Agmt 2006 Oro Loma Sanitary District

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Whereas, the District wants to continue to provide refuse and recycling services in the L3 area and will address the City concerns about the recycling program and the loss of franchise fee revenue to support municipal services. Whereas, the parties agree as follows: AGREEMENT A. The City has the legal responsibility for recycling activities, in order to comply with the provisions of AB939. B. There is disagreement between the parties as to whether responsibility for solid waste collection rests with the City or District. C. The City has the legal authority to impose a "municipal service fee" on revenues generated from solid waste, green waste and recycling within the L3 area. D. It is the intent of the City and the District to establish a long-term agreement, in which the District continues to provide refuse, green waste and recycling services to the L3 area. E. 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 and recycling to residents in the L3 area. The parties further agree as follows: I. The District will provide refuse and recycling services for the L3 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 L3 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 Understanding (MOU) between the City and District for recycling services from 810887-1 2