Agmt 2006 Oro Loma Sanitary District (2)

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Understanding (MOU) between the City and District for recycling services from an expiration date of August 31, 2007 to September 1, 2012. From the date of signing this agreement to September 1, 2012, the District will make "best efforts" to amend certain provisions of its existing franchise agreement with WMAC to make the service level compatible with the services provided by the City's solid waste, green waste and recycling services contractor, ACI. The District is currently able to provide unlimited recycling. However, it may not be possible for the District to economically achieve additional service levels that are totally compatible with the City's until the District's current franchise agreement with WMAC expires on August 31, 2012. IV. Beginning with a new service contract on or about September 2012, the District will include all City-requested provisions such as collection of used automobile oil filters, collection of food waste, collection of solid waste from street cans, public buildings and parks, etc. V. It is the City's intention to impose a franchise fee on WMAC in the approximate amount of 12% of total revenues generated from all solid waste/refuse collection billings within the L-3 area, effective September 1, 2006. i. If a franchise fee is imposed and if requested by WMAC, the District will amend its current residential, multi-family, commercial and industrial qarbaqe fee rate schedule to authorize an appropriate rate adjustment increase for the L-3 area. ii. If a rate increase is approved, the District will include in the initial customer billing (L-3 area only) a notation indicating an increase in rates based on annual CPI increases and the imposition of the franchise fee by the City. The City will provide the District with a billing insert that contains a written explanation describing the purpose of the new franchise fee and that provides a City contact telephone number for customers with questions. VI. The District agrees to remit to the City an amount up to 1/3 of all Measure D Fees collected by the District during the previous fiscal year on behalf of the L..3 area (currently, the City's share would be approximately $43,000), for payment or reimbursement of actual costs associated with co-sponsoring certain additional recycling programs or events, which, in the sole opinion of the City, are compatible with other city recycling programs and are in the best interest of the residents within the L-3 area. The District will pay vendors or release such funds to the City provided that the use of these funds is in compliance with the provisions of Measure D. VII. The District, at no additional expense to itself, will work with the City to apply for "bottles and cans funds" to be used for the cleanup of the 1-880 freeway to Lewelling Blvd. (City will administer the highway cleanup contract and list District as a co-sponsor of the program). 831339-1 3