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2 <br />3 <br />4 <br />5 <br />6 <br />8 <br />9 <br />10 <br />11 <br />12 <br />13 <br />14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />36 <br />37 <br />38 <br />39 <br />40 <br />41 <br />42 <br />43 <br />because the Recyclables do not meet specifications. City shall make no warranty, either express or <br />implied, with respect to the Recyclables, including but not limited to any warranty of inerchantability <br />and any warranty of fitness for a particular purpose. <br />(4) Disposal Of Residue. Contractor shall dispose of, or provide for the disposal of, any and all <br />residue remaining from the processing of Recyclab(es in accordance with Applicable Law. The cost <br />thereof shall be included in fees for Processing Facility or Facilities or Composting Facility, as the <br />case may be. <br />(5) Processing Fees. City shall pay Contractor for processing of Recyclables, Bulky Waste and <br />Route-Selected Commercial MSW at City approved Processing Facilities and of Green Waste at a <br />City approved Composting Facility and the disposal of residue therefrom, as part of Contractor's <br />Service Fee. Contractor shall not, under any circumstances whatsoever, cause to be charged to City <br />any material that was collected by Contractor or by any other person without the express prior <br />written authorization of the City Representative, in his or her sole discretion. Contractor warrants <br />that all Recyclables, Bulky Waste, Commercial MSW and Green Waste which it delivers for <br />processing or composting, as the case may be, at City cost shall be collected from Customers in <br />performing Services and that breach of this warranty constitutes an Event of Default under item 5 of <br />Section 11.02. <br />Contractor shail market or provide for the marketing of all recyclables recovered from the waste <br />stream to provide for the highest level of income and maximum waste diversion. Green waste shall be <br />processed to ensure full diversion credit. Contractor shall update its marketing and diversion <br />programs to stay current with market conditions. The City Representative shall be advised to any <br />major changes in the Contractor's marketing plan. <br />c. Recovered Material Revenues and Market Risk Allocation. Effective July 1, 1997, Contractor <br />shall guarantee recycling income from the residential curbside recycling program. Contractor shall <br />guarantee a minimum of $41,000 in annual recycling income to City. This income shall substantially <br />assist in the expense of funding a code enforcement officer to support local health and safety <br />compliance. Contractor shall fund to City $3,416.67 per month effective July, 1997 through June, <br />1998. No change shall be made to the residential service rate prior to July 1, 1998. Effective July l, <br />1998 Contractor shall return 50% of the income from the curbside residential program or $43,050.00 <br />per year, whichever is greater. Adjustment shall be made to residential rate reflecting a$0.30 <br />adjustment for recycling income to City. Payment shall be made monthly to City for the term of the <br />Agreement on the monthly franchise summary. In no case shall City or residents be at any risk if <br />market conditions change. The residential rate shall only be adjusted for the guaranteed income to <br />the City. Monthly payment will be adjusted 5% per year for the first five years and then will be fixed <br />for the term of the agreement. Payments will be equal to or greater based on recycling income as <br />follows: <br />July 1, 1997 - June 1, 1998 -$41,000.00 annually <br />July 1, 1998 - June 1, 1999 -$43,050.00 annually <br />5/06/97 execution <br />