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July 15, 2024 Page 10 City of San Leandro/ACI Franchise Agreement Processing Facility remains below any limits established by Applicable Law including, without 338 limitation, SB 1383 and SB 54. 339 4.3 ORGANIC MATERIALS 340 A. Collection. Contractor shall provide Organic Materials Collection services as described in Exhibit B. 341 B. Transfer. Contractor may Transport Organic Materials to the Designated Transfer Facility where the 342 materials will be unloaded from Collection vehicles and loaded into large-capacity vehicles and 343 Transported to the Designated Organic Materials Processing Facility. 344 C. Processing. Contractor shall Transport and deliver all Source Separated Organic Materials placed 345 by Customers in Organic Material Containers in the City to the Designated Organic Materials 346 Processing Facility. All tipping fees and other costs associated with Transporting such Organic 347 Materials to the Designated Organic Materials Processing Facility shall be paid by Contractor. 348 Contractor shall observe and comply with all regulations in effect at the Designated Organic 349 Materials Processing Facility and cooperate with and take direction from the operator thereof with 350 respect to delivery of Organic Materials. In accordance with Exhibit J Contractor shall actively work 351 with the Designated Organic Materials Processing Facility operator throughout the Term of this 352 Agreement to ensure that contamination of the Organic Materials Collected under this Agreement 353 delivered to the Designated Processing Facility remains below any limits established by Applicable 354 Law including, without limitation, SB 1383. 355 Contractor shall accept Poly-coated paper products (e.g., paper cups and paper to-go containers) in 356 Organic Materials Containers for Collection and Composting. In the event that the Designated 357 Organic Materials Processing Facility can no longer accept such materials for Composting, or if any 358 of those materials are banned from Organic Materials Containers by Applicable Law (including the 359 final version of the SB 54 regulations), the Parties shall meet and confer to discuss alternative 360 options for processing and/or if, when, and how to change program guidelines and public education 361 messaging. 362 4.4 BULKY ITEMS, REUSABLE MATERIALS, AND TEXTILES 363 A. General. Contractor shall maintain the capacity to Collect Bulky Items from Single-Family and Multi-364 Family Customers in accordance with Exhibit B. Contractor shall maintain a scheduling system for 365 Customers to schedule their Bulky Item Collection Day. 366 Contractor shall maintain the capacity to schedule up to a maximum of thirty (30) Collection service 367 events, including Abandoned Waste Collection events, per Working Day (Monday through Friday) 368 under this Agreement (“daily limit”). The maximum number of daily events includes: (i) all on-call 369 Bulky Item and Reusable Materials Collection events provided in Exhibit B1.5 and B2.5; and, (ii) 370 Abandoned Waste as described in Section 4.7. Upon reaching the maximum number of daily events, 371 requested Bulky Item and Reusable Materials Collection service events shall be scheduled on the 372 next available regularly scheduled Working Day. 373 Contractor shall notify the City when the daily average number of events reaches thirty (30), where 374 the daily average is calculated on a weekly basis. When this threshold is met, the Parties shall meet 375 and confer to agree on a strategy for handling the volume of Bulky Item, Abandoned Waste, and 376 Docusign Envelope ID: 908A450D-1F36-4C09-B8A4-C1D639B5A05A