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DRAFT 2 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 services to residents in the L-3 area; and WHEREAS, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: AGREEMENT I. Upon execution of this Agreement, the District will provide refuse, green waste and recycling services for the L-3 area until December 31, 2037; 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 any franchise beyond December 31, 2037 without first providing written notification to City of its intent to do so 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 refuse, 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 before December 31, 2036. III. As of the effective date of the new agreement for services between the District and WMAC or other new franchisee, and through December 31, 2037, subject to the provisions in Section X, the District will implement the following provisions: • Provide residents up to two (2) 64-gallon recycling carts for bi-weekly collection. • Provide residents, upon request and at no additional cost, up to two (2) 96-gallon green waste carts for collection. • Offer commercial customers, upon request and at no additional cost, one (1) 96-gallon cart for recycling and one (1) 96-gallon cart for green waste for weekly collection. • Provide the City with quarterly report data for the L-3 area in a format consistent to the data received from ACI, including but not limited to, customer counts by container size, garbage, recycling, organics tonnage data by sector, bulky goods pick-up counts and tons, and used oil/filter collection data. • Sort through and recover materials from bulky goods collection with a minimum of 30% recovery.