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<br />7. Since the execution of the "Second Amended and Restated Agreement for the Collection <br />and Handling of Solid Waste Generated and/or Accumulated in the City of Santa Ana" ("Second <br />Amended Agreement"), City and Contractor have worked together to achieve many significant <br />advancements in environmental stewardship in the City of Santa Ana. In part, due to the joint efforts of <br />the City and Contractor, the City has been able to consistently comply with the 50% diversion <br />requirements as imposed by the State of California. <br /> <br />8. Since the execution of the Second Amended Agreement, City and Contractor have <br />developed new programs to increase recycling and reduce illegal disposal of used oil <br /> <br />9. Since the execution of the Second Amended Agreement, City and Contractor have <br />developed new programs to reduce illegal dumping and litter throughout the City. <br /> <br />10. Since the execution of the Second Amended Agreement City and Contractor have jointly <br />concurred to amend the Second Amended Agreement to include the above improved environmental <br />quality measures. <br /> <br />11. The parties again desire to amend the Second Amended Agreement in its entirety to <br />incorporate the provisions of previous amendments and to extend the term of the Agreement in <br />exchange for additional payments. Said additional payments will not affect the rates paid by Santa Ana <br />customers. City and USA Waste agree that USA Waste will bear the entire cost of these payments to <br />the City of Santa Ana as consideration for extending the term of the Second Amended Agreement. <br /> <br />The City Council of the City of Santa Ana, hereby desires that CONTRACTOR be engaged to <br />provide for both the collection of Solid Wastes within the corporate limits of the City of Santa Ana and <br />the transportation of such Solid Wastes to appropriate places of processing, recycling, yard waste <br />diversion, and disposal, and to perform such services on the terms and conditions set forth in this <br />Agreement. <br /> <br />NOW, THEREFORE, for the reasons recited above, and in consideration of the respective and <br />mutual covenants and promises hereinafter contained and made, and subject to all the terms and <br />conditions hereof, the parties hereto do hereby agree as follows: <br /> <br />1. GRANT OF CONTRACT: <br /> <br />CITY hereby grants to CONTRACTOR, for the term hereinafter set forth, the contract, right <br />and privilege to collect, recycle, divert by means of compo sting, mulching, and/or transforming, <br />dispose and transport, to appropriate facilities as set forth in this Agreement, all Solid Wastes (as herein <br />defined and subject to the terms herein) generated, produced, kept and/or accumulated in the City of <br />Santa Ana, and CONTRACTOR, subject to all of the terms hereof, hereby accepts and agrees to <br />faithfully perform such contract and obligation. <br /> <br />2. TERM OF CONTRACT: <br /> <br />2 <br /> <br />25A-1 0 <br />