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July 2024 Page 16 City of San Leandro Post Collection requirements that may apply to expenses that will be reimbursed upon notice of the same from 577 City. 578 4.5 MATERIAL MARKETING 579 Contractor shall market Diverted Materials in accordance with this Section. 580 A. Market Arrangements. Contractor shall maintain long-term relationships with materials brokers, 581 continually monitor market conditions, and have the ability to anticipate and react to severe market 582 demand and fluctuations in quantity, composition, and pricing. Contractor shall use both domestic 583 and foreign markets to maintain continued material movement and obtain the highest and best use, 584 as described in subsection C below, for the market value. 585 B. Commodities Marketed. Contractor shall market Recovered Materials in the Commodity categories 586 and grades listed in Sections 4.3 through 4.5. If the Contractor wants to modify the Commodity 587 categories or grades during the Term of the Agreement, the Contractor shall request approval from 588 City and such approval shall be obtained before changes are implemented. 589 C. Highest and Best Use. Contractor’s marketing strategy shall promote the highest and best use of 590 materials for waste reduction, prevention, reuse, refill, repair, recovery, and Recycling as 591 established by Applicable Laws and Extended Producer Responsibility Programs. Where practical, 592 the marketing strategy should include use of local, regional, and domestic markets, in this 593 preferential order, for Diverted materials. 594 D. Responsible End Markets. Contractor shall ensure City Delivered Materials are Delivered to and 595 Recycled, Composted, and/or Processed at Responsible End Markets and shall maintain all records 596 necessary to demonstrate compliance with this Section and Applicable Law. Contractor shall provide 597 records demonstrating compliance with this Section to City in accordance with Exhibit D. 598 E. Recordkeeping. Contractor shall maintain complete and accurate marketing records, including, but 599 not limited to, Tonnage of material marketed, price, revenue received, purchaser name, physical 600 address of the final destination of marketed Commodities, and the specified end-use of marketed 601 Commodities. 602 F. Marketing of Recovered Materials. The City acknowledges that the Contractor and the 603 Subcontractors operating the Approved Processing Facilities (the “Processing Subcontractors”) are 604 required to engage in marketing Diverted materials on the open market, which involves complex 605 global commodities that Contractor and the Processing Subcontractors have little influence over, 606 and to store such recovered Commodities prior to marketing in accordance with its facility permits 607 and to assure public health and safety. Under most market conditions, including periods of severely 608 depressed and even negative value, Contractor and the Processing Subcontractors shall market such 609 Commodities to ensure that they are recycled into the productive economy. 610 In the event that Contractor or any Processing Subcontractor encounters market challenges 611 including, but not limited to, significant changes in pricing, market availability, or quality standards 612 for any materials marketed under this Agreement, Contractor shall notify the City in writing within 613 ten (10) Business Days of the nature of the market challenge and the Contractor and the Processing 614 Subcontractor’s plans for addressing the challenge. Contractor shall provide the City with updates 615 Docusign Envelope ID: DD1D0F3A-E7BC-4C69-8F25-5A59BD356B1B