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Page 11 of 16 <br /> <br />City shall be increased by the number of Inmates/Detainees over 475 at the per <br />diem rate of $1.41 during Year 1 of the Agreement, $1.46 during Year 2 of the <br />Agreement, and $1.50 during Year 3 of the Agreement. <br /> <br />8.2 COMPENSATION. The total amount to be expended during the term of this Agreement <br />shall not exceed $10,070,246. This amount includes a base amount of $9,870,246 and a <br />contingency amount of $200,000 for additional services as directed at the City’s sole <br />discretion. Should the Facility ADP exceed 475 for a period of 30 days or more, the Parties <br />agree to meet and negotiate in good faith an increase to the total amount expended during the <br />term of this Agreement, subject to the approval of the City Council of the City of Santa Ana. <br /> <br />ARTICLE IX <br />TERM AND TERMINATION <br /> <br />9.0 TERM. The term of this AGREEMENT shall be for a period of three (3) years from October 1, <br />2022 at 12:01 a.m. through September 30, 2025 at 11:59 p.m. This Agreement shall renew upon <br />the mutual agreement of the parties for up to two (2) additional one year periods on October 1st of <br />each subsequent year with mutually agreed upon increases to the compensation, subject to approval <br />by the Santa Ana City Council, unless this Agreement is terminated or notice of termination is <br />given, as set forth in this Article. <br /> <br />9.0.1 RENEWAL. Upon each subsequent renewal beyond the initial three (3) year term of this <br />Agreement pursuant to Paragraph 9.0, the Parties may negotiate an increase in accordance <br />with CPI not to exceed 4.0% of the annual amount as defined in Paragraph 9.0.1.1. <br /> <br />9.0.1.1 CPI INCREASES. A CPI increase shall be calculated by multiplying the annual <br />amount of the previous year by a fraction, the numerator of which is the Price Index <br />for a defined month prior to the renewal date, and the denominator of which is the <br />Price Index for the same month for the year immediately preceding the Agreement <br />renewal date. However, the annual amount due for any year will not be less than <br />the annual amount for the prior year. The “Price Index” is defined as the Consumer <br />Price Index – All Urban Consumers, U.S. City Average, Medical Care Services <br />(1982-84=100), published by the Bureau of Labor Statistics of the U.S. <br />Department of Labor. <br /> <br />9.1 TERMINATION FOR LACK OF APPROPRIATIONS. This Agreement shall be subject to <br />annual appropriations by the City. <br /> <br />9.1.1 Recognizing that termination for lack of appropriations may entail substantial costs for <br />CFMG and the City, the City shall act in good faith and make every effort to provide CFMG <br />reasonable advance notice of any potential problem as it relates to funding or <br />appropriations related to this Agreement. <br /> <br />9.1.2 If future funds are not appropriated for this Agreement, and upon exhaustion of existing <br />funding, the City may terminate this Agreement without penalty or liability, by providing <br />a minimum of thirty (30) days advance written notice to CFMG. <br /> <br />9.2 TERMINATION DUE TO CFMG’s OPERATIONS. The City reserves the right to terminate <br />this Agreement immediately upon written notification to CFMG in the event that CFMG <br />discontinues or abandons its operations, is adjudged bankrupt or is reorganized under any <br />DocuSign Envelope ID: 6225CE08-C2AA-4269-9AF5-9311FF666B41