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<br />been produced had City Acceptable Waste only been processed at the facility shall constitute Controllable Waste and
<br />be subject to the Waste Disposal Covenant. Any City Acceptable Waste or material derived or segregated therefrom
<br />which is held in storage and asserted by the possessor thereof to constitute Recycled City Acceptable Waste awaiting
<br />sale or distribution to the secondary materials markets shall constitute Controllable Waste if, when and to the extent
<br />that the storage or diversion thereof can be reasonably deemed to constitute an evasion of the Waste Disposal Covenant
<br />rather than generally recognized, accepted and prevailing practice in the Southern California materials recovery and
<br />recycling industry conducted in accordance with Applicable Law. In order for the owner and/or operator of a transfer
<br />station to be entitled to deliver Acceptable Waste from a Participating City to the Waste Infrastructure System for the
<br />Contract Rate as provided in Article IV, such owner and/or operator must execute a direct agreement with the County,
<br />acknowledging and agreeing to comply with the obligation of the Participating City to cause the delivery of all
<br />Controllable Waste to the Waste Infrastructure System pursuant to this Agreement. In addition, the County shall be
<br />authorized to implement procedures to determine if Acceptable Waste delivered by the owners or operators of Transfer
<br />Stations is entitled to utilize the Waste Infrastructure System for the Contract Rate. Such procedures may include
<br />requiring Transfer Stations to certify, under penalty of perjury, the source of any such Acceptable Waste. If necessary,
<br />the County may require that, in order to qualify for use of the Waste Infrastructure System for the Contract Rate,
<br />Transfer Stations must deliver Controllable Waste in loads containing only Controllable Waste, and not commingled
<br />with Acceptable Waste from entities which are not Participating Cities or Participating Independent Haulers.
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<br />(D) Power to Obligate Waste Disposal and Comply with this Agreement. On or before the
<br />Commencement Date, (i) any City franchise, contract, lease, or other agreement which is lawfully in effect relating to
<br />or affecting Controllable Waste shall provide, or shall have been amended to provide, that the City shall have the right
<br />without material restriction on and after the Commencement Date to direct the delivery of all Controllable Waste to
<br />the County Waste Infrastructure System (whether or not such Controllable Waste is delivered to a transfer station as
<br />an intermediate step prior to landfill disposal) and otherwise to comply with its obligations under this Agreement with
<br />respect to Controllable Waste and Franchise Haulers, and (ii) the City shall designate the Waste Infrastructure System
<br />as the disposal location pursuant to such franchise, contract, lease or other agreement. On and after the Commencement
<br />Date and throughout the Term of this Agreement the City (a) shall not enter into any franchise, contract, lease,
<br />agreement or obligation, issue any permit, license or approval, or adopt any ordinance, resolution or law which is
<br />materially inconsistent with the requirements of the Waste Disposal Covenant, and (b) shall maintain non-exclusive or
<br />exclusive franchises or other contractual arrangements over any City Acceptable Waste which, as of the Contract Date,
<br />is subject to non-exclusive or exclusive franchise or other contractual arrangements. The City agrees that the County
<br />shall be a third party beneficiary of the obligation of Franchise Haulers to deliver Controllable Waste to the Waste
<br />Infrastructure System, and may directly enforce such obligation through any legal means available. The City shall
<br />notify in writing each Franchise Hauler of the County’s third party beneficiary rights.
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<br />(E) Controllable Waste Flow Enforcement.
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<br />(1) The City, in cooperation with the Department, shall establish, implement, carry out and enforce a waste
<br />flow enforcement program which is sufficient to assure the delivery of all Controllable Waste to the Waste
<br />Infrastructure System pursuant to and in accordance with the Waste Disposal Covenant for Controllable Waste disposal
<br />at the times and in the manner provided herein. The waste flow enforcement program shall consist of amending City
<br />franchises, permits or authorizations with all Franchise Haulers, to the extent required by this Section and to the extent
<br />allowed by law, and shall include in addition, to the extent necessary and appropriate in the circumstances to assure
<br />compliance with the Waste Disposal Covenant, but shall not be limited to:
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<br />(i) licensing or permitting Franchise Haulers, upon the condition of compliance with the Waste Disposal
<br />Covenant,
<br />(ii) providing for and taking appropriate enforcement action under any such franchise, license, or permit,
<br />such as but not limited to the suspension, revocation and termination of collection rights and
<br />privileges, the imposition of fines or collection of damages, and the exercise of injunctive relief
<br />against non-complying Franchise Haulers and
<br />(iii) causing any Transfer Station to which Controllable Waste is delivered for processing to deliver
<br />certification, under the penalty of perjury, of the amounts of Controllable Waste received and Residue
<br />remaining from processing at such Transfer Station.
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<br />(2) The City acknowledges and agrees that in the event of a breach of the Waste Disposal Covenant by the
<br />City, the City shall pay the County an amount equal to the amount that the City would have been required to pay to
<br />the County had the Waste Disposal Covenant not been breached, which shall be calculated by: (1) subtracting the
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