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<br />compliance with all of the provisions of the CITY'S SRRE, CIWMA, <br />and amendments thereto adopted hereafter, and will protect, <br />indemnify, pay, save; defend, and hold the CITY harmless from any <br />and all loss, expense, damage, fines, penalties and liability of <br />every kind and nature whatsoever by virtue of any non-compliance <br />with such CITY and statutory requirements, provided, however, that <br />CONTRACTOR shall not be responsible to the extent Solid Waste is <br />generated in the CITY and collected or disposed, or both, by other <br />than CONTRACTOR. Further, CONTRACTOR agrees to protect, defend, <br />with counsel approved by the CITY, and indemnify CITY against any <br />and all fines and/or penalties imposed by the California Integrated <br />Waste Management Board in the event that the diversion quantities <br />contained in the CITY'S SRRE, or any other requirement of CIWMA, <br />are not met. <br /> <br />15. <br /> <br />SYSTEM SAVINGS: <br /> <br />(a) SAVINGS PAYABLE TO CITY: In addition to the surcharge <br />paid pursuant to Section 10 herein, CONTRACTOR has also agreed to <br />pay to the CITY One Million Three Hundred Fifty One Thousand Five <br />Hundred Dollars ($1,351,500.00) in system savings each year during <br />the term of this Agreement. Such savings shall be deducted in <br />monthly installments of One Hundred Twelve Thousand Six Hundred and <br />Twenty Five Dollars ($112,625.00) each from payments made to <br />CONTRACTOR for curbside service pursuant to section 22 herein. <br />CONTRACTOR shall further guarantee that the CITY will receive at <br />least Thirty Thousand Dollars ($30,000.00) in federal fuel excise <br />tax savings. The estimated savings upon which this guaranteed <br />payment is based are set forth in further detail on Exhibit "B" <br />attached hereto and incorporated herein by this reference. <br /> <br />(b) POSSIBLE ADDITIONAL SAVINGS: The parties hereto have <br />agreed that any additional savings (beyond those illustrated on <br />said attached Exhibit "B") which may result from changes in the <br />diversion percentages referred to in Section 14(b) above shall be <br />split evenly between the CITY and the CONTRACTOR. Such savings <br />shall be the dollar amount equal to the difference in the <br />CONTRACTOR's per ton cost for Processing and disposal of Bin <br />Service at a MRF and the per ton cost of disposal at a Disposal <br />Site multiplied by the number of additional tons taken directly to <br />a Disposal Site. Any such additional savings shall be computed on <br />a monthly basis and such amounts shall be paid to the CITY by <br />CONTRACTOR on or before the last calendar day of each subsequent <br />month. <br /> <br />(c) FUEL SAVINGS: Fuel required for the Licensed Equipment <br />shall be purchased by the CITY and stored in a separately <br />designated tank at CONTRACTOR's facility. Such fuel shall only be <br />used to power the Licensed Equipment. The title to and ownership <br />of said fuel shall at all times remain with the CITY. CONTRACTOR <br />acknowledges that the amount at which the CITY purchases the fuel <br />for the Licensed Equipment is a reduced amount per gallon due to <br />the CITY'S exemption from federal fuel excise taxes. CONTRACTOR <br /> <br />16 <br />