Trustees question auto-renewal clause in new financial system agreement; counsel advises fixed term

Trustees reviewed the subscription agreement for the district’s new financial system and questioned an automatic-renewal provision that requires a 180-day written notice to terminate.
District staff and board counsel said the new vendor agreement (for the system approved earlier this year) includes an initial term that automatically renews unless the district issues written notice at least 180 days before termination. Board counsel recommended removing the evergreen auto-renewal language or replacing it with a defined one- or two-year term, because automatic renewal places the burden on district staff to remember long notice windows amid turnover.
Trustees and staff discussed implementation timing and noted the district expects to run the new system in parallel with the incumbent (RDS) for at least a year while installation and data conversion proceed. One trustee said a vendor will likely contact the district to renew when the term ends, but counsel reiterated that an agreed fixed term and a clear out clause provide cleaner governance.
Staff said they had notified RDS that replacement work was underway and that implementation could take more than a year, which factors into any desired contract term. Counsel offered to seek a shorter, explicit term and ensure notification addresses district email/account turnover so termination notices are not missed.
The board asked staff to pursue contract language changes before final ratification and to bring a revised agreement for approval.