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NOW;, THEREFOI-~E, in consideration of the covenants ~-nd agreements <br />hereinafter contained, said parties, acting by and through their respective governing <br />boards, do hereby agree as follows: <br /> <br /> 1. This agreement is for a period of five (5) years, commencing July 1, <br /> <br />2001, with the option to automatically renew at the end of the five year period by <br />mutual consent of both parties, ending June 30, 2006. Either party may give a three <br />(3) month notice not to renew prior to a year end. <br /> <br /> 2. Purchasing of equipment, supplies, services for the City, relative to <br /> <br />this agreement, and the distribution thereof shall at the request of the City be <br />performed by the Sequoia District, which may exercise, in its own name, all the <br />powers given it by law in order to carry out the purpose of this agreement. Nothing <br />contained within this agreement shall be construed or interpreted as the City <br />assigning the Sequoia District the exclusive right to purchase the above described. <br />items for the City. <br /> <br /> 3. Sequoia District shall be entitled to reimbursement within (30) days <br /> <br />after delivery of service performed, for costs incurred by said district in the <br />performance of this agreement. If payment is not made within (30) days after <br />delivery or service performed, then a (2) two percent late payment fee will be <br />charged. Any account that is over (60) days late with payment, may be placed on <br />credit hold and services discontinued until payment is received in full. A seventeen <br />percent (17%) service charge on supplies and eight percent (8%) on capital equipment <br />will be added to each purchase for that purpose, or our warehouse catalog and <br />standard supply orders lists may reflect those service charge fees in the unit price <br />listed. <br /> <br /> <br />