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exempt from Contractor's Franchise, including Recyclable Materials, without seeking or <br />obtaining approval of Contractor under this Agreement. <br />This grant to Contractor of an exclusive Franchise, right and privilege to Collect, <br />transport, or process and Dispose of Solid Waste shall be interpreted to be consistent <br />with all Applicable Laws, now and during the term of the Franchise, and the scope of <br />this exclusive Franchise shall be limited by current and developing Applicable Laws <br />with regard to Solid Waste handling, exclusive Franchise, control of Recyclable <br />Materials, Solid Waste flow control, and related doctrines. In the event that future <br />interpretations of current law, enactment or developing legal trends limit the ability of <br />City to lawfully provide for the scope of Franchise services as specifically set forth <br />herein, Contractor agrees that the scope of the Franchise will be limited to those services <br />and materials which may be lawfully provided for under this Agreement, and that City <br />shall not be responsible for any lost profits claimed by Contractor to arise out of further <br />limitations of the scope of the Agreement set forth herein. In such an event, it shall be <br />the responsibility of Contractor to minimize the financial impact to other services being <br />provided as much as possible. <br />2.10 City's Right to Direct Changes <br />2.10.1 General <br />City may direct Contractor to perform additional services (including new Diversion <br />programs, etc.) or modify the manner in which it performs existing services or bills for <br />services. Pilot programs and innovative services which may entail new Collection <br />methods, and different kinds of services and/ or new requirements for Waste <br />Generators are included among the kinds of changes which City may direct. Contractor <br />acknowledges that State law may increase the Diversion requirement during the term of <br />this Agreement and Contractor agrees to propose services to meet such Diversion <br />requirements. Contractor shall be entitled to an adjustment in its Contractor <br />Compensation for providing such additional or modified services, if Contractor <br />demonstrates that its cost of service would increase, as set forth in Sections 2.10.2 and <br />2.10.3. City may utilize cost components included in the Contractor's Proposal in <br />calculating equitable rate adjustments. If City and Contractor cannot agree on <br />compensation for new or additional services, then City may contract with other parties <br />for such services, which shall be considered exempt from the exclusivity provisions of <br />Section 2.2. <br />March 9, 2020 60A25114 City of Santa Ana - DRAFT <br />