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3 . The City Council of CITY further declares its intention <br /> of maintaining reasonable rates for collection and disposal of <br /> solid waste refuse for residential units. <br /> 4 . The parties hereto previously entered into that certain <br /> agreement dated December 27 , 1982 , entitled "Agreement for Collec- <br /> tion and Transportation of Solid Waste Refuse Produced or Accumu- <br /> lated in the City of Santa Ana, " ( "said agreement" ) and have <br /> generally been satisfied with performance under said agreement. <br /> 5 . The City Council of the City of Santa Ana, having <br /> determined that CONTRACTOR by demonstrated experience , reputa- <br /> tion and capacity is qualified to continue to provide for the <br /> collection of refuse within the corporate limits of the City of <br /> Santa Ana and to transport such refuse to places of disposal , <br /> desires that CONTRACTOR be engaged to perform such services <br /> on the basis set forth in this Agreement. <br /> 6 . The parties hereto desire to replace said agreement by <br /> this new agreement effective January 1 , 1987 . <br /> NOW, THEREFORE , in consideration of the respective <br /> and mutual covenants and promises hereinafter contained and <br /> made , and subject to all the terms and conditions hereof, the <br /> parties hereto do hereby agree as follows : <br /> 1 . Grant of Contract : <br /> CITY hereby grants to CONTRACTOR, for the term herein- <br /> after set forth, the contract, right and privilege to collect and <br /> transport to any legally authorized disposal site or sites, all <br /> refuse (as herein defined ) produced, kept and/or accumulated in <br /> 2. <br />