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July 15, 2024 Page 12 City of San Leandro Post Collection proposed Secondary Processing Facility. In particular, the City may not approve a facility on the basis 422 of any number of factors including distance from the City, demonstrated performance of the facility, 423 regulatory and litigation history of the facility, operating track record of the facility, cost of using 424 the facility, consistency of the facility with City, County, or State policy, or any other factor relevant 425 to the City Contract Manager. Contractor shall not commence use of the proposed Secondary 426 Processing Facility without written approval from the City, which will not be unreasonably withheld. 427 Contractor shall document use of all Secondary Processing Facilities in accordance with Exhibit D.3.8 428 and D.3.9. 429 430 4.2 ORGANIC MATERIALS PROCESSING 431 A. Processing. Contractor shall Accept all Organic Materials at the Approved Organic Materials 432 Processing Facility and shall Process such material in accordance with Contractor’s Proposal as 433 detailed in Exhibit G. Contractor shall operate the Approved Organic Materials Processing Facility in 434 accordance with Applicable Law and all standards of performance described in Article 5. Contractor 435 shall meet the following minimum Processing standards at the Approved Organic Materials 436 Processing Facility: 437 1 Pre-Processing activities shall include, at a minimum, the inspection for and removal of 438 Hazardous Waste and removal of plastic bags, where possible, and when commercial food 439 scraps are delivered separately from yard waste materials to the Processing facility. 440 2 Composting shall be accomplished by the use of recognized Composting methods, which have 441 been demonstrated to be able to consistently produce a stable, mature Compost product that 442 is suitable for general purpose use, similar to the U.S. Composting Council's Class 1 rating. 443 3 Post-Composting Processing activities shall include screening to remove plastics and other 444 contaminants from the Compost Product. 445 4. Finished Compost products shall meet environmental health standards in accordance with 446 Applicable Law including, but not limited to, the physical contamination limits of 14 CCR 447 Section 17868.3.1. Contractor shall make available upon City request any sampling reports 448 and supporting documentation necessary to demonstrate compliance with this Section. 449 B. Capacity Guarantee. Contractor guarantees sufficient capacity at the Approved Organic Materials 450 Processing Facility to Process all City Delivered Materials throughout the Term of the Agreement. 451 C. Diversion. Contractor shall Process all Organic Materials in a manner that maximizes Diversion and 452 is deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a), which states 453 that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste 454 as ADC or AIC. After Processing, Contractor may Dispose of materials that do not have a higher or 455 better use as Residue or for Beneficial Reuse purposes, to the extent allowed by State and local law. 456 As required under 14 CCR Section 17867(a)(16) and 17896.44.1, Contractor shall determine and 457 report to the State quarterly the percentage of Organic Waste contained in materials Disposed. 458 In accordance with Exhibit D, Contractor shall submit a copy of such reports to the City Contract 459 Manager. 460 Contractor shall allow the City Contract Manger, or their designee, with or without prior notice, 461 Docusign Envelope ID: C78C62DE-8589-496F-8F5A-DEC38EE5853C