isles Beach, Florida 33160. 2.3 TERM This contract will commence on the first calendar day of the month succeeding approval of the contract by the City Commission, or designee, unless otherwise stipulated in the Notice of Award letter, which is distributed by the City's Purchasing Agent; 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. 2.4 OPTIONS TO RENEW Prior to, or upon completion, of that initial term, the City shall have the option to renew this contract for an additional four (4) one year renewals. Prior to completion of each exercised contract term, the City may consider an adjustment to the price based on changes in the following pricing index: Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI -W): 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 should be submitted 60 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 adjustment request is not received from the vendor, the City will assume 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. City of Sunny Isles Beach I Request for Proposal No. 12 -05 -02