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R' Key Points Proposed Participation and Service Agreement between Cities and -County of San Bernardino Based on several months of effort by the cities and the county, the enclosed Participation and Service Agreement (PSA) has been developed. This agreement provides the cities with long term disposal, capacity. and a voice in the rates. It also provides for the resolution of system closure and postclosure liabilities for all citizens. Major Deal Points.- 25 oints:25 Years of Guaranteed Solid Waste Disposal Capacity: The county will provide 25 years of disposal at a county landfill or transfer station acceptably close to the city. • Waste Commitment: The city commits all thewasteit,controls to the county system. City agrees to be proactive to direct the waste to the county and to encourage self -haulers to use the county system. • Lowest Price Always Available to the City If the System Changes: If a county .` disposal facility is full or must close, and the next closest facility causes undue transportation costs to the city, the city and county negotiate with the goal of providing the city the, best disposal price option. If it does not work, the citycan terminate the agreements. • City Can Terminate if County Cannot Stay Competitive: If the county's net price to the city is more than 10% higher than a truly comparable alternative to the city, the city can terminate, or the county can match the deal. • Lower Fee: The city gets $3 per ton returned by the county for its use in the form of a "recycling mitigation fee." The mitigation fee is adjusted each year by the percentage change in tipping fee, if any. • City Participation in Setting ;Tipping Fee and Other System Matters: A committee of officials selected by the cities coordinate with the county on all matters of the solid waste system. • "Most Favored Nation" Clause: Any city in the county who executes a PSA is automatically entitled to any better deal received by another city in the county who subsequently signs a PSA. • Full Indemnification: The cities receive grandfathered and perpetual indemnification 117 for any and all costs associated with the disposal system. The only exception to this is if the contract terminates due to the city not directing waste to the system.