Agmt 2006 Oro Loma Sanitary District (2)

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September 1, 2007. There are several reasons for the City's interest in working with the District to transfer refuse and recycling services for this area to the City including the desire for uniform recycling and clean-up programs throughout the City, and to provide a financial mechanism for residents and businesses to contribute to the cost of impacted municipal services. Presently, the City does not receive a refuse franchise fee from the L-3 area to pay for municipal services in this area including street maintenance and repair, operation of the branch library, parks, fire stations, community center, and refuse pickup from trash containers on arterial streets and at City facilities. Whereas, there is disagreement between the parties as to whether responsibility for refuse collection rests with the City or District. Whereas, the City has the legal authority pursuant to its City Charter and the provisions of Chapter 5-5 of the San Leandro Municipal Code to require payment of a franchise fee for the privilege of providing refuse collection services within the L-3 area. Whereas, the City and the District will work cooperatively and in good faith to carryout and implement the terms of this agreement to provide quality and comprehensive refuse,green waste and recycling to residents in the L-3 area. Whereas, the parties agree as follows: AGREEMENT I. The District will provide refuse, green waste and recycling services for the L-3 area until September 1, 2012, and up to September 1, 2014 if the option to extend the WMAC franchise is exercised by the District; thereafter, this agreement will continue indefinitely, unless terminated by either party upon giving written notice one (1) year prior to the effective termination date of any contract with third party contractors then in effect. The District will take no action to extend the WMAC franchise beyond September 1, 2014 (if current option to extend is exercised) without first providing written notification to City of its intent at least one (1) year prior to taking any action. II. The District retains the right to negotiate, manage and contract with third party contractors to provide for solid waste, green waste and recycling services within the L-3 area. One (1) year prior to the expiration date of a service contract with third party contractors then in effect, the City and District shall meet to discuss whether they wish to continue this agreement under the existing terms and conditions. The first meeting will take place on or about September 1, 2013. Should one party' withdraw from the agreement upon giving the required advance written notice of the intention to terminate the agreement, the parties will revert to their respective legal standing as of March 1,2006. III. Within sixty (60) days from the date of this agreement the City and District will enter into an amendment to extend the term of the existing Memorandum of 831339-1 2