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<br />. <br /> <br />. <br /> <br />the average of the rates charged by all haulers operating in <br />the City on May 1, 1998 for like services in the city. <br /> <br />In determining new service rates, the program surcharge shall <br />be added to the market rates. Any program surcharges or <br />related fees reflected in the market rates shall be subtracted <br />from the market rates. <br /> <br />6. <br /> <br />LEGAL RESPONSIBILITIES <br /> <br />CONTRACTOR shall at all times comply with all applicable <br />provisions of the Santa Ana Municipal Code, now in effect or <br />hereafter enacted, as well as all other applicable County, <br />State and Federal laws and regulations; provided, however, no <br />amendment of the Code shall operate or materially impair the <br />rights and privileges of CONTRACTOR hereunder. Should any <br />State or Federal law become effective after the date of <br />execution of this agreement, which both parties agree require <br />modifications to the terms hereof, the parties agree to meet <br />and confer regarding any such modifications. <br /> <br />7. <br /> <br />PROGRAM SURCHARGE <br /> <br />(a) Effective July 1, 1998 CONTRACTOR shall pay to the CITY a <br />solid waste program surcharge equal to six (6) percent of <br />CONTRACTOR'S gross receipts as defined in section 3. <br /> <br />(b) Payments made to the CITY of said solid waste surcharges <br />shall be made to the CITY on a monthly basis and shall be due <br />and payable on or before the last calendar day of the <br />following month. Accompanying each payment will be a listing <br />of the gross receipts for that corresponding month. <br />Contractor shall, whenever requested to do so, make available <br />such records to the Executive Director at any reasonable time. <br /> <br />(c) Failure of contractor to make any of the payments provided <br />for in section (a) above on or before the dates due will <br />result in a penalty of ten (10%) percent per month to <br />CONTRACTOR. <br /> <br />8. <br /> <br />RECYCLING REQUIREMENTS <br /> <br />Effective July 1, 1998 CONTRACTOR shall transport all solid <br />waste collected by the CONTRACTOR either to a state permitted <br />Materials Recovery Facility ("MRF"), which MRF shall be <br />acceptable to the CITY, or directly to an End User. No solid <br />waste collected may be taken directly to a landfill unless <br />such material is to be reused at the landfill site. <br /> <br />3 <br />