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ARTICLE III <br />DELIVERY AND ACCEPTANCE OF WASTE <br />AND PROVISION OF DISPOSAL SERVICE <br />SECTION 3.1. DELIVERY OF WASTE. (A) Waste Disposal Covenant. Subject to the occurrence <br />of the Commencement Date and throughout the Term of this Agreement, the City shall exercise all legal and <br />contractual power and authority which it may possess from time to time to deliver or cause the delivery of all <br />Controllable Waste to the Disposal System in accordance herewith beginning on July 1, 1997. <br />(B) Recycled City Acceptable Waste. The parties hereto acknowledge the responsibility <br />of the City to meet the recycling and landfill diversion goals contained in the Act. Nothing in this Agreement is <br />intended or shall be interpreted to prohibit or impair the ability of the City to meet such responsibilities, or to <br />restrict the right of the residents, businesses or organizations in the City to practice source separation, recycling, <br />composting or other materials recovery activities, or to restrict the right of the City to conduct, sponsor, encourage <br />or require such activities in any form. No reduction in the amount of Controllable Waste generated in the City <br />and delivered to the Disposal System by or on behalf of the City which may result from any such source <br />separation or recycling program shall cause the City any liability hereunder (other than potential adjustment to <br />the Contract Rate to the extent provided in Article IV hereof) and shall not constitute a breach of this Agreement. <br />(C) Waste Delivered to Transfer Station. All Residue from any processing of Controllable <br />Waste by materials recovery, composting, recycling or other means, wherever performed, shall constitute <br />Controllable Waste and be subject to the Waste Disposal Covenant. Where City Acceptable Waste is processed <br />at a facility which concurrently processes other Acceptable Waste in a manner which produces commingled <br />residue which cannot be traced to a geographic source, generic residues from such facility in Tonnage equal to <br />the residues that would have been produced had City Acceptable Waste only been processed at the facility shall <br />constitute Controllable Waste and be subject to the Waste Disposal Covenant. Any City Acceptable Waste or <br />material derived or segregated therefrom which is held in storage and asserted by the possessor thereof to <br />constitute Recycled City Acceptable Waste awaiting sale or distribution to the secondary materials markets shall <br />constitute Controllable Waste if, when and to the extent that the storage or diversion thereof can be reasonably <br />deemed to constitute an evasion of the Waste Disposal Covenant rather than generally recognized, accepted and <br />prevailing practice in the Southern California materials recovery and recycling industry conducted in accordance <br />with Applicable Law. in order for the owner and/or operator of a transfer station to be entitled to deliver <br />Acceptable Waste from a Participating City to the Disposal System for the Contract Rate as provided in Article <br />IV, such owner and/or operator must execute a direct agreement with the County, acknowledging and agreeing <br />to comply with the obligation of the Participating City to cause the delivery of all Controllable Waste to the <br />Disposal System pursuant to this Agreement. In addition, the County shall be authorized to implement procedures <br />to determine if Acceptable Waste delivered by the owners or operators of Transfer Stations is entitled to utilize <br />the Disposal System for the Contract Rate. Such procedures may include requiring Transfer Stations to certify, <br />under penalty of perjury, the source of any such Acceptable Waste. If necessary, the County may require that, in <br />order to qualify for use of the Disposal System for the Contract Rate, Transfer Stations must deliver Controllable <br />Waste in loads containing only Controllable Waste, and not commingled with Acceptable Waste from entities <br />which are not Participating Cities or Participating Independent Haulers. <br />(D) Power to Obligate Waste Disposal and Comply with this Agreement. On or before July <br />1, 1997, (i) any City franchise, contract, lease, or other agreement which is lawfully in effect relating to or <br />affecting Controllable Waste shall provide, or shall have been amended to provide, that the City shall have the <br />right without material restriction on and after the Commencement Date to direct the delivery of all Controllable <br />Waste to a disposal location selected by the City (whether or not such Controllable Waste is delivered to a <br />Execution Copy 12 <br />