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Contract Rate would have otherwise been increased or shall serve to reduce the Contract Rate to reflect such <br />mitigation measures, as applicable. <br />SECTION 7.3 INDEMNIFICATION. To the extent permitted by law, the County agrees that, it will <br />protect, indemnify, defend and hold harmless the City from and against all Loss-and-Expense arising from the City's <br />activity as an "arranger" (for purposes of and as such term is defined under CERCLA or comparable state statutes) <br />of municipal solid waste disposal pursuant to this Agreement. In the event the City shall determine that because of <br />conflict or any other reason that it wishes to be defended by legal counsel other than the legal counsel provided by <br />the County, the cost of providing such legal counsel shall be the City's sole responsibility. The City acknowledges <br />the County's legitimate interest in actively participating in any defense, litigation or settlement whether the County <br />or the City provides legal counsel. Any costs incurred by the County pursuant to this Section shall be considered an <br />Uncontrollable Circumstance cost and the County shall be entitled to adjust the Contract Rate as provided in <br />subsection 4.2(A) herein. The County shall not, however, be required to indemnify or defend the City from and <br />against all Loss-and-Expense arising from any willful, knowing, illegal or negligent disposal of hazardous waste <br />(other than incidental amounts of Household Hazardous Waste commonly found in municipal solid waste and <br />permitted to be disposed in Class III landfills under RCRA) which violates the County's landfill permits or <br />Applicable Law. The parties agree that this provision constitutes an indemnity under CERCLA (to the extent of the <br />specific provisions of this Section). The parties acknowledge that this subsection is not intended to and does not <br />create any obligation on the part of the County to provide any indemnification or defense to any Franchise Hauler, <br />whether franchised or not, or any Independent Hauler or Transfer Station, under any circumstances. The City <br />acknowledges the County's legitimate interest in actively participating in any defense, litigation or settlement, and <br />shall, as a condition to this indemnity, coordinate fully with the County in the defense. <br />SECTION 7.4 RELATIONSHIP OF THE PARTIES. Neither party to this Agreement shall have any <br />responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the <br />other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The <br />County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either <br />party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the <br />parties. <br />SECTION 7.5 LIMITED RECOURSE. <br />(A) To the Citv. Except in the event the City has not established or maintained a City Solid <br />Waste Enterprise Fund, no recourse shall be had to the general funds or general credit of the City for the payment of <br />any amount due the County hereunder, or the performance of any obligation incurred hereunder, including any Loss- <br />and-Expense of any nature arising from the performance or non-performance of the City's obligations hereunder. <br />The sole recourse of the County for all such amounts shall be to the funds held in any such Solid Waste Enterprise <br />Fund. All amounts held in any City Solid Waste Enterprise Fund shall be held for the uses permitted and required <br />thereby, and no such amounts shall constitute property of the County. The City shall make adequate provision in the <br />administration of any City Solid Waste Enterprise Fund for the payment of any amount or the performance of any <br />obligation which may be due hereunder. <br />(B) To the Countv. No recourse shall be had to the general funds or general credit of the <br />County for the payment of any amount due the City hereunder, or the performance of any obligation incurred <br />hereunder, including any Loss-and-Expense of any nature arising from the performance or non-performance of the <br />County's obligations hereunder. The sole recourse of the City for all such amounts shall be to the funds held in the <br />County Solid Waste Enterprise Fund in accordance with the terms of this Agreement. All amounts held in the <br />County Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts <br />shall constitute property of the City. The County shall make adequate provision in the administration of the County <br />Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due <br />hereunder. <br />SECTION 7.6 PRE-EXISTING RIGHTS AND LIABILITIES. Nothing in this Agreement is intended <br />to affect, release, waive or modify any rights, obligations or liabilities which any party hereto may have to or against <br />the other party as of the Contract Date relating to the disposal of waste in the Disposal System or any other related <br />matter. <br />27 <br />Execution Copy <br />