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A comprehensive description of contract terms is found in the draft franchise agreement. Below are some key terms to bring to your attention. Section references to the draft franchise agreement are included in the following summary. HOLIDAY COLLECTION If the regularly scheduled collection day falls on New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, or Christmas Day, collection days for the remainder of that week shall all be postponed one collection day and residential collection is permitted on Saturday during the make-up week. See Section 4.7.1. EDUCATION AND PUBLIC AwARENESS The City recognizes that effective public education is the key to implementing effective programs and regulatory compliance. See Section 5.3. CONTAINER SPECIFICATIONS AND DISTRIBUTION Carts - Contractor will be responsible for supplying and maintaining all carts under this agreement. Carts shall be new upon initiation of services under the Agreement, and compliant with SB 1383. See Section 4.7.4.1 of the draft agreement. Bin and Cart Labels and Colors - All carts and bins will be labeled to he compliant with SB 1383. See Sections 4.7.4.1 and 4.7.4.3. Cart Distribution - Contractor shall enable customers to select cart sizes, and to exchange cart sizes upon request. See Section 4.7.4.1 of the agreement. FAITHFUL PERFORMANCE BOND The Contractor will be required to provide a performance bond totaling $2,500,000. See Section 9.5. FAITHFUL PERFORMANCE LETTER OF CREDIT The Contractor will be required to provide a letter of credit totaling $500,000. See Section 9.6. INSURANCE REQUIREMENTS The draft agreement requires the Contractor to maintain minimum insurance levels. See Section 9.4 for the minimum limits of insurance for general liability, automobile liability, and workers compensation. Draft, February 11, 2020 15 City of Santa Ana 60B-25